Anjing Food (603345)： Steady revenue and profit growth, cost control advantages prominent
Anjing Food (603345): Steady revenue and profit growth, cost control advantages prominent
Event: The company announced its 2018 annual report and achieved revenue 42.
5.9 billion yuan, net profit attributable to mother 2.
7 billion, an increase of 22 each year.
The EPS is 1.
25 yuan / share, 10 shares 3
76 yuan (including tax).
Single fourth quarter revenue13.
1.9 billion, net profit attributable to mother 0.
7.4 billion, an increase of 26 each year.
Hotpot and noodles maintained a growth rate of about 20%, and alternative products targeted at the catering channel became a new growth pole: the company’s overall output in 2018 was 43.
19 for the first time, with 41 sales.
34 each year, respectively, each year 22.
70%, the price of 10,302 yuan, an increase of 1.
The 18-year output increased by a maximum of 8 and the hot pot ingredients increased by 4.
4 Initially, the increase mainly comes from the second phase of Taizhou and the first phase of Liaoning, with a 1-point increase.
The largest increase is mainly due to the endogenous growth of the fifth workshop of Xiamen No. 2 Plant and several production lines in Liaoning.
In terms of different products, the company achieved 10 in the past 18 years.
9.8 billion, meat products11.
9.5 杭州桑拿网 billion, surimi products 15.
6.7 billion, granular products 3.
9.5 billion (upgrade and expansion of other original frozen products), an increase of 18.
The worse-than-average growth rate of noodles is mainly due to increased production capacity.
Initialized in 18 years and implemented the business strategy of “three swords combined, catering force”, after classifying and upgrading other products, the categories that are adapted and targeted to the characteristics of the catering channel are classified as substitute products, and production and marketing management is more clear, and substitute products become new products.Growth pole, the proportion increased by 1.
62 points to 9.
Increased prices stabilized the cost increase, the scale effect led to the decline 上海夜网论坛 in the sales expense ratio, the net interest rate steadily increased in the first half of 18 years, especially Q2 pig prices fell significantly, in the second half of the year, pig prices continued to rebound, the growth rate decreased, chicken prices continued to rise, the company’s procurementSignificant cost increases.
By increasing the amount of raw materials purchased in advance, the company locked in low-cost raw materials, and in September and late December for the first time indirectly raised prices for products with increased raw materials to reduce promotional efforts.The price increase effect in September was mainly reflected in 18Q4, and the price increase effect in December was reflected in 19 years.
It can be seen that the raw price of raw minced fish surimi is increased by 6 per year.
At 67%, the gross margins of quick-frozen meat products and quick-frozen surimi products were 26.
88%, the same increase of 2.
With 18 digits, the price increase has suppressed the cost increase and driven the gross profit rate.
Noodle gross margin 18.
64%, a slight decrease of 0.
76 single, 29 relative products.
72%, a decrease of 9 points, mainly due to the strategy of increasing the promotion of Qianye Tofu and using the highest gross profit margin products to seize the catering market.
Preliminary consolidated gross profit margin 26.
5% increase by 0.
2 points, tax rate is 0.
85%, down with 0.
The effect of scale drove the sales expense ratio down by zero.
6 points to 13.
Affected by rising wages, the management expense rate (including research and development) also increased by zero.
03 points to 4.
Affected by the increase in short-term loan interest and convertible corporate bond interest, the financial expense ratio was zero.
38%, the same increase of 0.
Maximum net interest rate 6.
34%, an increase of 0.
In response to non-plague and rising costs, the company launched a comprehensive response plan for January’s non-plague virus-containing meatball alignment products. The 18-year report provided a 581 million drop in inventory price, including the potential impact on 19Q1.
In response to the problems found in the industry last year, the company began to purchase imported pork to replace domestic meat in October 18, and to purchase testing equipment. Until the beginning, raw pork was mainly imported, and each factory also had testing capabilities.
The cost pressure brought by rising pig prices this year and next will be transmitted, and imported pork will be more expensive than domestic production.
Facing the actual situation, the company will purchase low-cost raw materials in advance to lock in some costs. In the future, it may respond by increasing the price again.
Earnings forecast and rating: The company adjusted the convertible bond project according to the urgency of market demand and will raise the original fundraising4.
The plan to invest 8.7 billion in Sichuan 15 was changed to 2.
500 million invested in Wuxi Minsheng 7 involved in rice products, 2.
3.7 billion will continue to be invested in the Sichuan base, and Wuxi Minsheng is expected to produce in the first half of 2020 to address the market demand gap for noodle products.
The Henan and Hubei factories are expected to be put into production in the first half of 2020.
We estimate that the Sichuan plant will release 2 insertion capacity in advance in 19 years, Taizhou will release 3 insertion capacity, and Liaoning’s endogenous technological improvement will increase 1 insertion capacity, adding 6 options.
Taking into account the two price increases in September and December 2018, the price contribution is in the single digits.It is estimated that the revenue growth rate in 19 years will be 18%. Taking into account the pressure of increasing costs on the profit side, the scale effect will continue to reduce the expense ratio. The conversion will be beneficial to the company’s circulation channel to partially thicken the income. The difference between the input tax and output tax rates will decrease by 1 point., Is expected to grow slightly faster than revenue.
2021 revenue growth rate of 18%, 23%, 20%, EPS is 1.
At 31 yuan / share, we are optimistic about the company’s long-term development and potential to become a leading large-scale food company in the quick-freezing industry. We give 35 times PE this year with a target price of 52.
5 yuan, overweight level.
Risks suggest sales fall short of expectations, and pork and other costs increase faster than expected