Fish balls after melon seeds and soy sauce also have ideas? Anjing Food raised the price of the main products, and some brokers shouted a target price of 245 yuan

Per reporter: Zeng Jian Every editor: Song Siyan

According to Yasui Foods (603345, SH) disclosed on the afternoon of November 1, the company intends to reduce the promotional policy of some quick-frozen surimi products, quick-frozen dishes and quick-frozen rice noodle products from November 1 or increase the distribution price, with a price adjustment range of 3% to 10%.

As for the reasons for the price adjustment, Yasui Food said that it is in view of the continuous rise in the cost of raw materials, labor, transportation, energy, etc., and promote the sustainable development of the market and the industry. The "Daily Economic News" reporter noted that the price increase of Anjing food is within the expectations of the outside world. A few days ago, some brokers pointed out that under the pressure of short-term profits, it is expected that the company will hedge the cost pressure by raising prices. After the company's third quarter report in 2021 came out, some brokers believed that the company's stock "still has a prominent mid-line value" and gave a target price of 245 yuan; the price has about 34% upside from the company's current stock price.

<h2>The profitability of the main business is under pressure in the short term</h2>

Anjing Food is mainly engaged in the research and development, production and sales of quick-frozen hot pot material products (mainly quick-frozen surimi products and quick-frozen meat products) and quick-frozen noodle rice products and quick-frozen dish products. Products include "Yasui" brand quick-frozen food, including Q fish board, fish tofu, fried sauce small fish balls and other quick-frozen surimi products; urine meatballs, Kasumi dumplings, kissing intestines and other quick-frozen meat products.

According to the third quarter report of 2021 disclosed by Yasui Foods on October 30, the company achieved operating income of 6.096 billion yuan in the first three quarters of 2021, an increase of 35.92% year-on-year, and a net profit of 494 million yuan, an increase of 30.25% year-on-year. In the third quarter, the company's operating income was 2.203 billion yuan, an increase of 34.92% year-on-year, and net profit was 146 million yuan, an increase of 22.44% year-on-year. After deducting non-recurring gains and losses, the company's net profit in the third quarter was only 77.4776 million yuan, down 28.36% year-on-year, which was somewhat lower than market expectations.

For the company's above report card, Guosheng Securities evaluated it as: "Cost pressure superimposed on promotion has increased, and profitability has declined." According to Guosheng Securities, the company's gross profit margin in the third quarter was 18.3%, down 8.1 percentage points year-on-year. The main factors causing the decline in the company's gross profit margin are: affected by the upstream power rationing and production limitation, the expected increase in the company's raw material and labor costs; the increase in promotional discounts and so on. In the first three quarters, the company's net profit margin was 8.1%, down 0.3 percentage points year-on-year, of which the net profit margin in the third quarter was 6.7%, down 0.6 percentage points year-on-year.

In the view of Guosheng Securities, Anjing Food "under the national production capacity layout, the scale effect continues to appear, the net interest rate is expected to recover, and the allocation value of the mid-line dimension is still outstanding"; its adjustment of the company's stock target price to 245 yuan, corresponding to about 55 times PE in 22 years, maintaining a "buy" rating.

Huaxi Securities also pointed out that the gross profit margin and expense ratio of Anjing Food in the third quarter fell together, and the profitability of the main business was under pressure in the short term. However, it believes that with the arrival of the peak season in the fourth quarter, the company's operation is expected to continue to improve. Founder Securities said that under the pressure of short-term earnings, it is expected that the company will hedge cost pressures by raising prices.

<h2>Recently, many companies have raised product prices</h2>

The "Daily Economic News" reporter noted that since the beginning of this year, more than 10 listed companies have issued product price increase announcements, and some of them have raised prices many times. Recently, a number of listed companies have issued price increase announcements, and their stock prices have performed differently after the announcement.

On October 22, Qiaqia Food (002557, SZ) announced that it will adjust the ex-factory price of the company's sunflower seed series products and pumpkin seeds and small and fragrant watermelon seed products, and the price increase range of each category is 8% to 18%, and the price implementation will be implemented on October 22.

"The price adjustment of some products may have a certain impact on market sales, so the impact of the price adjustment on the company's future performance is uncertain." Qiaqia Food said. Funds responded positively to this. On October 22, the company's stock price rose and fell, and in the following few trading days, it was also in an overall upward trend, during which it once hit a short-term stage high of 58.57 yuan / share.

In mid-October, Haitian Flavor Industry (603288, SH) announced that it would adjust the ex-factory prices of some products such as soy sauce, oyster sauce, and sauces, with the adjustment range of 3% to 7% for the main products, and the new price implementation began on October 25. The news has aroused many concerns, and investors are also talking about it. However, the stock price of Haitian Flavor Industry has since moved relatively smoothly.

Earlier, Dongpeng Holdings (003012, SZ) and Diou Home (002798, SZ) have successively announced price increases for tile products. Dongpeng Holdings announced on September 24 that in order to cope with the rise in raw material and energy prices and the impact of supply and demand, the company will adjust the prices of its main products and raise the sales price of tile products from October 1. Diou Home Furnishing announced twice on October 11 and 15 that its holding subsidiary Foshan Oceano has raised the sales price of tile products since October 11. The stock prices of the two companies have not fluctuated much after the disclosure of the price increase announcement.

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