Zhongju Hi-tech (600872) 2019 Third Quarterly Report Review: Improve Product Structure and Promote Channel Construction

Zhongju Hi-tech (600872) 2019 Third Quarterly Report Review: Improve Product Structure and Promote Channel Construction

1.

The company released its third quarter results and net profit increased by 12.

3%.

At the core of the report, the company achieved operating income of 35.

300 million (+11.

6%); net profit attributable to mother 5.

4.6 billion (+12.

3%).

Q3 achieved revenue of 11 in a single quarter.

800 million (+14.

9%), realizing net profit attributable to mother 1.

800 million (+22.

3%).

The company’s comprehensive gross profit margin is 39.

2% (+0.

13pcts); period expense rate is 19.

9% (+0.

09pcts), net interest rate remained at 17.

0%.

The company’s performance is in line with market expectations.

  2.

Improve the product structure and enhance the national market influence of the main categories.

The report is top-notch, with delicious fresh companies achieving revenue33.

57 trillion, ten years +14.

97%, net profit attributable to parent company 5.

43 ppm, an increase of 19 years.

1%.

Soy sauce products grew steadily, and oyster sauce continued its high growth trend.

In the first half of the year, soy sauce, chicken powder, soy sauce and oyster sauce increased by 10 respectively.

44% / 19.

32% / 12.

01% / 60.

93%.

The company focuses on the kitchen state brand and core products, and strengthens research cases and product development efforts on consumer trends. In 2019, it has completed new upgrades of light salt, small naughty low salt soy sauce and seafood, and steamed fish flavor soy sauce.

  3.

The market development and sinking continued to advance, and the growth rate of the catering channel increased.

The company proposes a channel planning strategy of “steadily developing the southeast coast, focusing on improving the northeast and northeast, accelerating the development of the southwest region, and gradually developing the northwest market”.

In the first half of 2019, there were 111 new dealers (a total of 975), 15 blank prefecture-level cities were developed, and 275 prefecture-level cities nationwide 深圳桑拿网 had been developed, with a development rate of 81%.The southeast region still maintains a growth rate of more than 10%, the central and western regions, and the northern region have a growth rate of over 20%.

Catering product sales increased 41 over the same period.

49%, much higher than the company’s overall sales growth.

  4.

Profit forecast and investment rating.

The company’s EPS for 2019/2020 is expected to be 0.

91 yuan / 1.

12 yuan, corresponding to 48 for PE.

1X / 38.

9X, estimated to be comparable to the median level of comparable companies in the same industry, but lower than Haitian Flavor (19 years.

5 times).

  The company’s PE level (TTM) is close to its average over the past five years.

Taking into account that the company’s Yangxi base has begun to expand its scale, Chibang’s intelligent 杭州桑拿网 manufacturing and lean production have brought continuous improvement in profitability, maintaining the “overweight” level.

  5,

risk warning.

Risk of fluctuations in raw material prices; risk of decline in the business climate.