Qiaqia Food (002557) Interim Review: Category Development Focused on Price Increase Effect
Comment event: Qiaqia Food released its 2019 Interim Report, and the company achieved revenue 19 in the first half of the year.
8.7 billion, +6 per year.
02%; net profit attributable to mother 2.
2 ‰, +28 a year.
08%; deduct non-net profit 1.
72 ppm, +41 for ten years.
32%; revenue in the second quarter alone was 9.
47 trillion, ten years +11.
78%; net profit attributable to mother 1.
070000 yuan, +20 for ten years.
80%; deduct non-net profit of 86.22 million yuan, +44 for ten years.
2019H1 gross profit margin 31.
82%, an increase of 2 a year.
31 points; net profit attributable to mother 11.
009%, an increase of 1 in ten years.
91pct, period cost rate is 19.
35%, a year to raise 0.
4pct, in which the sales expense ratio increased by 0.
2019H1 sales rebate 22.
56 trillion, ten years +6.
02%, sales yield 113%, inventory 6.
390,000 yuan, at least -15.
59%, cash flow statement and balance sheet indicators show that the company is operating healthy.
Revenue analysis: The growth rate was affected by the divestiture of subsidiaries, focus on category development, and high growth of core categories in 2019H1 company revenue19.
8.7 billion, an annual increase of 6.
02%, of which Q1 and Q2 increase by 1.
78%, of which the company sold the equity of Baotou Huakui, Jiangsu Qiaikang and Shanghai Qiaqia on August 8, 2018, and October 26, 2018, respectively, affecting a total of about 80 million in 2019H1 revenue and increasing revenueSpeed is about 4%, excluding the impact of subsidiary sales, we expect revenue growth to be around 10%.
In terms of products, 2019H1 company’s core categories of sunflower seeds and nuts categories achieved revenue of 13 respectively.
7.9 billion and 2.
79 trillion, an increase of 14.
83%, the size of other categories decreased to some extent.
Among them, the red melon seed bag increased by about 8% -10%, the blue bag melon seed increased by about 30%, and the daily nut small yellow bag increased by about 40%.
In terms of different regions, the domestic sales (excluding e-commerce) of 2019H1 companies, e-commerce, and overseas sales revenue growth rates were 4 respectively.
46%, the domestic sales growth rate is the same as in the past, and the e-commerce revenue has increased rapidly, mainly due to the online daily volume of nuts, yam fragments and other products.
We believe that the company’s growth rate in the first half of the year was mainly affected by non-recurring factors such as the replacement of subsidiaries. The development of the company’s core categories has improved. Step by step, the completion of the blue bag 9 trillion, and the small yellow bag 8-9 trillion revenue plan is not under great pressure.
Gross profit margin: Last year’s price increase, growth rate effect, daily nut volume also affected the gross profit margin of the company’s gross profit margin in 2019H131.
82%, an increase of 2 a year.
31pct, mainly affected by price increase of 8% 南京夜网 -10% in the second half of 2018.
In addition, the reduction of the incremental tax rate that began on April 1, 2019 also brought a certain price increase effect. The scale effect of daily nut products was converted into a conversion, which also had a certain impact on the overall gross profit margin.
In terms of categories, the gross profit margin of sunflower seeds in 2019H1 is 35.
28%, a year up 0.
38pct, gross profit margin of nuts 21.
26%, the highest increase of about 3pct, sunflower seed gross margin increase decreased, mainly due to the impact of raw material prices.
Period expenses: In the first half of the year, advertising promotion fees increased, and new marketing in the second half of the year brought new momentum.
09%, increase by 1 every year.
91 points, deducted non-net interest rate from mother 8.
68%, an increase of 2 per year.
17pct, the increase is slightly lower than the gross profit margin 2.
The 31pct range is mainly due to the increase in advertising promotion fees in the sales expense ratio by 0.
46pct, mainly due to the company’s efforts to promote daily core nuts and other categories in 2019.
In the second half of 2019, the company cooperated with China and China to replace the daily nut packaging, launched new category promotional videos, new packaging, and new promotional videos to highlight the core selling points of the product.
In fact, the company joined hands with Focus Media to increase the marketing promotion of new media such as elevator advertising, new packaging, and new media to promote the release of new product momentum.
Follow-up outlook: the impact of non-recurring factors will decrease, price increases, and new marketing will help increase revenue. The company was affected by the replacement of subsidiaries in the first half of the year. The growth rate was replaced but the core categories maintained rapid growth.Smaller, combined daily nut series marketing releases release kinetic energy, and annual revenue growth rate of 15% is expected to be realized.
On the profit side, the price increase effect of the product, the indirect price increase effect brought by the increase reduction, the daily nut scale effect is still there, and the gross profit margin will still improve.
At the same time, the company’s cost-effectiveness ratio has gradually increased, and the overall expense ratio is still under control, and the profit growth rate is higher than the income growth rate.
Earnings forecast and rating: From the perspective of expectations, the company focuses on core category development, and the price increase effect is still there. New media and new marketing are designed to bring new momentum and gradually develop worry-free.15%, 13.
5%, 12%; net profit growth rates were 22%, 20%, and 18%; the corresponding EPS was 1.
48 yuan / share.
We give 24 times PE according to 2020 performance, target price is 30 yuan, and maintain “overweight” level.
Risk reminders: fluctuations in raw material prices; deterioration of the sales environment; food safety issues, etc.