Zhongju Hi-tech (600872) 2019 Interim Report Review: Steady Increase in Incentives for Main Business Profits

Zhongju Hi-tech (600872) 2019 Interim Report Review: Steady Increase in Incentives for Main Business Profits

The performance of 19H1 seasoning was in line with expectations.

19H1 company achieved total operating income23.

9.2 billion, +10 in ten years.

03%, of which the delicious fresh revenue was 22.

62 trillion, +15 for ten years.

26%, the headquarters / real estate / Seiko revenue of 0.



420,000 yuan, at least -1.

02 / + 0.

21 / + 0.

00 million, the revenue of the headquarters dropped sharply. H1 sold assets resulting in a high base.

Realize net profit attributable to mother 3.

6.6 billion, a high base +7 in the next decade.

99%; net cash inflow from operating activities 6.

74 trillion, +63 for ten years.

59% was mainly due to the increase in the payable items and the decrease in inventory and receivable items, achieving a healthy growth.

Revenue from delicious freshness continued to grow, and profits remained stable.

Delicious fresh 19H1 revenue 22.

62 trillion, +15 for ten years.

26%, of which the soy sauce and sauce in the condiment grew steadily, increasing by +10 respectively.

44% / 12.

01%, oyster sauce, cooking wine continued to increase due to the growth of the industry and active expansion, respectively +60.

93% / 65.

63%, edible oil, bean curd growth rate exceeded 25%; net profit attributable to parent company3.

62 trillion, ten years +20.


The product gross profit margin reached 39.

61% every year -0.

38pct, mainly due to the high prices of some raw materials such as glutamic acid and packaging materials, and the increase in the proportion of non-soy sauce products, but it has still increased by about 18 years.

41pct; expense ratio 18 in the first half.

79% per year.

41pct, of which sales expenses / administrative expenses increased by 7% / 19%, respectively, due to the increase in sales staff salaries, freight and business expenses, advertising costs did not increase; management personnel expenses, employee social security expenses, etc. also increased, the expense ratio fellRaise net interest rate to 17.

64%, ten years +0.

62 points.

Looking at the second quarter alone, delicious fresh realized income of 10.

95 trillion, ten years +15.
26%, net profit attributable to mother 1.
76 trillion, +7 for the next ten years with a high base.

98%, net interest rate 17.

53% a year -1.


National expansion has accelerated, and incentives have increased.

The company plans to achieve the double hundred goals by 2023, and the current progress reflects strong execution.

1) National expansion accelerated: 19H1 Eastern / Southern / Midwestern / Northern regions income +12 for ten years.

13% / 11.

87% / 24.

49% / 20.

78%, the total number of dealers reached 975, a net increase of 111 dealers, of which 44/55 were added in the central and western regions and the north, of which 15 were developed as blank prefecture-level cities, and the prefecture-level city development rate reached 81%.

Advancement of nationalization progress; 2) High growth rate of catering channels: The company reorganized the dealer structure and updated the distribution standards of dealer resources. At the same time, it used the Kitchen Chef Club as a platform to pass the Super Cold Food Awards and top chef training camps.The event, in conjunction with the promotion of the terminal, achieved rapid growth in the catering channel, and finally the sales time of catering products in the first half of the year was +41.


At the same time, the development of e-commerce and export channels was accelerated, and mainstream direct-operated platforms, new retail platforms were set up and developed, and the number of exporting countries increased to 7; 3) Product upgrades: 19H1 completed light salt, small naughty low-soy sauce andUpgrade of seafood, steamed fish flavor soy sauce, and completed the “2019-2023 Preliminary Product Development Plan” for other multi-category products, increasing product development efforts; 4) Growth of incentives: the company continues to expand the incentives of employeesIn order to increase the weight of the assessment of income indicators, bonuses are tilted towards middle-level backbones, and the ratio of excess rewards is increased.

In addition, the company plans to build a food science and technology industry incubation zone, with health food as a breakthrough, to achieve resource integration.

Profit forecast, estimation and investment recommendations: The company’s condiment business is in good condition, and there is room for growth in the development of a nationalized market, the development of catering channels and category outreach, and the EPS forecast for 2019-2021 is reduced by 0.



38 yuan, after considering the improvement of the mechanism, the performance is expected to continue to grow well, maintain the target price of 50 yuan, and maintain a “strong push” rating.

Risk Warning: The growth 厦门夜网 of condiments is not as expected, and the effect of improving the mechanism exceeds expectations.