Haitian Flavor (603288): Revenue growth remains stable, net interest rate hits new record high

Haitian Flavor (603288): Revenue growth remains stable, net interest rate hits new record high

Event: Haitian Flavor released its 2019 Interim Report, and achieved operating income of 101 in 2019H1.

60 trillion, ten years +16.

51%; realized net profit of 27.

51 ppm, +22 for ten years.

35%; operating income of 46 in the second quarter of 2019.

7 billion, previously +16.

00%; realized net profit of 12.

74 ppm, +21 for ten years.


Revenue growth remained stable, and adjustments to sauce products improved significantly.

2019H1 revenue growth rate of 16.

51%, of which Q2 is 16.

00% compared to the first quarter of 16.

95% small amplitude 0.


The advance payment for 2019H1 is 12.

80 ppm, an increase of 41 per year.

12%, considering the channel status and inventory are reasonable, the company’s delivery rhythm is stable, and Q2 single season interest rate is not 南宁桑拿 scary.

In terms of products, the three core products of 2019H1, soy sauce / soy sauce / oyster sauce, increased by +13 respectively.

61% / 21.

13% / 7.

48%, compared with the annual growth rate of -2 in 2018.

24 / -4.


93 items, of which the adjustment effect of sauce products was obvious. Among them, sauces achieved a growth rate of 6% in the first quarter of 2019. Through a series of adjustment plans such as channels, product announcements, product specifications, and quality, it is estimated thatImprovement is expected to continue.
The decline in expense ratios has continued to increase the net interest rate.

2019H1 company net profit is 27.

08% for one year.

29pcts; of which the net interest rate for 2019Q2 is 27.

28%, ten years +1.

31 cases, single quarter profitability has improved.

(1) Gross profit margin for sales in H1 201944.

86% every year -2.

25pcts, of which 2019Q2 sales gross margin was 43.

78% per year -3.


The Sino-U.S. Trade friction has caused the company’s soybean purchase price to increase by nearly 10% as a major factor in the decline in gross profit margin.

In addition, the capital expansion entry cost brought by technological transformation has dragged down gross margin performance. The capital expansion of technological transformation is expected to be 700 million yuan.2) The sales expense ratio / administrative expenses (including R & D) ratio of 2019H1 are 11 respectively.

00% / 3.

97% -2 per year.

49 / -0.

19pcts; of which the sales expense ratio of 2019Q2 is 4.

57% a year -1.


The decrease in sales expense ratio was mainly due to the company’s separation of freight from a small amount of products at the beginning of this year. Some distributors adopted a self-collection method to reduce the company’s transportation costs. In addition, the release of the Jiangsu factory ‘s production capacity and expansion of the company ‘s sales scale reduced the sales costspositive effects.

In an operating environment where overall demand continues to be weak and costs are rising, the company has once again demonstrated its ability to traverse cycles through active marketing changes and excellent cost management capabilities.

The cost side continues to rise or start a new round of price increase cycle. The company aims to achieve the goal successfully.

In the long term, deep channel cultivation and category expansion will continue to promote the company’s transformation into a condiment platform company.

Profit forecast and investment rating.

We maintain the company’s EPS forecast for 2019-21 to 1.



75 yuan, the current sustainable corresponding PE is 51/43 / 36X, maintain the “Buy” rating.

Risk reminder: food safety issues, macroeconomic growth, category expansion is less than expected.