Depth-Company-Qianhe Flavor Industry (603027): The region’s continuous expansion of condiment performance basically meets our expectations

Depth * Company * Qianhe Flavor Industry (603027): The region’s continued expansion of condiment performance basically meets our expectations

Qianhe Flavor announced the 2019 1 quarter report.

In the first quarter of 19, it realized revenue 2.

9 billion, with a previous appreciation of 18.

5%, net profit attributable to mother 0.

5.1 billion, down 54.

0%, deducting non-net profit 0.

4.6 billion, an increase of 19.

1%, earnings per share are 0.

15 yuan.

The overall performance of the company was slightly lower than our expectations, but the performance of condiments basically met our expectations.

Key points of support level 1Q19 Soy sauce income grew rapidly, and caramel color substitution affected the company’s 天津夜网 overall revenue growth.

In the first quarter of 19, the company’s revenue increased by 18 in ten years.

5%, slightly lower than our Air Force’s 20% + expectation, mainly due to the increase in caramel income in 1Q19, and income of 0.

4.1 billion, down 20% previously.

The revenue of condiments in the first quarter of 19 was basically in line with our expectation, soy sauce + vinegar realized revenue2.

200 million, an increase of 26%, of which soy sauce income grew rapidly, income 1.

700 million, an increase of 32%; vinegar income was 0.

4.5 billion, 8% more than the added value, exceeding our expectations, and look forward to further speedup.

The consolidated consolidated report includes regional revenue (condiment + caramel) and the addition of distributors. We judge that external regions and e-commerce channels are still the core driving force for the rapid growth of soy sauce revenue. In 1Q19, the company added 56 distributors, a net increase of 39.Of which, there were 17 in East China, a net increase of 13, and 20 in North China, a net increase of 19; among the consolidated statements by region, the income of East China was 0 in 1Q19.

4.5 billion, an increase of 35% previously, North China revenue 0.

2.6 billion, an increase of 103% in ten years.

The growth rate of non-net profit in the first quarter of 19 slightly exceeded our expectations. We judge that the decrease in profit was mainly due to the caramelized income and the upward change in the sales expense ratio of condiments.

1Q18 Asset disposal gains increase company’s pre-tax profit.

8.1 billion, after excluding, 1Q19 non-net profit increased by 19% per year, slightly lower than our gradual 25% expectation. We judge that mainly due to the gradual decrease in caramel revenue and the decrease in profit and the increase in the sales expense ratio of condiments, the company’s overall salesExpense rate 22.

7%, an increase of 4 per year.

0pct, 1Q18 base is expected to be relatively high, but another 22.
.

7% is higher than 21 in 2H18.

0%, which may increase the intensity of the increase in sales expenses due to regional development and channel policies.

Management expense ratio (including R & D) for the first quarter of 19 6.

5%, rising by 1 every year.

3%, but below 6 in 2018.

8%, so we judge that the magnitude of the deviation may increase due to base influence and quarterly changes.

The company’s overall gross margin in the first quarter of 19 reached 48.

3%, a significant increase of 4.

5pct, we judge that part of the overall gross profit margin has risen transiently due to the increase in caramel color revenue with a low gross profit margin, and partly due to the upgrade of the condiment product structure.

It is estimated that the company’s condiment performance in 1Q19 is basically in line with our expectations. The external area continues to expand, and the long-term profit forecast is temporarily maintained. The EPS for 2019-20 is expected to be 0.

66, 0.
80 yuan, a year ago decreased by 10%, an increase of 22%, of which non-net profit deducted increased by 29%, 24% for ten years, maintaining the level of increase.
The main risks facing ratings are the expansion of external regions, the cost of raw materials has risen sharply, and industry competition has intensified.