Haitian Flavor (603288) Third Quarterly Report Review: Q3 Growth Slightly Increases MoM
Event description Haitian Weiye disclosed three quarterly reports on October 29 that the company’s net profit in the first three quarters was 38.
35 ppm, an increase of 22 in ten years.
48%, revenue 148.
20,000 yuan, an increase of 16 in ten years.
Incident Comment Q3 growth rate increased slightly from the previous month, and the company continued to grow.
2019 is the beginning of the company’s third five-year plan, and 2019 is the company’s planned total operating income target of 197.
6 billion (16%), with a profit target of 52.
3.8 billion (+ 20%).
In the first three quarters of 19, the company realized operating income of 148.
24 ppm, +16 a year.
62%, net profit attributable to mother 38.
3.5 billion, +22 a year.
48%, in line with the annual target.
One single Q3 realized operating income of 46.
USD 6.5 billion, an annual increase of 16.
85%; net profit attributable to mother 10.
85 ppm, an increase of 22 in ten years.
84%, chain revenue in the first half of the year, net profit (16.
1) In terms of products, the company’s three core products, soy sauce and oyster sauce, have maintained stable development, and the adjustment effect of sauce products has been prominent. Soy sauce / soy sauce / oyster sauce revenue increased in the first three quarters.
76% / 9.
21% / 20.
33%, single quarter revenue increased by 14.
08% / 13.
80% / 18.
70%, compared with Q2 growth rate increased by 1.
4pct; 2) In terms of channels, the offline channel revenue in the first three quarters of 2019 was 138.
04 trillion, +14 a year.
79% of online channels achieved revenue2.
8.1 billion, +34 per year.
60%, single Q3 online and offline revenue growth rate was 16 respectively.
17%, offline growth accelerated, online growth rate; 3) In terms of regions, the company continued to deepen channel operations, of which the central and western regions had the highest growth rate, with a growth rate of more than 20%, and the northern and southern growth rates were earlierSlow, maintained at about 10%. In the first half of the year, the company added a net increase of 693 dealers, with a net increase of 283, 144, 132, 98, and 36 in the north, west, central, east, and south respectively.
The gross profit margin continued to be under pressure, and the strong ability to control expenses led to an increase in net profit margin.The company’s net profit margin for the first three quarters of 19 was 25.
88%, with an annual increase of 1.
24pct, mainly due to the strong ability to control expenses, leading to a decline in the expense ratio during sales.
Specifically, the gross profit margin of sales in the first three quarters was 44.
51%, down by 1 every year.
96pct, with a single Q3 gross margin of 43.
75%, down by 1 every year.
33pct is expected to be 杭州桑拿洗浴会所 mainly due to the increase in the cost of some raw materials. The depreciation generated by the company’s initial expansion of production and technological transformation projects will have some impact on the gross profit margin, but the decline in the gross profit margin will narrow.
The company’s expenses during the first three quarters of sales14.
39%, a decrease of 3 per year.
62pct, of which selling expenses cost 11.
59%, down 2 every year.
59 points, mainly due to the significant reduction in the rate of transportation expenses and promotional expenses. Some dealers chose the method of self-lifting of products, and the management expense ratio (including research and development) was 4.
38%, a reduction of 0 per year.
34pct, which reflects the company’s higher operating management efficiency.
Accelerate the layout of production capacity to escort the development of the “three five”.
With the completion of the second phase of the fund-raising project in Gaoming, the company’s production capacity is now basically saturated, and the company will gradually complete the capital increase and expansion projects for the Gaoming base, accelerate the power generation release in Jiangsu base and the second-phase construction of the project, speed up the production capacity layout, and betterRespond to the market, grasp the development potential, and protect the company’s “three five” development.
Investment suggestions Although the growth rate of the current condiment industry is gradually decreasing, the concentration of the entire condiment industry is still in a relative state. The concentration of the industry needs to be improved, and the stronger will be further reflected.
2019 is the beginning of the company’s three-five-year plan. The start is solid. As an absolute leader in the condiment industry, the company’s brand image, product quality, channel construction, and refined management are industry benchmarks. In the future, the company will use Haitian’s platformAnd superior resources, accelerating the development of multiple categories and varieties, and continuously improving the structural strength of products will drive continued growth in performance.
The EPS for 2019-2021 is expected to be 1.
71 yuan, corresponding to the company’s closing price of 109 on October 29.
10 yuan, PE for 2019-2021 is 56X / 47X / 40X, maintain “Buy” rating.
There is a risk that industry demand is lower than expected, raw material price fluctuation risks, food safety risks