Guangzhou Restaurant (603043): H1’s Fast-growing Brand Acquisitions Boost Food Industry
On August 27th, the company released its semi-annual report for 2019 and achieved 南京夜网论坛 revenue of 9 in the first half of the year.
51 ppm, an increase of 20 in ten years.
22%, net profit attributable to mother was 6430.
100,000 yuan, an increase of 10 in ten years.
A brief review of the revenue maintained a steady growth rate, and the improvement in operating cash flow was evident in the first half of the year.
51 ppm, an increase of 20 in ten years.
22%, an increase over the same period last year.
Among them, the food manufacturing business achieved revenue5.
90 ppm, an increase of 23 in ten years.
40%, has become the main driver of rapid revenue growth.
Revenue from catering service business 3.
37 ppm, an increase of 14 in ten years.
The company’s net profit attributable to its mother was 6430 in the first half of the year.
10,000 yuan, an increase of 10 in ten years.
19%, net profit after deducting non-attribution to mothers fell by 4 per year.
98%, mainly because the amount of non-recurring gains and losses in the first half of 2019 reached 1,300.
450,000 yuan, an increase of 197 over the same period last year.
54%, mainly due to the impact of changes in accounting estimates and the increase in the amount of non-recurring profit and loss items brought by investment income from wealth management products.
Looking at expenses, the selling expense ratio was 27 in the first half of the year.
58%, down by 1 every year.
24pct, management expense rate 11.
64%, an increase of about 1 a year.
27pct, in terms of financial expenses, interest income increased slightly, and the expense side remained stable overall.
The company’s gross profit margin reached 47 in the first half of the year.
78%, an increase of about 0 a year.
04pct, generally stable.
Operating cash flow increased by at least 34 during the reporting period.
42%, a marked improvement.
Maintaining the “food + catering” two-wheel drive, the new production capacity has steadily entered the cash-in period. The company’s food business has grown rapidly. In the first half of the year, the average income of the bacon, quick-frozen food and moon cake business achieved a good growth, with a revenue of 3421.
190,000 yuan, an increase of 107 in ten years.
99%, quick-frozen food realized revenue 2.
600,000 yuan, an annual increase of 22.
77%, other food revenues3.
30,000 yuan, an increase of 17 years.
63%.Food business revenue accounted for 63.
87%, an increase of about 1 a year.
76pct, the driving force of the food business is enhanced.
From the perspective of sales model, distribution accounted for 43.
68%, an increase of about 0 every year.
Geographically, Guangdong ‘s foreign revenue accounted for 9%.
73pct), overseas accounted for 1.
(29 points); The major companies reported that they actively promoted the construction of the Xiangtan and Meizhou bases. The company announced in August that the construction of the first phase of the Xiangtan project will be completed and will be gradually put into operation.
In total, the company’s construction-in-progress surplus increased by 138.
04%, it is also the production base of Xiangtan, the renovation of Likoufu workshop and the increase of catering projects.
At the same time, the balance of prepayments increased by 56.
69%, inventory surplus increased by 42.
79%, the balance of the budget received in advance increased by 302.
32%, mainly for advance payment for moon cakes.
The company’s food business technology research and development capabilities, sales channels, and downstream demand have been fully verified by the market. With greater production capacity, it is expected that more production capacity will bring stable downstream demand increase, and the progress of construction projects will gradually increase production capacity.The release will bring the realization of high income growth.
The acquisition of Tao Taoju has expanded its business layout and helped the main food companies to take an active role in M & A investment. In July, it announced the acquisition of 100% equity of Guangzhou Tao Taoju held by Guangzhou State-owned Assets Development Holdings Co., Ltd., and merged the old local restaurant brand in Guangzhou.
Tao Taoju also has rich moon cake business, which will complement the company’s key moon cake business.
At the same time, the company actively established joint ventures with upstream and downstream suppliers to further strengthen supply chain control.
The company has further enriched its brand and product matrix through mergers and acquisitions and other means. Combined with the expectation that the capacity built in the next two years will gradually be released and the peak season of the moon cake in the second half of the year, the company is expected to continue to expand its performance space in the second half of the year.
Investment suggestion: In the first half of the year, the company’s revenue will maintain a rapid growth rate, and its expenses will be stable. The “food + catering” two-wheel drive has a remarkable performance and outstanding innovation ability.
The acquisition 杭州桑拿 of Tao Taoju and the utilization of brand and business synergies through investment and mergers and other means. We are optimistic about the company’s expected additional production capacity. The release of production capacity in the second half of the moon cake season will make a stable contribution to performance.
The EPS for 2019-2021 is expected to be 1.
48 yuan, the current expected PE is 31X, 26X, 23X, maintaining the “overweight” level.
Risk reminders: The construction of production bases is not up to expectations; new product cultivation is less than expected; food safety issues; and channel expansion is less than expected.