\u3000\u3000 Muyuan Foods Co.Ltd(002714) (002714)
Key investment points
Event: the company issued the restricted stock incentive plan for 2022. The number of restricted shares to be granted is 81.081 million, accounting for about 1.5% of the total share capital of the company. The grant price is 30.52 yuan / share. The stock source is the directional issuance of A-share common shares of the company to the incentive object.
Comments: the performance appraisal target set by this equity incentive is that the growth rate of pig sales in 2022 and 2023 is no less than 25% and 40% based on 2021, and the corresponding values are 50.33 million and 56.37 million respectively. The objects of this incentive include directors, senior executives, core technicians, core managers, core business personnel and other employees that the board of Directors believes need to be encouraged, with a total number of 6093. This will help promote the company to establish and improve the incentive and restraint mechanism and mobilize the enthusiasm of employees, Cultivate a sense of responsibility and mission, so as to ensure the long-term development of the company, promote the development of new business through equity incentive, and effectively combine the interests of shareholders, the company and operators.
The company adjusts the production rhythm according to the cycle, strives for progress in stability, scientific and efficient breeding, and has a business model of “full self-cultivation, full chain and intelligence” with complete industrial chain. In 2021, 40.263 million pigs were sold, including 36.887 million commercial pigs, 3.095 million piglets and 281000 breeding pigs. By the end of December 2021, the number of fertile sows was 2.831 million, and the annual sales revenue was 75.09 billion yuan, a year-on-year increase of 36.4%. The company adopts the self breeding mode. After heavy assets are put into construction, it can realize rapid expansion without order outsourcing and other intermediate links, avoid the expansion ceiling caused by the number of high-quality farmers or professional fattening farms, and realize a complete industrial chain covering scientific research, feed processing, pig breeding, breeding pig expansion, commercial pig breeding and pig slaughter. The company’s production capacity layout is still carried out in an orderly manner. In August 2021, the company successfully issued 9.55 billion yuan of convertible bonds, of which 5.1 billion yuan will be invested in the construction of projects related to the expansion of pig production capacity. In addition, the company extends from breeding to downstream slaughtering business. As a large breeding enterprise, it develops pig slaughtering and processing business locally and nearby. 1.9 billion yuan of the funds raised by convertible bonds will be invested in slaughtering projects, The slaughtering capacity is expected to increase by 13 million head / year. The non-public offering plan was announced in October 21, and it is planned to raise 6 billion yuan to supplement working capital, optimize the financial structure, enhance the strength of the company and meet the needs of future development.
Grasp the cost advantage and cultivate science and technology in Colleges and universities. Muyuan aims to tap its competitiveness in terms of the two main cost components of feed and labor: in terms of feed, the company produces independently, and the breeding capacity is mainly distributed in the main grain producing areas, so it can harvest raw grain nearby, the supply is stable and controllable, and the procurement cost is reduced; In terms of personnel management, the company has formulated a clear standardized system to link employee compensation with field production. The breeding cost is lower than that of other enterprises in the industry. In the future, the company will grasp the advantages and continue to expand production. On the other hand, muyuan attaches great importance to breeding efficiency, has the advantages of intelligent modern pig house, improves the breeding system, ensures the survival rate of pigs, and tackles key technologies such as unmanned intelligent control of pig house environment, automatic identification and early warning of pig health, welfare breeding facilities and equipment, Biosafety of pig farm and engineering epidemic prevention.
Profit forecast and investment suggestions. Due to the recovery of national pig production capacity and the relatively low price of pork, the profit forecast of the company is adjusted. It is estimated that the EPS from 2021 to 2023 will be 1.42 yuan, 1.84 yuan and 5.68 yuan respectively, and the corresponding PE will be 43 / 33 / 11 times respectively. Maintain a “hold” rating.
Risk tip: African swine plague rebounded; Pig price fluctuation; The production progress of the project is less than expected.
