Haitian Flavor Industry (603288) 19th Annual Report Review: High-speed and Steady Growth in Performance Regions Are More Balanced

Haitian Flavor Industry (603288) 19th Annual Report Review: High-speed and Steady Growth in Performance Regions Are More 杭州夜网 Balanced

I. Overview of the event On August 14, 19, Haitian Flavor announced the semi-annual report for the year 19.

At the core of the report, the company achieved revenue of 101.

6 billion yuan, +16 per year.

51%, achieving net profit attributable to mothers27.

500,000 yuan, +22 a year.


Second, the analysis and judgment of 19H1 performance maintained rapid growth, the three core categories contributed 76.

69% of the revenue increase in 19H1 companies achieved 101 revenue.

60 trillion, ten years +16.

51%, equivalent to 46 revenue in Q2.

7 billion, previously + 16%, the growth rate remained stable compared with the previous quarter; net profit attributable to mothers was achieved12.

74 ppm, +21 for ten years.

79%, the growth rate remained stable.

In general, the company’s performance in 19H1 maintained a rapid and stable growth, adding a strong mark to the completion of the expected “revenue + 16%, net profit + 20%” target.

In terms of different products, the revenue of the three core categories of 19H1 / Q2 soy sauce, seasoning sauce, and oyster sauce was changed to +13.

61% / 12.

33%, 7.

48% / 9.

32%, 21.

13% / 17.


In terms of channels, the report reported that the traditional traditional offline channels maintained steady growth (+13 per year).

9%), and online channels achieved rapid growth (+44 for the year).

39%), accounting for 1 from 18H1.

69% increased to 2 in 19H1.


By region, driven by the expansion of dealers, revenues in the central and western regions increased significantly (the central region increased by 97 dealers and revenue increased by +18.

79%; 100 dealers in the western region have a net increase of 100, with revenue of +23 for two years.

93%), the regional distribution of business is more balanced.

The volume of oyster sauce reduces the gross profit margin; during the period, the cost efficiency and net income from changes in fair value both increase and raise the net profit margin: the reported growth rate, the company’s gross margin reached 44.

86% every year -2.

25%, which is related to the increase in the proportion of oyster sauce products with relative gross profit. It is expected that there may be some costs in Q2 (gross profit rate in 19Q2, the sales expense ratio doubled, but the gross sales difference is basically stable in terms of overall perspective)Interest rate: 19H1 company’s net interest rate reached 27.

07% for one year.

29%, against the background of a significant decrease in gross profit margin, the net interest rate increased against the trend, mainly due to the period expense efficiency and fair value changes in net income revenue share increased: the 19H1 period expense ratio decreased -3.

39%, sales / management / R & D / financial expense ratios were twice.

49% / 0.

14% / 0.

05% / 0.71%, of which the significant decrease in sales expense rate was mainly due to the fact that some distributors chose to pick up the product, which caused the freight rate to drop by 1.

For the nine expenditures, the decrease in financial expense ratio was mainly due to the significant increase in interest income from deposits for the current period.

91 single; net income ratio of changes in fair value before revenue +0.

85% is mainly due to the report that high-level companies have implemented the new accounting standards for financial instruments, and the income of some bank wealth management products has been included in the fair value gains and losses account.

At the same time, the three ends are working together, and the long-term optimistic performance of Haitian Flavor Industry continues to grow1.

Capacity: Haitian started the Gaoming 220-inch condiment expansion project at the end of 2017, with a total expansion of 220 tons (including 150 inches of soy sauce, 30 tons of soy sauce, and 40 tons of compound seasoning). The new soy sauce capacity is close to over the existing basis.Times, showing the firm confidence of the company’s future space.

It is assumed that the production capacity will gradually be released in 2019 and fully released in 2023. At the same time, the factors of price increase and product structure upgrade will overlap. In the future, the CAGR of soy sauce and seasoning products will be about 15% and 9 respectively.

5%, so the release of production capacity sets the tone for the continuous growth of the “three five” plan that began in 19 years; 2.

Product side: Focus resources on three core categories of soy sauce, oyster sauce, and soy sauce, promote the upgrade of soy sauce structure, increase the volume of oyster sauce, strengthen the cultivation of new markets for soy sauce, and devote to the research and development of new categories such as vinegar and cooking wine;

Channel: Promote the sinking of the channel, and through the expansion of the number of sales personnel and dealers, realize the development of the blank market in the central and western regions and boost the revenue growth.

Third, the investment proposal is expected to achieve operating income of 197 companies in 19-21.

60 ppm / 228.

82 ppm / 263.

1.4 billion, ten years +16.

0% / 15.

8% / 15.

0%; net profit attributable to listed companies is 52.

3.7 billion / 61.

89 ppm / 71.

93 trillion, +20 for ten years.

0% / 18.

2% / 16.

2%, equivalent to 1.

94 yuan / 2.

29 yuan / 2.

66 yuan, corresponding to PE is 51X / 43X / 37X.

The current condiment sector is estimated to be 58 times overall, and the company is currently estimated to be 61 times, which is slightly higher than the overall level of the sector. Considering that the company has a three-pronged approach in terms of capacity, products and channels, it is expected that the company’s performance growth will be faster than in the future.Industry average.

In summary, maintain the “recommended” level.

4. Risk Warning: Consumption upgrade is not up to expectations, the prices of upstream raw materials have risen abnormally, food safety risks, etc.