Anjing Food (603345) Quarterly Report Review 2019: Adversity Fang Xian’s Leader Makes Great Efforts to Cater to Open Long-term Space

Facing the cost pressure of the industry in 2019Q1, the company focused on expanding the catering channel, achieved outstanding profit control, and achieved better-than-expected performance growth.

In the future, the company is expected to give full play to the advantages of production / channel / cold chain distribution, grab the development bonus of the catering industry chain, and open up the company’s development space.

Maintain “Buy” rating.

Performance review: 2019Q1 revenue / net profit increased by 14.

6% / 19.


In Q1 2019, the company achieved revenue of 10.

9.6 billion, an increase of 14.

6%, net profit attributable to the mother was 64.87 million yuan, an increase of 19%.

6%, deducting non-net profit of 59.71 million yuan, an increase of 23.


In terms of different channels, the distribution channel realized revenue8.

3.9 billion, an increase of 10.

9%, dealers net increase of 2 to 620 from the beginning of the period, the supermarket / special channels to achieve revenue2.

2.7 billion / 0.

2.6 billion, an increase of 25.

1% / 40.


By region, East China, North China, South China, Northeast China, Central China, Southwest China, and Northwest China achieved 6 respectively.

2.8 billion / 1.

14 billion / 1.

05 billion / 0.

8.7 billion / 0.

8.2 billion / 0.

6.2 billion / 0.

1.8 billion, the same increase of 16% / 33% / 3% / 9% / 12% / 4% / 12%.

Analysis of income: the catering industry chain has increased, rice noodles and reservations have increased rapidly, and meat products have been slightly affected by swine fever.

The company continuously promotes the expansion from quick-frozen hot pot products to the catering industry chain. In 2018, the company successively launched the three major pills of the catering channel, pastry products and the catering channel brand Mr. Frozen.

With the fermentation of swine fever, the company has accelerated the expansion of pastry products and catering channels, launched a number of new pastry products, and promoted them nationwide. Brown sugar buns / osmanthus cakes / walnut buns / sandbags have achieved good performance.

Benefiting from this, 2019Q1 rice noodle products achieved revenue3.

2 billion, an increase of 34.

4%, the initial product realized income of 90.78 million yuan, an increase of 22.


In addition, surimi products performed solidly and achieved revenue4.

1.1 billion, an increase of 16.

11%; income from meat products 2.

9 billion, down 4.

3%, mainly due to the swine fever affected company to fully clean and disinfect the production line, short-term suspension of pork products sales, after March the production line has resumed normal production, meat products resume the growth trend. Analysis of profit: short-term pressure on gross profit margin, continuous improvement in expense ratio led to high performance.

The company’s gross profit margin decreased by 0 in 2019Q1.

59PCT to 26.

36%, mainly due to ① the continued increase in pig prices and the company’s full use of imported pork to replace domestic pork since November 2018, leading to pressure transmission 西安夜网 of meat product costs; ② Q1 sterilization of some production lines and new testing equipment.

The sales expense ratio also decreased by 0.

84PCT, mainly because the cost of the headquarters is maximized and the costs of mature market materials are relatively stable; the financial expense ratio also increased by zero.

37PCT, mainly due to the increase in interest on short-term borrowings and convertible bonds; at the same time, the company’s R & D expense ratio decreased by zero.

32PCT, the management fee rate decreased slightly.


Overall leading 2019Q1 company’s net profit margin increased by 0.


The future: Proper cost control & long-term growth can be expected, and efforts to catering channels open up long-term space.

In 2019, the income-side company’s production capacity will be released steadily to ensure the steady expansion of revenue. It is expected that in the future, Sichuan Anjing will increase its production capacity 2 indicator, while the Taizhou / Liaoning plant will also be partially expanded. On the profit-side, the industry will have cost pressure due to the increase in pig prices.In terms of the company as a leader, it has the ability to raise prices, which can be appropriately controlled and adjusted during the pig price increase process. At the same time, the company’s surimi raw material reserves are sufficient (the last year’s Q4 reserve is expected to be available to 2019Q3), and the cost is basically locked, thereby making the company mature market expensesSaving and feasible company’s profitability has steadily improved.

In the long run, the company is expected to give full play to the advantages of production / channel / cold chain distribution in the catering industry chain, grab the development bonus of the catering industry chain, and open up the company’s development space.

Risk factors: less than expected channel expansion; sharp rise in raw material prices; food safety issues.

Investment suggestion: Considering that the company’s cost management is properly controlled, it exceeded expectations in the first quarter and raised its EPS forecast for 2019/20/21 to 1.



28 yuan (was 1).



11 yuan), maintain “Buy” rating.