Juewei Food (603517): Volume and price of main business rise, convertible bonds boost production capacity expansion

Juewei Food (603517): Volume and price of main business rise, convertible bonds boost production capacity expansion
A brief evaluation of performance The company achieved operating income in 201843.6.8 billion, +13 in ten years.45%; net profit attributable to mother 6.4.1 billion, previously +27.69%; earnings per share 1.56 yuan / share, 6 dividends for every 10 shares.1 yuan to 4 shares. The number of operating analysis stores increased by 9.5%, single store revenue increased by 3.6%: The company’s 18-year Q4 revenue and net profit attributable to mothers were 11 respectively.2.0 billion (previously +14.71%) and 1.5.3 billion (previously +23.6%), the growth rate was mainly due to the faster opening of stores in Q4 and the increase in single store revenue.As of the end of 18 years, the company has established 9,915 stores (excluding Hong Kong, Macao and Taiwan) in the country, with a continuous growth9.5%, 862 new stores were added, the total number of stores exceeded 10,000 at the end of the first quarter of 19, and officially entered the era of 10,000 stores.18 years of single-store revenue 42.500 million, an annual increase of 3.6%, single store efficiency improved.In the future, the company will continue to maintain the opening speed of additional 800-1200 stores, and the market expansion speed of overlapping “string pepper” flavors of overlapping stores will accelerate to ensure continued growth in revenue. Both the volume and price of fresh goods rose, and the channel structure was good: the company’s fresh goods revenue was 4.2 billion, previously +13.62%, of which the amount increased by 4.7%, the price increased by 8.9%.In terms of categories, the income of poultry / livestock / vegetables / other products was +16 respectively.87% / 35.26% / 29.22% / 11.2%, both achieved double-digit growth.The sales volume of each sub-category also achieved double-digit growth.Benefiting from the price increase at the end of 2017, the company’s ex-factory ton price of fresh goods increased by 8.5%, of which the price of poultry increased by 7.7%, the price of livestock increased by 11%, and the price of vegetables increased by 6.9%.In terms of different regions, the Central and East China main sales areas grew steadily, and realized revenues11.400 million and 11.200 million, previously +12.4% and +11.8%, rapid growth in Northwest and 天津夜网 South China, +78 respectively.7% and +17.0%, the overseas market also achieved 56.63 million in revenue, forming a stable core region, accelerated growth regions, a good channel layout of emerging regions heavy volume. Cost-side pressure eased and the capacity of convertible bonds increased: the company achieved gross margin of 34 in 18 years.4%, 1%.With 49 average values, the cost of ducks and affiliates in 18 years has risen to the pressure of gross profit margin. In order to cope with the pressure of rising raw material prices, the company has gradually stocked and processed. The company achieved a net interest rate of 14 in 18 years.7%, increase by 1 every year.7 units, mainly due to the decline in sales expense ratio of 2.A total of 8 increase the efficiency of cost placement.The company’s 18-year convertible bonds were issued smoothly, and the funds raised were 杭州夜网论坛 used to further increase the capacity construction. Tianjin, Jiangsu, Wuhan and Hainan are expected to add 7 after reaching capacity.93 maximum capacity, complement existing capacity, consolidate the advantages of capacity, and continue to strengthen the competitive advantage. Earnings forecast We expect the company to achieve operating income of 50% in 2019-2021.29/57.01/63.2.1 billion, previously +15.13% / 13.36% / 10.88%; net profit attributable to mother 7.69/9.01/10.5.1 billion, +20 in ten years.00% / 17.20% / 16.61%; realized expected return1.87/2.20/2.56 yuan, the current sustainable corresponding PE is 24.2 times / 20.6X / 17.7x, maintain “Buy” rating. Risks suggest that store growth is lower than expected, raw material prices rise, food safety issues