Qianhe Flavor Industry (603027): The rapid development of high-fresh products nationwide speeds up

Qianhe Flavor Industry (603027): The rapid development of high-fresh products nationwide speeds up

Event: The company achieved operating income in 2019H1 5.

0.94 million yuan, an increase of 24 in ten years.

07%; net profit attributable to mother 8731.

490,000 yuan, a year reduction of 35.

55%; deduct non-attributed net profit 8015.

750,000 yuan, an increase of 34 in ten years.

35%.

The net profit attributable to mothers decreased, which was mainly due to the net income from asset disposal of 6910 in the same period last year.

The base effect brought by 520,000 yuan.

Among them, company Q2 achieved operating income3.

30,000 yuan, an increase of 29 in ten years.

96%, net profit after deduction is 3461.

30,000 yuan, an annual increase of 61.

64%.

The rapid development of high-fresh products promotes the stable and high growth of condiments. The condiment segment of the company in H1 2019 achieved operating income4.

950,000 yuan, an annual increase of 34.

3%, maintaining rapid growth.

Among them, soy sauce led the growth and realized operating income3.

56 ppm, an increase of 37 in ten years.

04%.

Vinegar realized operating income of 99.23 million yuan, an increase of 20 per year.

87%, an increase over the previous Q1.

Caramel performance continued to change, achieving operating income of 78.43 million yuan, a year-on-year decrease of 17.

64%.

In terms of products, high-end products achieved rapid growth, and the sales revenue of high-fresh soy sauce (high-fresh 135, extremely fresh) reached 82 million in the first half of the year, an increase of 100% +.

0 Adding soy sauce (organic, virgin incense) grows 49% annually.

The gross profit margin of the company in Q2 2019 was 45.

03%, down 3 from the first quarter.

23 units, or because the company will adjust the channel rebate at the end of 2018 to rebate in the form of product discounts, which will affect the gross profit margin.

The sales expense ratio increased slightly, and high-growth growth outside the province helped increase revenue. From a regional perspective, the base market realized sales revenue in the first half of the year.

92 ppm, an increase of 16 in ten years.

4%, compared 杭州龙凤网 to 6 in the first quarter.

The 23% growth rate has increased rapidly.

The market outside the province maintained rapid growth, with eastern China growing by 28 in the first half of the year.

52%, North China, Northwest China, and Northeast China all grew more than 50%, and East China increased 44.

98%.

The rapid growth in and out of the province is mainly due to the company’s advertising in local areas and the 0-add strategy formulated by the early company. The 0-add brand repositioning and cost placement focus are significant.

In addition, the company’s online sales maintained rapid growth. In the first half of the year, e-commerce sales were 52.96 million yuan, an annual increase of 59.36%.

2019Q2 three rate of 30.

65%, an increase of 1 from the previous quarter.

87 total, mainly because the sales 无锡夜网 expense ratio Q2 is 24.

32%, an increase of 1 over the first quarter.

65 units.

The company plans to acquire Hengkang to make a nationwide plan, and the company will continue to promote the construction of production capacity.

Acquired 100% equity of Zhenjiang Hengkang Sauce and Vinegar Co., Ltd. at a price of 150,000 yuan.

Zhenjiang Hengkang Sauce and Vinegar Co., Ltd. was established in October 1998. Its main business is the production and sales of vinegar. It owns the brands “Zhenheng” and “Hengtai”, and its main sales markets are Jiangsu and Hubei.

The company hopes to speed up the national vinegar market through the distribution of Zhenjiang balsamic vinegar.

At the same time, the company continued to promote the construction of production capacity and provide capacity guarantee for subsequent development.

The first phase of the company’s “25-month-per-year brewing soy sauce and vinegar production line expansion project” was completed and completed in June 2019. The second-stage construction and expansion completed 10 front-end / year brewing soy sauce production lines and5 front / year brewing soy sauce production line.

Earnings forecast This year, the company has set a condiment growth target of 30.

6%, from the perspective of sales in the first half of the year, we believe that this goal is likely to be completed, and the company is expected to achieve sales revenue of 13 in 2019.

21 ‰, an increase of 24% in ten years, and net profit attributable to mothers2.

24 ppm, 17% increase over ten years, EPS0.

6 yuan, the current expected corresponding value is 42 times, taking into account the evaluation characteristics of the condiment industry and the company’s long-term growth ability, give a 45-fold target conversion, target price of 27 yuan, give a buy rating.

Risks indicate that the company’s revenue growth is lower than expected, and market competition has intensified, leading to major management flaws.