Sanquan Foods (002216) 2019 Interim Report Review-Swine Fever Incident Resulting in Pressure on Catering Channels

Sanquan Foods (002216) 2019 Interim Report Review-Swine Fever Incident Resulting in Pressure on Catering Channels

Core point of view 2019H1 Affected by the incident and rising raw material prices, the company’s revenue and performance have been under certain pressure; at the same time, the company’s catering channels have developed rapidly, and its performance has more than doubled.

As a domestic leader in quick-frozen food, the company continues to promote product innovation and channel cultivation, and continues to focus on the company’s catering channel development and profit improvement.

2019H1 revenue / net profit is double -1 respectively.

15% / + 8.


2019H1 company achieved revenue of 30.

4.2 billion, down by 1.

15%, net profit attributable to the mother was 88.77 million yuan, an increase of 8.

01%, non-net profit of 74.42 million yuan, an increase of 8.


Of which Q2 income is 11.

3.4 billion, down by 10.

07%, net profit attributable to mother is 48.59 million yuan, down by 9%.


In the first half of the year, the company’s operating cash net decreased by 3.

1.5 billion, with a net increase of 480.

23%, mainly due to the increase in strategic reserves of leading companies in response to rising raw material prices.

  Classification: affected by the swine fever incident, the income of dumplings increased, and the dumplings & noodles performed well.

The reported dumpling business of the company was impacted by the swine fever hazard. Even the company actively adjusted its product structure and introduced products such as seafood dumplings and vegetarian dumplings. However, Q2 dumpling sales were still affected. In the first half of 2019, the company’s dumplings achieved revenue7.

5.6 billion, down 17.

59%, the proportion of revenue decreased 4 in the same period last year.

95PCTs to 24.


In addition, the 2019 H1 dumplings achieved revenue of 11.

1.9 billion, an increase of 1.

50%; noodles and other businesses benefit from the company’s catering channel development to achieve rapid growth, 2019H1 revenue 9.

1.1 billion, an increase of 8.

02%; the performance of Xunzi’s business is dazzling, and it will achieve revenue 2 in 2019H1.

4.9 billion, an increase of 18.


Sub-channel: Retail channel revenue is under pressure, and catering channels are growing rapidly.

In 2019H1, the company’s retail and other markets achieved revenue26.

7.7 billion, down by 5.

11%, revenue share decreased by 3.

67 to 88.

01%; Affected by rising pig prices, gross profit margins in the retail and other markets decreased by 1.

84Pcts to 34.

00%, net profit fell by 9.43% to 65.22 million yuan.

The company continues to deeply cultivate different scenarios of 杭州桑拿网 catering channels and strengthen product R & D and production. The catering channels continue to grow at a high speed, and it will achieve revenue in 2019H3.

6.5 billion, an increase of 42.

45%, the proportion of catering channel income increased to 11.

99%, 2019H1 contributed net profit of 23.56 million yuan, an increase of 130.


Analysis of income: The decline in yield and expense ratio offset the increase in gross profit margin, and the net profit margin increased slightly.

2019H1 gross profit margin 33.

21%, down by 1.

62 points, mainly due to the rapid increase in the price of pork raw materials in the first half of the year, affected by this, the gross profit margins of dumplings and dumplings in 2019H1 decreased by 4 respectively.



In terms of expense ratio, 2019H1 sales expense ratio 四川耍耍网 also decreased by 0.

37PCT to 26.

27%, of which the sales expense ratio fell by 1 in the second quarter.

8PCTs; the management expense rate also decreased by 0.

27PCT to 3.

11%; Affected by the increase in new product R & D investment, the R & D expense ratio also increased by 0.

15PCT to 0.

; Budget, affected by the decrease in deferred income tax assets, the company’s expenses fell by 74.

21%, the overall increase in the company’s net profit margin was 0.

25PCT to 2.


Risk factors.

Channel expansion was less than expected; rising raw material prices; food safety issues.

  Profit forecast and estimation.

Maintain 2019/2020/2021 EPS forecast to 0.



24 yuan, maintaining the “overweight” level.