rubyslotsnodeposit| Tianfeng Securities: Condiment performance grows steadily, dividend rate increases, incentive plan demonstrates confidence

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Zhitong Financial APP learned that Tianfeng Securities released a research report that, as a whole, condiment companies have a smooth transition for 23 years, and 24Q1 condiment companies have basically made a good start. At the beginning of 24 years, condiment companies actively launched equity incentive plans, which significantly boosted market confidence. From the perspective of valuation, the seasoning sector has a PE of 2 in 5 / 10 years.Rubyslotsnodeposit.65% / 1.57% Universe 0.98% quantile. The bank believes that companies with strong reform expectations and channel / customer expansion capabilities may have structural opportunities in the context of low valuations.

The views of Tianfeng Securities are as follows:

Steady growth in revenue and marked improvement in profits

Performance: steady growth in income and obvious improvement in profits. In 2023, the revenue of the condiment industry and the net profit of returning home were 626.02 / 10.971 billion yuan respectively, an increase of 2.15% and 21.48% respectively over the same period last year. The revenue and net profit of 2024Q1 condiment industry were 179.42 yuan and 3.336 billion yuan respectively, an increase of 7.33% and 10.87% respectively over the same period last year.

Cost: the control of fees is good, and the rate of 24Q1 sales expenses is basically the same as the same period last year.

In 2023, the sales expense rate, management expense rate and sales expense rate of the condiment industry are 7.95%, 3.71% and 1.22%, respectively, compared with the same period last year + 0.06/+0.41/+0.24pct. The sales expense rate / management expense rate / financial expense rate of the 2024Q1 condiment industry is 7.75%, 3.18%, 0.77%, respectively, compared with the same period last year + 0.09/-0.02/+0.07pct.

Profitability: cost factor disturbance, 24Q1 profit margin improvement.

In 2023, the gross profit margin and net profit margin of the condiment industry were 31.96% and 17.70% respectively, compared with the same period last year-0.50/+2.85pct. The gross profit margin and net profit margin of the 2024Q1 condiment industry are 34.73% and 18.87%, respectively, compared with the same period last year + 0.70/+0.66pct.

Demand recovery superimposed cost reduction brings profit elasticity, dividend rate & incentive plan shows confidence

1) the cumulative income of 2024Q1 nationwide is 1.34 trillion yuan, which is higher than that of the same period in 2023 and 2019 compared with the same period in 2023 and 2019. Judging from the catering revenue data, the recovery is significant, and we believe that with the continued recovery of catering, the demand of the condiment industry is expected to grow.

2) for the whole of 24 years, the price of raw materials as a whole is expected to be lower than that in 2023, and profit elasticity is expected to be released.

rubyslotsnodeposit| Tianfeng Securities: Condiment performance grows steadily, dividend rate increases, incentive plan demonstrates confidence

3) at the beginning of 2024, some condiment companies launched stock incentive plans / employee stock ownership plans. Incentive programs have been launched in the industry to demonstrate the company's confidence in performance growth, but also greatly encourage employees and motivate people.

4) the 23-year dividend rate of major condiment enterprises has increased, boosting market sentiment. The dividend rate of major condiment enterprises increased significantly in 2023. 12 of the 15 condiment enterprises announced dividends, of which 10 enterprises increased their dividend rate for 23 years.

Investment advice:

Looking at the condiment enterprises as a whole, 23 years of smooth transition, 24Q1 condiment enterprises basically ushered in a good start. At the beginning of 24 years, condiment companies actively launched equity incentive plans, which significantly boosted market confidence. From the valuation level, the condiment sector 3x5 / 10 PE is at 2.65% Universe 1.57% Placement 0.98% quartile. We believe that there may be structural opportunities for companies with strong reform expectations and channel / customer expansion capabilities in the context of low valuations. We suggest that we should pay attention to two main lines: 1) maybe enjoy the reform dividend: Zhongju high-techRubyslotsnodeposit2) polyphonic track: Tianwei food. At the same time, it is suggested to pay attention to: Haitian flavor industry / Qianhe flavor industry / Fuling mustard and so on.

Risk Tips:

Industry prosperity decline risk; raw material price fluctuation risk; industry competition intensification risk; market risk; food safety risk and so on.

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