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Zhongju Hi-tech (600872) 2019 Third Quarterly Report Review: Gradually into the good future can be expected

Zhongju Hi-tech (600872) 2019 Third Quarterly Report Review: Gradually into the good future can be expected

Event: Zhongju High-tech released the third quarter report of 2019, and achieved operating income of 35 in the first three quarters.

31 ppm, +11 a year.

57%; net profit achieved 6.

00 ppm, +11 a year.

39%; 2019Q3 realized operating income11.

3.8 billion, ten years +14.

93%; realized net profit1.

940 thousand yuan, ten years +18.

56%.

The main condiment business continued to grow steadily, and the number of dealers broke through.

(1) Cumulative Fresh Company’s 2019Q1-Q3 cumulative operating income of 33.

57 trillion, ten years +14.

97%.

Both Q2 / Q3 achieved operating income of 10.

95 trillion, ten years +15.

26% / + 14.

30%.

In the first three quarters 成都桑拿网 of the year, Zhonghui Hechuang / Zhongju Seiko realized operating income of 79.49 / 6679 million yuan, +71 for the whole year.

37% /-2.

89%.

(2) Soy sauce / chicken powder / edible oil 2019Q1-Q3 Gradually revenue +10 for ten years.

85% / 19.

20% / 33.

27%, Q3 soy sauce / chicken powder powder / edible oil single quarter revenue of +8 respectively.

56% / 18.

94% / 42.

23%, -2 higher than the growth rate of Q2.

31 / + 5.

16 / -3.

50.

(3) The number of dealers of the company in Q1 to Q3 2019 increased to 1,009, which was a continuous increase from the 975 reported in the first half of the year.

By region, East / South / Central / Western / Northern 2019Q3 revenue twice +11.

55% / 13.

04% / 28.

78% / 13.

74%, which is +0 higher than the growth rate of the previous Q2.

07/0.

56/5.60 / -8.

53%.

杭州桑拿网 Although the gross profit margin has improved, the increase in investment income has led to a stable net profit margin.

2019Q1-Q3 delicious fresh company net profit is 17.

66%, ten years +0.

40pcts; of which the net interest rate for 2019Q3 is 17.

72%, previous / Qo-0.

03 pieces / +0.

18, profitability continued to remain stable.

(1) 2019Q1-Q3 delicious fresh gross profit margin 39.

01%, Decade -0.

17pcts, of which the gross profit margin for sales in Q3 2019 was 37.

78%, Q2 Q2.

51.

The decline in gross profit margin in the third and third quarters was mainly affected by three factors. First, changes in product structure. Q3 soy sauce / edible oil (gross margin is low) revenue ratios were -4.

8 / + 6.

07 pcts; Secondly, the prices of raw materials such as monosodium glutamate increased slightly; Thirdly, the company accelerated the market expansion by way of price reduction and other promotional methods. (2) The sales expense ratio / management expenses (including R & D) ratio of Q1 to Q3 in 2019 were 10 respectively.

1% / 7.

90% every year -0.

21 / + 0.

09pcts, basically stable.

(3) In the third quarter, the company realized investment income of 12.18 million yuan, including 8.61 million government subsidies.

Both internally and externally, the future can be expected.

Internally, we will increase incentives for managers and business backbones to fully release the enthusiasm of grassroots employees.

Externally, the speed of channel layout was accelerated, and dealer expansion targets were reached ahead of schedule during the year.

With the release of the company’s future production capacity, the improvement of catering channel sharing is also worth looking forward to.

Profit forecast and investment rating.

We maintain the company’s EPS forecast for 2019-21 to 0.

89/1.

10/1.

29 yuan, the current sustainable corresponding PE is 49/40 / 34X, maintain “Buy” rating.

Risk reminder: food safety issues, macroeconomic growth, category expansion is less than expected.