Zhongju Hi-tech (600872) Company dynamic comment: The main business tide is stable and the chat is treated with a new look

Zhongju Hi-tech (600872) Company dynamic comment: The main business tide is stable and the chat is treated with a new look

Matters: China Torch High-tech released its 18-year annual report, and realized revenue of 41 in 2018.

7 billion, a previous appreciation of 15.

4%; net profit attributable to mother 6.

1 billion, an increase of 34 previously.

0%; deduct non-net profit 5.

700 million, an increase of 37 previously.


Estimated 4Q18 to achieve 10 revenue.

0 billion, an increase of 13 previously.

8%; net profit attributable to mother 1.

2 billion, an increase of 23 previously.


It is proposed to distribute 2 for every 10 shares.

3 yuan.

Investment point of view: 4Q18 performance basically meets the previous notice.

It is estimated that the revenue growth rate of the delicious fresh subsidiary in 4Q18 is about 10.

4%, the net profit attributable to mothers decreased slightly by 1-2%; 4Q18 Zhonghuihe created approximately 10 million net profit attributable to mothers, pushing the consolidated statement net profit to increase by 23.


The distribution rhythm was adjusted at the end of the year, and the condiment ran stably in 19 years.

The delicious fresh subsidiary completed the 18 initial plan goals.

In the fourth quarter of 2018, the revenue of delicious fresh revenue increased by 10.

4%, consistent with the previous.

Year-end advance payment2.

400 million, an increase of 35% from the previous month, and an increase of 13% from one year. The reason is that the Spring Festival preparation time is earlier; the second is that the company actively controls the scheduling rhythm at the end of the year, leaving surplus grain for 19 years.

The main category of soy sauce has remained at 9 for 18 years.

Steady growth of 1%, it is estimated that the growth rate of extremely delicious single products exceeds 40%; at the same time, the growth rate of small categories such as oyster sauce and cooking wine is more than 40%, showing good growth of new categories.

In 18 years, the company has also achieved great results in terms of market layout (covering 80% of prefecture-level cities) and dealer construction (adding 178).

The focus in 19 years is still on blank market development and channel segmentation, as well as the extension and upward upgrade of continuation categories.

It is estimated that the pre-tax probability of condiment business in 19 years will increase steadily at about 14%.

In 4Q18, the delicious fresh net interest rate fell, and the profit margin of the consolidated statement rebounded.

Net profit for the fourth quarter of 2018 increased by 23.

4%, net margin increased by 1.

0pct, mainly from the increase in gross profit margin.

8pct (land business contribution income), and non-recurring gains and losses (investment income) increase.

Although the condiment gross margin will be reduced by 0.

6pct (mainly affected by the increase in raw material costs and the increase in the proportion of low gross margin categories), but it is estimated that 4无锡桑拿网Q18 should be 0 for multiple rebounds.

6pct is also in line with our judgment on the pressure on raw material prices in the fourth quarter.

The net fresh blood sugar drop of the delicious fresh quarter is expected to be related to the time of settlement of expenses (1-3Q18 sales expenses decreased by 12%, and the costs may be concentrated in the fourth quarter settlement). It can be seen that the delicious fresh net score is still 0.1pct boost.

Looking forward to the past 19 years, the impact of recovering minority shareholders’ equity is not considered for the time being. After the gradual reduction, the condiment profit should maintain an increase of more than 20%.

Considering that the parent company has no property sales in 19 years and the non-recurring gains and losses have decreased, the consolidated statement growth rate may be less than 20%.

We will make every effort to rectify minority interests and expect more improvement measures to be implemented.

The shareholders ‘meeting has already recovered the dispute of minority shareholders’ rights and the company will make every effort to promote the matter.

If it is successfully recovered during the year, it is expected that the thickening performance will exceed 70 million.

19 years is the first full year for Baoneng to settle in. The focus of work is to strengthen the internal staff integration, management adjustments, and system adjustments, which will put too much pressure on 19 year performance.

At present, the business indicators of condiments have changed, such as sub-division and intensive cultivation in regions, strengthening the assessment of business personnel, and strengthening dealer management.

Follow-up can be expected to more improved action landing.

Earnings forecast and investment recommendations: Due to prudence, we will not consider reconsidering the impact of minority equity and non-recurring gains and losses. It is estimated that earnings per share for 19-21 will be 0.

91, 1.

07, 1.

31 yuan, an increase of 19%, 18%, 20% a year.

If consideration is given to recovering a minority stake, the net profit of condiment in 19 years.

700 million, a growth rate of 35%.

The leaders of the delicious fresh subsidiary are stable, and the condiment business continues to improve.

Baoneng has become the actual controller of China Torch. If it can successfully solve the historical problems of the company’s minority equity and improve its continuous landing, it will continue to catalyze the company.

The merger and expansion of MSCI will replace China Torch Hi-Tech. It is still optimistic about the company’s development in the long term and maintains a “strongly recommended” investment rating.

Risk reminders: risks of macroeconomic fluctuations, risks of rising raw material prices, food safety incidents.