Guangzhou Restaurant (603043): Mooncake Revenue Steady Increase and Normal Products Perform Brightly
Event: On October 29, Guangzhou Restaurant released the third quarter report of 2019, and the company achieved operating income of 24 in the first three quarters.
$ 1.9 billion / increase of 19.
6%, attributable net profit 3.
25 ‰ / increase by 9.
12%, after deducting non-attribution net profit 3.
11 ppm / increase of 7.
88%, budget benefit 0.
80 yuan / increase 9.
Among them, Q3 achieved operating income of 14.
57 ‰ / increase by 19成都桑拿网 .
19%, attributable net profit 2.
61 ppm / increase of 8.
86%, after deducting non-attribution net profit 2.
59 ‰ / increase of 10.
Comments: 1. The company’s revenue has continued to expand, and its costs have increased resulting in increased performance.
Q3 company revenue increased by 19.
6%, of which food business income increased by 20.
4%, catering business income increased by 12.
4%; deducting non-net profit increased by 10.
9%, profit growth rate is slower than income growth rate, mainly due to slight changes in gross profit margin and management expenses increased.
2. Mooncake income has steadily increased, and the performance of normal products has been dazzling.
In Q3 2019, the company’s food manufacturing business realized revenue12.
9 trillion / growth 20.
4%, of which 10 moon cake income.
3 ‰ / increase by 14.
9%, it is expected that the sales of moon cakes will increase and replace the core product Shuanghuanglianrong5.
7%, Qixing accompanied by a monthly price increase of 13.
2%; quick-freezing business 1.
$ 3.9 billion / 51 increase.
1%. Wafers and other products earn 1.
19 ppm / 45 increase.
7%, an increase from the first half of the first half of the year, mainly due to the transformation of the foundation, the acquisition of Liangfeng Park and Delifeng, production and sales increased.
3. The orderly expansion of catering stores has accelerated revenue growth.
The catering business of the company in Q3 2019 achieved revenue1.
62 ppm / increase of 12.
4%, mainly due to the newly opened Guangzhou Baiyun Airport and Tianzi Pier Store in 2018.In June 2019, Guangzhou Restaurant opened in Liwan District. The Shenzhen store is scheduled to open in the second half of the year, which will gradually contribute to its performance.
4. The two-pronged approach of distribution and direct sales has accelerated the growth of businesses outside the province.
2019Q3 company direct sales revenue5.
67 ppm / increase of 13.
7%, distribution income 8.
82 ‰ / increase by 23.
4%, as of the end of September, the company has 656 dealers, an increase of 143 in the first three quarters.
The effect of the company’s Internet marketing construction gradually appeared, increasing the sales coverage in East China and Central China, Q3 revenue in Guangdong Province10.
5 ‰ / increase by 12.
1%, domestic income outside Guangdong Province3.
9.3 billion / increase 43.
6%, rapid growth in business outside the province.
5. Gross profit margin contracted and management R & D expenses increased significantly.
Q3 company gross profit margin 58.
6% / down 0.
96; sales expense ratio 25.
5% / down 0.
92pct; management expense ratio (excluding R & D) 8.
4% / up 1.
1 point mainly comes from: 1) the increase of the employee housing provident fund deposit ratio; 2) accrual of distribution and incentive costs.
The company’s R & D expenses were 21.45 million yuan, an increase of 7.04 million yuan over the same period of the previous year, mainly because the company increased its cooperation with third-party institutions such as universities and scientific research, and increased the development and promotion of new products.
6. Guangzhou Restaurant launched an investment management company and established an industrial investment fund.
On September 27, Guangzhou Restaurant announced the “Cooperation Framework Agreement” with Qianhang Shanglian, Feast Investment, Venture Capital Asset Management and Reorganization, and co-sponsored the establishment of Guangdong Fuyan Investment Management Co., Ltd., in which the company subscribed for 3 million yuan and heldManagement company 30% equity.
At the same time, the company has signed the “Guangdong Fuyan Industrial Investment Partnership (Limited Partnership) Limited Partnership Agreement” with Qianxing Shengtai and Qianxing Capital of Foshan. The company will subscribe as a limited partner to contribute 60 million yuan / 30% of the partnershipShares and investment funds will focus on food, catering industry related and strategic emerging industries that are in line with the company’s strategic planning goals.
7. Investment suggestion: The company’s revenue growth rate is in line with expectations, normal products are developing rapidly, and net profit is slightly replaced by the growth rate of cost.
In 2020, the Xiangtan project will be put into use in succession to expand the capacity of moon cakes and fillings. The Meizhou project will be completed next year. By then, the capacity of quick freezing and wax flavor will be released. As a result, the company will actively improve online and offline channels and promote the accelerated opening of non-Guangzhou and GuangdongAs a regional leader, the market outside the province has a broad space for future growth.
We expect the company to return its net profit to its mother in 19-21.
3 ‰, a year 杭州桑拿网increase of 16% / 21% / 17%, corresponding to PE of 28x / 23x / 20x, maintaining the “strongly recommended -A” investment rating.
8. Risk warning: economic consumption is down; food safety; regional market risks; capacity expansion is not up to expectations.