Haitian Flavor Industry (603288) 2019 First Quarterly Report Commentary: Three Five Opening Reported Success in Q1 19Q1

Haitian Flavor Industry (603288) 2019 First Quarterly Report Commentary: “Three Five” Opening Reported Success in Q1 19Q1

19Q1 results were in line with expectations.

1Q1 achieved 54 revenue.

900,000 yuan a year + 16.

95%, net profit attributable to mother 14.

77 trillion, ten years +22.

81%, deducting non-net profit 13.

97 ppm, +21 a year.

46%, with a budget benefit of zero.

55 yuan.

Achieved gross profit margin of 45.

8% per year.

9pct, net interest rate is 26.

9%, ten years +1.

3pcts, profitability continued to improve.

Revenue was stable, soy sauce / oyster sauce both increased, and the growth rate of sauce improved.

In 1Q1, the revenue side achieved steady growth with revenue of 54.

900,000 yuan a year + 16.

95%, the company has not raised prices since 19 years, and it is expected that the growth will be mainly contributed by sales.

By category, 19Q1 soy sauce / oyster sauce / soy sauce twice +14 respectively.

68% / 24.

63% / 6.

13%, among which soy sauce and oyster sauce achieved a solid growth driven by sales volume. At the end of 18, the company’s carding of the sauce market was basically completed, and the growth rate of sauces in 19Q1 gradually improved.

1Q1 final receipts reached 12.

9.6 billion, down 19.

400 million yuan, mainly due to pre-holiday payment and return to normal after the delivery, the same increase of 3.

200 million, channel payments remain healthy.

In terms of different regions, the revenue of each region maintained a steady growth of two figures. Among them, the growth rate of the western and central markets continued to lead, exceeding +26 respectively.

39% / 20.

16%, 10 years in the eastern region +17.

11%, reflecting good channel sales, consistent with grassroots surveys.

In 19Q1, the company had a total of 4,989 dealers, an increase of 208 dealers, and a decrease of 26 dealers. The number of increase in each region was 30+, and the number of new / new dealers reached 50+. The company steadily promoted the sinking of the channel and the gapMarket coverage.

In addition, the company’s online channels account for only 1% of revenue.

80%, but at least +64.

39%, achieving rapid growth.

Lean control of expenses, profitability continued to improve.

1Q1 company gross margin of 45.

78% every year -0.

At 9 points, 北京夜网 the prices of the main raw material soybeans remained stable and fell slightly. The decrease in gross profit was mainly due to the phased increase in costs of technological transformation of production capacity and the increase in procurement costs of auxiliary materials and packaging materials.Selling expense ratio 12.

03%, year -1.

2 pcts, which is expected to result from the company’s strengthening of the transporter echelon layout and the release of production capacity at the Jiangsu plant, which will result in a continuous and benign decline in the cause of transportation, and will also increase the expansion scale effect; the management expense ratio3.

46% every year -0.

2pct, the significant increase in interest income caused financial expenses to be reduced by zero.

48 ppm to -0.

7.8 billion.

Expense lean 佛山桑拿网 control lifted net interest rate to 26.

91% for ten years +1.


In addition, net cash flow from operating activities was zero.

53 trillion a year -88.

31%, due to the increase in materials procurement expenditure in the current period.

Promote capacity expansion and channel sinking, and move towards food platform companies.

2019 is the first year of the company’s third five-year plan, and the company plans to achieve operating income of 197 in 19 years.

600 million, + 16% per year, achieving a net profit of 52.

400 million, before + 20%, maintaining a steady growth; At the same time, the soy sauce / oyster sauce / soy sauce compound growth rate is expected to reach 12% / 15% / 10% in 19-23, and gradually expand small categories such as vinegar, cooking wine, and compound seasoning.

In 19, the company will focus on accelerating the informatization transformation and expanding the channel network construction. At the same time, it will gradually complete the expansion of the Gaoming base and the production capacity release of the Jiangsu base, and continue to expand the market leading edge. With the steady growth in the first quarter, we believe the company isThe goal can be successfully completed. In the future, as the brand’s influence further expands, the company will move towards a food platform enterprise.

Profit forecast, estimation and investment suggestions: The condiment industry has a good track, and there is room for improvement in the concentration of the industry. In the future, the company is expected to further expand its main industry advantages by expanding production capacity, optimizing product structure, and intensive cultivation of channels.

We maintain the company’s EPS forecast for 2019-21 to 1.



79 yuan, the current expected PE is 43/36/30 times. Considering the scarcity of the company’s extreme competitive advantage and strong barriers to development, it is expected to lead the company through the cycle and raise the target price to 94.

4 yuan, corresponding to 40 times PE in 20 years, maintaining the “strong push” level.

Risk reminders: Macroeconomic growth is declining, channels and new products are expanding less than expected, and food safety issues.