Fuling mustard (002507): Costs and expenses in the income adjustment period fell and overlapping performance increased

Fuling mustard (002507): Costs and expenses in the income adjustment period fell and overlapping performance increased

Investment Highlights: Event: On April 19, Fuling mustard released the first quarter report.

Realized operating income in the first quarter of 20195.

27 ppm, a 10-year increase3.

81%, net profit attributable to mother 1.

55 ppm, an increase of 35 in ten years.

15%.

High-base additive distributors prepared in advance in 18Q4, and revenue in 19Q1 increased slightly.

Due to the sharp increase in revenue in 18Q1 and the expansion of the revenue base, the continuous 武汉夜网论坛 growth rate of revenue in 19Q1 has improved.

At the same time, at the end of October 18, the company raised the price of its 7 pressed menu products by 10%, and the downstream distributors’ stocking in advance also put pressure on the growth rate of the first quarter.

As dealers’ inventory is consumed and consumption rises, the additional price increase effect is released, and revenue growth is expected to gradually pick up.

The price of green heads continued to increase and the company’s raw material storage capacity continued to increase, and its gross profit continued to rise.

The company’s gross profit margin was as high as 58 in 19Q1.

14%, an increase of 6 per year.

The sharp increase in gross profit margin at 94pct was due to the decline in the price of cabbage head.

According to the information from the Fuling mustard office notice, the purchase price 北京夜网 of green cabbage heads in Fuling area in 18Q1 was in the range of 800-1000 yuan / ton, and the average purchase price of green cabbage heads in 19Q1 was in the range of 700-800 yuan / ton.The decline of the purchase price promoted the company’s gross profit in 19Q1; the reorganization, the company currently owns 20.

50,000 cubic meters of raw material storage capacity, to a certain extent, smooth cost non-linearity.

The company’s 19Q1 inventory increased by 38 at the beginning of the period.

81%, mainly due to the increase in the purchase of raw materials, has now prepared more low-priced green cabbage.

The company’s inventory turnover days in the past three years are about 108 days, and the previous months were still consuming last year’s inventory. At present, low-priced inventory gradually supports the company’s production to Q3. It is expected that the company’s gradual gross profit will benefit from the price reduction of raw materials and gradually increase.

Three fees fell, hedge investment income decreased, and net profit increased steadily.

The company’s 19Q1 net margin increased by 6.

84pct to 29.

48%, mainly due to the increase in wool interest rate and the decline in the three fees, while investment income exceeding the reduction will put pressure on the increase in net profit.

1Q19 sales / management / financial expense ratios were 20 respectively.

11% / 2.

83% /-0.

17%, a decline of 2 per year.

96 points / 0.

28 points / 0.

12pct, three fee drop offers 3.

36% net margin growth space.

However, due to the decline in bank wealth management product income in Q1, the net investment income was only 3.38 million yuan, which was much lower than the 12.99 million yuan in the same period last year, which reduced the increase in net interest rate to a certain extent.

The company’s other current assets increased by nearly 6 in Q1.

US $ 600 million is mainly used to purchase banking wealth management products. It is expected that long-term investment income will gradually rise and net interest rate growth will further increase.

The scale continued to expand, credit lines were relaxed, receivables increased, and advance receipts declined.

In recent years, the company’s revenue and asset scale have continued to rise, and the requirements for operating capacity have become higher and higher.

19Q1 company receivable turnover implantation 21.

1, compared with the same period last year decreased by 10.54. The growth rate of turnover rate was mainly due to the increase in accounts receivable.

In order to strengthen the sales of new products, the company’s credit limit for some customers was improved and relaxed. In 19Q1, the company’s accounts receivable was about 42.05 million yuan, an increase of 434 from the beginning of the period.

99%.

As a result of the relaxation of credit lines, advance receipts and opening figures decreased by 37.

03%, the account received in advance in 19Q1 was about 97.88 million yuan.

Earnings forecast and rating: It is expected that the company’s revenue in 19-21 will reach 22 respectively.

93/27.

66/32.

62 ppm, an increase of 19 years.

76% / 20.

66% / 17.

91%, net profit achieved 8 respectively.

25/10.

09/12.

200 million, an annual increase of 24.

63% / 22.

37% / 20.

88%, despite the continued steady increase in cost performance, but considering the company’s price increase cycle and the decline in channel penetration speed, the “Dawujiang” category layout still takes time, and then downgraded to “Recommended” rating.

Risk warnings: 1. The prices of upstream raw materials fluctuate greatly; 2. The downstream demand is less than expected.