Tianwei Food (603317): 19Q2 performance growth accelerated faster than market expectations

Tianwei Food (603317): 19Q2 performance growth accelerated faster than market expectations

Tianwei Food 19H1 achieved income 6.

2.9 billion (+32.

10%), net profit 1.

3.0 billion (+40.

85%) Tianwei Food announced its semi-annual report on August 4, 2019, and the company achieved revenue in 2019H16.

29 ppm, a 10-year increase3.

10%, realizing net profit attributable to mother 1.

30,000 yuan, an increase of 40 in ten years.

85%, net profit after deduction is 0.

910,000 yuan, an increase of 41 in ten years.


19Q2 single quarter income 3.

24 ppm, a 39-year increase of 39.

43%, achieving net profit attributable to mother 0.

2.9 billion, an increase of 51 in ten years.


The company’s 19Q2 performance growth rate is higher than our expectations, so we raised our profit forecast. We expect Tianwei Food 2019?
EPS will reach 0 in 2021.

83 yuan, 1.

04 yuan and 1.

27 yuan, maintaining the “overweight” level.

The 都市夜网 growth of hotpot base business accelerated, driving the company’s 19Q2 revenue to exceed expectations. Tianwei Food Hotpot base business 19H1 achieved revenue2.

54 ppm, a ten-year increase of 17.

84%, of which 19Q2 achieved a single quarter revenue1.

2.4 billion, an increase of 33 in ten years.


The revenue growth rate of hot pot bottoms in 19Q2 was compared to 6 in 19Q1.

07% accelerated significantly, driving the company’s overall revenue growth beyond expectations.

We believe that the company has achieved rapid growth in its handmade butter hot pot since its launch in 2017, which proves its product power. At the same time, the revenue growth of the 19Q2 Dahongpao hot pot base also proved the growth potential of traditional products.The main beneficiaries of the increase.

In addition, Sichuan cuisine seasoning 19Q2 still continued the strong growth momentum of 19Q1, and in 19Q2, it achieved revenue1 in a single season.

71 ppm, an increase of 48 in ten years.


The expansion of the dealer network in 19Q2 accelerated significantly, helping the brand channel penetration rate increase to the end of the second quarter of 2019. The number of company dealers reached 882, an increase of 85 from the 797 at the end of the first quarter, an increase of 11%.

In the first quarter of 19th, the number of the company’s dealers decreased by 12; therefore, the dealer network expansion rate in the second quarter significantly accelerated quarter-on-quarter.

We believe that Tianwei Foods has a renewed brand power in the areas of Sichuan cuisine seasoning and hot pot base. The product terminals are relatively high, and the profit margins of dealers are relatively speaking, so the attraction for dealers has increased.

We believe that the expansion of Tianwei Food’s distributor network is continuous. With the expansion of channels, the penetration rate of the “Good People” and “Dahongpao” brands of the company will gradually increase.

We are optimistic about the prospects of Tianwei’s segmentation area and Tianwei’s competitive advantage. We maintain the rating of “overweight”. We believe that the compound seasoning industry has a good prospect. Tianwei has significant brand, product and channel advantages.
We raise our profit forecast and expect 2019?
Revenue will reach 18 in 2021.

3.9 billion (up 4%), 22.
8.7 billion (up 5%) and 28.

07% (up 6%), an increase of 30%.

19%, 24.

36% and 22.


EPS will reach 0.

83 yuan (up 4%), 1.

04 yuan (up 5%) and 1.

27 yuan (up 5%), an increase of 28 each year.

42%, 25.

82% and 21.


Comparable companies have an average valuation of 45 times PE in 2019, considering Tianwei 2019?
The compound growth rate of net profit in 2021 is 25% higher than the industry average of 19%. We give it 19%?
20% premium, corresponding to 53 in 2019.


00 times PE, with a target price range of 44.


82 yuan, maintaining the “overweight” level.

Risk warning: channel development is not up to expectations; competition is intensified; food safety.