Yasui Food (603345): Steady revenue and high growth control fee increase net profit margin

Yasui Food (603345): Steady revenue and high growth control fee increase net profit margin

Performance summary: The company achieved revenue in the first three quarters of 201934.

900 million (+18.

8%), net profit attributable to mother 2.

400 million (+21.

2%), deducting non-net profit 2.

1.3 billion (+22.

1%); of which 19Q3 achieved income 11.

600 million (+16.

6%), the net profit attributable to the mother is 73.01 million yuan (+ 35%), and the non-net profit is deducted from 64.02 million yuan (+25.

6%), the performance exceeded market expectations.

Q3 revenue continued Q2’s rapid growth momentum and performed strongly.

1. Q3 revenue growth rate was 16.

6%, continued to maintain a rapid growth momentum: 南宁桑拿 1) In terms of categories, Q3 flour products, meat products, surimi products, and alternative products achieved revenue 3 respectively.

200 million (+ 19%), 2.

700 million (+2.

8%), 4.

300 million (+ 21%), 1.

USD 400 billion (+ 30%). Due to the sudden change in the growth rate of meat products due to cost and phase adjustment, other categories have maintained a rapid growth rate of 20% +.The channel growth rate was 15%, 24%, 7%, and 600%. The distribution channel as the main channel is still steadily advancing. Q3’s sales channel in the supermarkets has accelerated its direct sales, and the sales of fresh products have driven sales., East China, South China, Central China, Northwest China, and Southwest China achieved revenues of 82.18 million yuan (-23%), 1.

400 million (+ 37%), 600 million (+10.

5%), 1 billion (+ 59%), 1.

1 billion (+ 24%), 3124 million (+ 15%), 9294 million (+ 48%), Northeast China increased revenue due to Liaoning ‘s production capacity transmission to North China, and other regions all maintained large and rapid growth under channel penetrationgrowth of.

2. The company received Q3 accounts in advance7.

600 million, an increase of 2 every year.

9 billion (+ 63%).

The channel feedback terminal sold well, and dealers were actively stocking under the expected price increase.

Cost-bearing reduction in gross profit margins and compression of expenses increased net profit margins.

1, Q3 gross profit margin of 23.

9%, down by 1 every year.

73pp, reasons: 1) the price of raw materials such as pork and chicken rose; 2) the product phase adjustment, the growth rate of high-margin meat products was slower, the flour products with lower gross profit margins, and surimi products grew faster.

2. The company further reduced sales expenses by reducing promotions, and Q3 sales expense ratio decreased by 0.

9pp to 11.

9%, the management expense ratio increased by 0.

37pp to 2.

9%, the cost of refundable convertible bonds decreased, and the financial expense ratio decreased by 0%.

98pp to -0.

25%, the overall three rates dropped by 1.
5pp to 14.

5%; 3. At the same time, the company recorded investment income of 9.55 million yuan (finance income), increasing net profit.
Q3 net margin increased by 0.

86pp to 6.

3%, profitability has further improved.

Leading companies have outstanding adjustment capabilities and long-term logic.

1. Within the upward cycle of costs, the company effectively resolved cost pressures through product phase adjustments and price increases, and stabilized profitability through expenditure expenses, showing outstanding adjustment capabilities of leading enterprises.

Next year’s surimi, chicken prices will continue to increase, the company’s cost side has been under pressure, and the company is expected to further increase its price in the future.

2. The fluctuation of performance is a short-term factor, and the logic of long-term costs is clear: Benefiting from the high prosperity of the frozen food industry and its own capacity release cycle, the company’s income end has achieved a steady growth of 20%, and its performance is highly certain.

With a low market share, Anjing has obvious cost advantages and enhanced brand power. Leading companies with leading advantages will continue to harvest market share and increase the net interest rate.

Cost disturbance may affect the company’s profit release rhythm in the short term, but it does not change the company’s core value.

Earnings forecasts and investment advice.

Due to the slightly higher-than-expected profit in the third quarter, the expected profit forecast is raised, and the revenue for 2019-2021 is expected to be 51.

5 billion, 62.

4 billion, 74.

900 million, the net profit attributable to mothers will maintain a compound growth of 25% in the next three years, and the corresponding PEs are 36X, 28X, 23X, maintaining the “Buy” rating.

Risk warning: 北京桑拿体验网 raw material prices may fluctuate sharply, and sales may fall short of expectations.