Haitian Flavor Industry (603288): Stable performance and leading style
Event: The company announced its semi-annual report and achieved operating income of 101 in the first half.
60,000 yuan, an increase of 16 in ten years.
51%, net profit attributable to mother 27.
50,000 yuan, an increase of 22 in ten years.
Revenue in the second quarter alone was 46.
7 ‰, an increase of 16% in ten years, realizing net profit attributable to mothers12.
73 ppm, an increase of 21 in ten years.
The company’s revenue growth rate exceeded expectations, and the growth rate of seasoning sauce has improved: in terms of products, the company’s three major categories of soy sauce, seasoning sauce and oyster sauce increased in the first half of the year.
13%, of which the growth rate of soy sauce and oyster sauce products slowed down in the second quarter. Seasoning sauce products were actively adjusted by the company to achieve breakthrough levels and promote continued to the end.
The sum of the growth rates of the three major categories is lower than the total growth rate of 16.
51%, representing the growth of new categories such as cooking wine and vinegar over 37%, achieving leapfrog development and continuously expanding and expanding product categories.
The company ‘s original oyster sauce expansion project, Gaoming 15, was completed in June. The expansion of production capacity will effectively support the high growth of oyster sauce product sales.
The gross profit margin decreased due to the impact of cost and product structure, and the expense ratio continued to improve: the company’s gross profit margin was 44 in the first half of the year.
86%, a decrease of 2 over the same period last year.
25 averages, obviously exceeding the maximum.
The decline in gross profit margin was due to the rise in prices of raw materials such as soybeans, which ended on June 30, and the market price of soybeans was 4,226.
7 yuan / ton, an increase of 12 per year.
Although Haitian’s purchases of condiments range, its bargaining power on the upstream is limited, which has affected its profit.
Subsequently, low-margin categories such as oyster sauce, vinegar, and cooking wine grew faster, resulting in lower gross profit margins due to product 杭州桑拿网 structure changes.
As the company strengthens its purchasing strategy, the company’s gross profit margin will be restored for the optimization of production within a single category.
The most obvious improvement in the company’s expense ratio was the sales expense ratio, which was 11% in the first half of the year, a decrease of 2 from the same period last year.
49pct, especially the transportation cost rate and promotion cost rate are significantly reduced.
Haitian’s current density of dealers has further expanded, and the proportion of dealers choosing self-lifting models has increased, and unit freight has been diluted.
In general, the company has obvious scale advantages, with costs and sales barriers that are difficult for other companies to surpass.
In the future, the company’s gross profit margin will remain 武汉夜生活 stable or slightly increase, with high profitability and leading style.
Profit forecast: EPS is expected to be 1 in 2019-2021.
72 yuan, corresponding to PE of 50, 42, 37 times. The company’s performance is stable, and it is favored by the capital of the north in the context of the increase in the openness of the capital market. It is also a high-quality hedging target in the market turbulence stage. The estimated premium is given.Evaluate switching and maintain “Buy” rating.
Risk Warning: Less than expected sales; food safety issues