Juewei Food (603517): Revenue continues to increase rapidly and profit steadily rises

Juewei Food (603517): Revenue continues to increase rapidly and profit steadily rises
Event: On October 23, the company disclosed three quarterly reports with a total operating income of 38.8.6 billion, previously +18.98%, net profit attributable to mother 6.1.4 billion, previously +26.06%, net profit after deduction 592 ppm, +24 a year.71%; core point of view: 1, the third quarter continued the rapid growth trend in the first half of the year, and gradually opened stores as planned: Q3 revenue13.9.6 billion, ten years +18.2%, which is comparable to the growth rate in the first half of the year, with stable performance.In the first half of the year, the number of company stores reached 10,598. It is estimated that 683 were added at the end of last year.In the third quarter, there is a budget for the growth rate of store openings. The rapid growth of revenue is expected to be related to the rapid growth of single store revenue and the reduction in substitution.From the perspective of category and regional development, the growth of vegetable products in the third quarter was relatively rapid, and the share of South China increased faster than the previous month.In addition, the company’s net operating cash flow declined slightly in the third and third quarters, which is a restructuring change, which is expected to be related to the change in the periodic purchase of raw materials. 2. The optimization of management expenses, the pressure on the cost side decreased slightly, and the profit was steadily increased: the company’s net profit attributable to the mother in the third and third quarters2.180,000 yuan, +26 a year.5%, deducting non-net profit 2.30,000 yuan, +23 a year.7%, continuing to grow faster than revenue.Among them, Q3 single quarter net profit margin increased by 0.99pct, gross margin increased by 1.6pct, this is mainly because the second and third quarter of last year was the high point of raw material prices, and this year has gradually improved; at the same time, the sales expense ratio and financial expense ratio increased by 1.One, zero 55pct, related to the increase in market input and convertible bond issuance, and the management expense ratio decreased by zero.79 points. 3. Under the long-term optimistic view of the steady growth of Duck Neck’s main business, the supply chain optimization and the development of new categories will open up more room for growth: In the next few years, the company will continue to maintain a steady growth rate of store openings, expand overseas markets, and 重庆耍耍网 promote the upgrade and development of fourth-generation stores.In addition, the company is also actively deploying new businesses to build a healthy gourmet ecosystem.The first is to expand the product category. The pepper pepper flavored stores are being tested and gradually increased in the future. The second is to rely on the supply chain capabilities of “cold chain fresh, daily distribution to the store”, and strong pipeline management and control capabilities, and gradually open to the open type.The development of foreign services has begun to generate positive returns and will provide greater flexibility in the future. 4. Profit forecast and estimation: Without considering extension, the company’s EPS in 19-21 is expected to be 1.37/1.66/1.99 yuan, corresponding PE is 32/27/22 times, maintaining the “strongly recommended” level. 5. Risk warning: food safety issues, fluctuations in raw material prices, bird flu incidents, store openings are less than expected, etc.