Haitian Flavor (603288) Company Express: Performance Meets Expectations Soy Sauce Leads Steady Growth

Haitian Flavor (603288) Company Express: Performance Meets Expectations Soy Sauce Leads Steady Growth

Event: The company released its semi-annual report for 2019, and the company’s revenue in 2019H1 was 101.

6 billion, same as +16.

51%; net profit attributable to mothers27.

500,000 yuan, the same as +22.

34%; net profit attributable to non-attributed mothers was realized26.

One million yuan, the same as +20.


Among them, 2019Q2 achieved revenue of 46.

7 billion, 北京夜网 same as +16.

00%; net profit attributable to mother is 12.

73 ppm, +21 a year.

82% of investment key points reported results in line with expectations, with steady revenue growth.

2019H1 company achieved operating income of 101.

6 billion, same as +16.

51%, achieving net profit attributable to mothers27.

500,000 yuan, the same as +22.

34%; the company’s goal for 2019 is to achieve a total operating income of 197.

600 million, profit target 52.

38 trillion, 51 in the first half of the long-term goal.


In the second quarter alone, the company’s revenue was 46.

7 billion, same as +16.

00%; net profit to mother 12.

7.3 billion, same as +21.


In terms of products, soy sauce income increased by 13.

61%, oyster sauce increased by 21.

13%, the sauce increased by 7.

48%; soy sauce and oyster sauce continue to grow at a high speed, and the operation of sauces continues to improve.

Relatively considering that Q1 benefits from the Spring Festival, the growth data of Q2 can further verify the trend of good sales.

The company’s H1 advance account is 12.

79 trillion, it is estimated that the initial decline is 60.

47%, mainly due to the Spring Festival dealers’ advance preparation and payment increase, an increase of 41 in the past year.

12%, reflecting the company’s right to speak alternatives.

In the first half of the year, the release rhythm was stable, and channel inventory remained healthy.

Net margin continued to increase, and profitability was outstanding.

The report initially achieved gross profit margins of 44.

86%, a decrease of 2 per year.25pct, mainly because of 19 years of technological transformation of production capacity and rising prices of some raw materials have increased costs.

But achieved a net interest rate of 27.

08%, an increase of 1 per year.

29pct, mainly reflected in the decline in the company’s expense ratio.

Selling expenses during the reporting period9.

78%, a decrease of 4 per year.

1pct, because some dealers realized self-collection of goods, reducing related freight costs; although the number of managers and salary levels increased, management costs increased by 5.

34%, but thanks to the steady growth in sales, the management expense ratio has dropped by 0 every year.


The high-quality leader continues to lead, and the company’s logic is determined.

The possibility of an overall price increase this year is small, and the company’s main performance has continued to increase and the product structure has increased and scaled up.

The company’s high-end, low-end product line is complete, with 5 billion-level large single products, multiple billion-level single products, soy sauce / oyster sauce / seasoning sauce contributed about 90% of the company’s growth.This year also returned to a high number of growth.

Although the social demand has not accelerated, it has benefited from the company’s continued increase in channel sinking + product upgrades of existing large single products + development and R & D expansion. The long-term logic of exploring new categories has a high degree of certainty for steady growth, and the performance space will be continuously opened.

Investment advice: The condiment industry is a highly profitable and defensive industry. The company is a leading company in condiments. 2019 is the year when the company ‘s “three five” plan begins. In corporate management, sales channels, product technology,The competitive advantages of the four major aspects of brand influence continue to increase; the transformation of the industry is concentrated, and the company will continue to lead the way!

We expect the company’s EPS for 2019-2021 to be 1.



79 yuan, net asset income increased by 33.

1% / 34.

2% / 35.

7%, giving an Overweight-A rating.

Risk Warning: Condiment business does not meet expected risks, channel expansion is less than expected, risks of raw material price fluctuations, food safety issues