Yiming Food (605179) 2023 Annual Report Analysis: Revenue and net profit increased year-on-year, and profitability increased

According to the public data of Securities Star, Yiming Food (605179) recently released its 2023 annual report. According to the financial report, the net profit of Yiming Food's revenue increased year-on-year during the reporting period, and its profitability increased. As of the end of the reporting period, the company's total operating income was 2.643 billion yuan, an increase of 8.66% year-on-year, and the net profit attributable to the parent company was 22.2372 million yuan, an increase of 117.21% year-on-year. According to the single-quarter data, the total operating income in the fourth quarter was 690 million yuan, an increase of 10.12% year-on-year, and the net profit attributable to the parent company in the fourth quarter was -13.2068 million yuan, an increase of 79.76% year-on-year.

The data was lower than most analysts' expectations, who had previously expected a net profit of around 95.515 million yuan in 2023.

Here's the detailed forecast information:

The performance of the data indicators announced in this financial report is still good. Among them, the gross profit margin was 30.54%, an increase of 3.5% year-on-year, the net profit margin was 0.84%, an increase of 115.84% year-on-year, the total sales expenses, management expenses and financial expenses were 706 million yuan, the three fees accounted for 26.71% of revenue, a year-on-year decrease of 17.46%, the net assets per share were 2.74 yuan, an increase of 2.08% year-on-year, the operating cash flow per share was 0.75 yuan, a year-on-year decrease of 7.62%, and the earnings per share were 0.06 yuan, an increase of 118.75% year-on-year. The specific financial indicators are shown in the following table:

The reasons for the significant changes in the financial statements are as follows:

1. The change in financial expenses was -20.04% due to: (1) the interest rate of bank interest-bearing loans decreased during the reporting period, and (2) the total use of bank interest-bearing loans decreased during the reporting period, and the total use of bank acceptance bills increased.
2. Net cash flow from investing activities changed by 21.3% due to a decrease in related fixed asset inputs.
3. The change in net cash flow from financing activities was -39.44% due to a decrease in total interest-bearing borrowings.
4. The change in prepayment was 111.1% due to the increase in prepayment of Jiangsu Yiming packaging materials and fresh milk purchases.
5. The change in other receivables was -45.13% due to a decrease in advances from vendors.
6. The change in other current assets was -44.64% due to a decrease in input tax to be credited and income tax to be paid.
7. The change in the construction in progress was 126.56%, due to the company's investment in Yiming Ecological Health Valley and the construction investment in Mingyuan Animal Husbandry's office space.
8. The change in productive biological assets was 31.89% due to the increase in self-reared dairy cows.
9. The change in long-term amortized expenses was -34.31% due to the decrease in normal amortization and the number of directly operated store closures during the reporting period.
10. The change in other non-current assets was 1024.91%, due to the payment of 11.75 million Yiming Ecological Health Valley land deposit, and after the right to use was auctioned, the deposit was transferred to the transfer fee.
11. The change in taxes payable was 74.21% due to: (1) the decrease in the deduction of equipment and real estate, and the increase in value-added tax, (2) the increase in the real estate tax for the use of e-commerce business parks and joint innovation centers, and (3) the land use tax is no longer reduced due to the expiration of local policies.
12. The change in non-current liabilities due within one year was -29.76% due to the maturity of long-term borrowings and the maturity of lease liabilities.
13. The change in lease liabilities was 38.66% due to the leasing of a new first-line 6-year Combibloc production line during the reporting period.

The financial report analysis tool of Securities Star Price Investment Circle shows:

In terms of asset quality, the company's accounts receivable volume is large. It is recommended to check two information of the accounting project in the annual report or semi-annual report, one is the provision, for the amount that cannot be recovered with a high probability, the company will generally make bad debt provisions, and you can check the amount of the provision and the estimated scale of the provision. The other is the aging of accounts receivable, that is, how long the account has been owed, generally most of them are less than one year, if the accounts receivable for more than one year accounts for a relatively high proportion need to be paid attention to. Inventory is higher than profit, be careful of inventory accrual impact on profit. The accounting treatment of inventory is an accounting item that will have a great impact on the company's current profit, and there is usually inventory in the company's annual report according to different types of determination methods, and it is necessary to search for inventory in the annual report to view specific data. The company's fixed assets are larger than the revenue scale, so it is recommended to focus on the analysis of the quality of the company's fixed assets. Depreciation is generally a method of accounting for the one-time expenditure of fixed assets, such as 1 million purchased a piece of equipment, according to the annual operating cost of 200,000 yuan in the next 5 years of the annual report, to prevent all included in the year resulting in the profit value is more ugly, is a method of smoothing the statement, interested in the annual report can look at the company's more detailed depreciation method, sometimes it is excessive, there will be a motive to do high current profits by extending the depreciation life of assets. You can pay attention to whether the depreciation method and time period are fair, and be wary of enterprises that increase short-term profits by doing low depreciation. Focus on the deterioration trend of corporate credit asset quality.

In terms of revenue analysis, the company's latest annual statement has positive cash flow, and the operating cash flow is much higher than the profit, which is usually a good thing, and it is recommended to confirm the reason.

In terms of operating expenses, the company's capital expenditure in the past three years is not low, risks and opportunities coexist, and it is necessary to study the feasibility and progress of investment projects. There are many financial costs used in the operation of the company. The company's R&D expenses are larger than the scale of profits, and may be more dependent on R&D, focusing on the company's product and service R&D cycle. There are many costs spent on R&D in the company's operation.

Judging from the company's financial statements in the past year, in terms of profitability, the main business has a low position in the industrial chain, barely maintaining turnover operations, and investing heavily in marketing competition. In addition, there have been significant changes in business performance in recent years, which need to be paid attention to.

Further analysis of the company's historical financial statements in the past ten years shows that the overall earnings are not very stable. Profitability has been weak all year round, and there have been times when there have been operational difficulties in historical financial reports. The business volume has experienced slow growth in the past five years, and has begun to grow at a moderate rate in recent years. Profits have shown signs of shrinking in the past five years.

The financial report check-up tool shows:

1. It is recommended to pay attention to the company's cash flow position (monetary funds/current liabilities are only 34.97%)
2. It is recommended to pay attention to the company's accounts receivable status (accounts receivable/profit has reached 569.27%)

Analyst tools show that securities researchers generally expect 2024 results of 63 million yuan, and the average earnings per share of 0.16 yuan.

The above content is compiled by Securities Star based on public information, generated by an algorithm (Network Information Calculation No. 310104345710301240019), and has nothing to do with the position of this site, if there is a problem with the data, please contact us. This article is a compilation of data and does not constitute any investment advice for you, investment is risky, please make a cautious decision.