Anjing Food (603345) Third Quarterly Report Review: Good Revenue Growth, Profitability Keeping Up
Event Anjing Food announced the third quarter report of 2019, and the company’s 9M19 achieved operating income of 34.
93 trillion, ten years +18.
80%, of which 19Q3 achieved income 11.
58 trillion, ten years +16.
59%; 9M19 achieved net profit 2.
3.8 billion, +21 a year.
25%, of which 19Q3 achieved a net profit of 0.
73 trillion, ten years +34.
95%; 9M19 realized deducted non-attributed net profit 2.
1.3 billion, +21 a year.
71%, of which, in 19Q3, the net profit of non-attributed mothers was zero.
64 ppm, +25 a year.
49%; budget benefit is 1.
The main points of investment are to gradually achieve high growth, optimize and expand channels, and accelerate Q2 revenue growth.
9M19 revenue of 34.
9.3 billion, +18 a year.
80% (Q1: +14.
61%; second quarter: +25.
07%; Q3: +16.
59%), among which Q3’s revenue growth rate was a quarter-on-month growth rate, which was mainly due to the previous year ‘s adjustment of the previous year ‘s adjustment to the requirement of the company to ship in advance and the sales revenue of Q2, resulting in a higher base of Q2.
At first glance, the company’s capacity is steadily increasing with the gradual release of production capacity, and the growth momentum is good.
Pasta, sieve categories maintained high growth: 9M19’s top four categories of surimi products (proportion 37).
30%), flour products (accounting for 27.
56%), meat products (proportion 24.
63%), cationic products (proportion 10.
30%) respectively +22.
26% and +33.
For the third and third quarters, the company’s surimi products / noodles products / meat products / scheduled products are every +20.
56% / + 19.
11% / + 2.
81% / + 30.
The growth rate of meat products continued to increase at a low rate of 32%, mainly due to the company’s decrease in the proportion of meat products sales during the growth period of pork raw materials; noodles, surimi, and alternative products maintained steady and high growth.
Channel structure optimization duration: from the perspective of channel composition: 9M19 company’s revenue from distributors / supermarkets / e-commerce / techcom accounted for 86.
04% / 11.
27% / 2.
15% / 0.
54%. From the perspective of channel distribution, the company further weakened the low-margin business supermarket channels, increased the proportion of 武汉夜网论坛 high-profit distribution channels, and the structure optimization trend was obvious.
The number of 9M19 company dealers reached 668 (a net increase of 5), of which the net increase of dealers in Southwest and North China was significant, reaching 15 and 13, respectively, and a net decrease of 2 in East China.
From the perspective of regional composition: 9M19 companies accounted for 10 in Northeast / North China / East China / South China / Central China / Northwest / Southwest regions.
33% / 11.
78% / 43.
11% / 9.
88% / 11.
83% / 3.
89% / 10.
18%, of which 19Q3 companies in Northeast / North China / East China / South China / Central China / Northwest / Southwestern regions have multiple growth rates of -22.
62% / + 37.
34% / + 10.
53% / + 59.
45% / + 24.
43% / + 15.
09% / + 47.
57%, mainly 杭州桑拿网 because the capacity of the Liaoning plant is still limited, and the supply of capacity to the main markets (North China and Northeast China) is affected by changes in market strategies.
The gross profit margin dropped vertically, but the cost pressure was generally under control.
The company’s gross profit margin for 9M19 was 24.
95% a year -1.
34pct (Q1: 26.
36%; second season: 24.
70%; Question 3:23.
The decline in gross profit margin was mainly due to the increase in the price of chicken meat, which is currently used to replace pork raw materials, more than the company gradually expected.
The decline in gross profit margin is generally controllable, mainly due to the company’s efforts to reduce the discount rate of the product in three batches since the end of 18 under cost pressure.-3%, which involves about 50% of the products; the third round of price increase mainly covers hot pot meat products, accounting for 25%), leading the company to adjust the product formula to reduce the use of meat products and raw materialsRatio, and does not rule out the possibility of continuous price increases during the gradual increase in costs, it is expected that the gross profit margin will remain stable in the short term.
The expense ratio drops every year, and profitability remains stable.
Company 9M19 achieved net profit attributable to mother 2.
3.8 billion, +21 a year.
25% (first quarter: +19.
60%; Q2: +13.
85%; Q3: +34.
95%), Q3 profit growth accelerated mainly due to fee control.
9M19 company sales / management / finance / R & D expense ratios are 11 respectively.
98% / 2.
74% / 0.
16% / 1.
42%, -1 each year.
05pct / 0.
03pct / -0.
16pct / -0.
25pct, the cost rate totals -1 per year.
9M19 net profit is 6.
82% (Q1: 5).
92%; second quarter: 8.
09%; Q3: 6.
It is worth pointing out that the company’s non-current assets disposal losses in 19Q3 decreased, government subsidies and financial asset investment income increased and even contributed to profit growth.
1.3 billion, +22 a year.
12% (first quarter: +23.
42%; second quarter: +18.
95%; Q3: +25.
56%), 9M19 deducted non-return mother net interest rate is 6.
10% (first quarter: 7.
26%; second season: 7.
23%; third quarter: 5.
Mid- and long-term highlights: In the medium-term, the nationwide layout of sales real estate is about to be completed, and the market share is expected to continue to increase.
The company’s overall main factories are mainly concentrated in the eastern coastal areas (2 in Xiamen, 2 in Jiangsu, 1 in Liaoning, and 1 in Sichuan). It plans to expand with the “sale of real estate” model. The capacity of the Sichuan Ziyang plant will be gradually released in 2019. It is expected thatAt the end of 19, the company’s total designed production capacity is expected to reach around 42.
At the same time, the company’s announcement showed that no more than 900 million convertible bonds will be publicly issued for the expansion of production capacity in Hubei, Henan and Liaoning. The increase in production capacity will reach 15, 10 and above 4 marks, respectively.
It is expected that the company will form 7 production bases and a nationwide layout of 9 factories in 2020. When the production capacity is fully released, the total production capacity is expected to reach more than 60.
Facing the strong demand for hot pot in central China, the company has been actively expanding its channels. It is expected that after the national production capacity is completed, the revenue volume will reach more than 6 billion US dollars in 2020, and the market share will promote continuous improvement.
Long-term-Profitability may gradually become apparent after sharing stability.
In the process of expanding the city’s share of the budget, the budget company moderately reduced the price when the cost was low, and was relatively cautious about raising the price when the cost was high, and obtained an increase at the cost of losing some of the net interest rate, resulting in fluctuations in performance.
With the expansion of the company’s scale, the cost advantage brought about by the emergence of scale effects will become more prominent. Under the condition that the pricing is lower than that of the industry, the company can also enjoy higher profits. Then, in the face of cost fluctuations, performance stability is expected.Better than the industry, it is expected to achieve a virtuous circle of the leading strong Hengqiang.
Profit forecast and investment advice The company is currently in the mid-term of cumulative release + nationalized layout. In the future, it will change brand ratings and channel sinking, the industry penetration rate will continue to increase, and the effect of scale will continue to appear.
We expect the company’s revenue and net profit to be 51 in 2019.
4.6 billion (+20.
8%) and 3.
2.1 billion (+18.
6%), corresponding to the closing price on October 21, 2019. The company’s PE in 2019 is 38x.
Maintaining the level of “prudent increase in holdings”, it is recommended to pay active attention.
Risks prompt macroeconomic fluctuations, raw material cost fluctuations, increased industry competition, and food safety issues