Shuanghui Development (000895)： Costs passed on lagging performance exceeded expectations
Shuanghui Development (000895): Costs passed on lagging performance exceeded expectations
This report reads: The upward pressure on pig prices brings cost pressure, the company’s cost transfer is relatively lagging, and performance is gradually expected by the market.
The concentration of beneficiary industries has increased, and the company’s slaughtering has facilitated heavy volume growth.
The meat 都市夜网 products sector is expected to resume growth under the “steady high, upper low” strategy.
Investment points: Investment advice: The company is a leader in the meat products industry.
The slaughter industry has a low concentration, and the strengthening of small-capacity rectification in African swine fever countries has benefited the company’s slaughter business.
The meat product segment is expected to maintain stable high temperature meat products and low temperatures, and Chinese style is expected to achieve breakthrough growth.
Maintain forecast EPS1 for 2019-2021.
90 yuan, maintaining a target price of 31.
34 yuan, corresponding to the 20X PE in 2019, increasing the level of holdings.
Performance was lower than market expectations.
2019H2 company realized revenue of 254.
500 million, 深圳桑拿网 net profit attributable to mother 23.
800 million, an annual increase of 7.
16%, single Q2 income 134.
800 million, net profit attributable to mother 1.1 billion, an annual increase of 15.
Cost pressure from rising pig prices, slaughtering, and operating profit of meat products are overlapping.
In the 2019 H1 slaughter, the meat products segment achieved revenues of 15 billion and 11.9 billion, of which Q2 revenue was 80 billion and 60 billion, an increase of 16%.
However, due to the rise in pig prices, the company’s cost transfer is relatively lagging, Q2 slaughtering, meat products operating profit10.
4 billion, 21.
600 million, down 13 each year.
2%, operating profit margins have fallen by about 5pct.
The sales expense ratio, management expense ratio, and taxes and additional income accounted for a steady decline of 0.
Attributable net interest rate 8.
2% downgraded by 3 per week.
H1 revenue matches sales receipts, Q2 sales receipts, and net operating cash flow increases.
6%. The growth of high-temperature meat products is weak, and the low-temperature strategy remains to be broken.
H1 high temperature meat products 76.
600 million, low-temperature meat products 42.
4 billion, a 10-year increase of 6% and 1%.
In the meat products business of the company, the high-temperature growth is weak, and the low-temperature, Chinese products have not yet broken the situation.The strategic situation is broken, and new markets for Chinese products are also expected to accelerate development.
Risk Warning: Food Safety Risk, Raw Material Price Rise Risk, Increased Competition Risk