\u3000\u3000 Qianhe Condiment And Food Co.Ltd(603027) (603027)
Event: Qianhe Condiment And Food Co.Ltd(603027) issued the draft restricted stock incentive plan for 2022, which plans to grant 4.59 million restricted shares to the incentive object, accounting for 0.575% of the total share capital of the company, and the grant price is 9.79 yuan / share. At the same time, the company issued a non-public offering plan for 2022, and plans to raise 500-800 million yuan (including the upper and lower limits) for the “intelligent manufacturing project of seasoning with an annual output of 600000 tons”. Bind core employees and stimulate the business vitality of the company. The total number of incentive objects to be granted in this incentive plan is 73, including directors, senior managers, middle managers and employees working in the company (including subsidiaries)
Core backbone. The assessment objectives of the three lifting periods are as follows: Based on the operating revenue in 2021, the growth rate of operating revenue in 2022 / 2023 / 2024 is not less than 18% / 38% / 60% respectively, corresponding to the year-on-year growth rate of operating revenue in 2022 / 2023 / 2024 is 18% / 17% / 16%; Or based on the net profit in 2021, the growth rate of net profit in 2022 / 2023 / 2024 shall not be less than 50% / 90% / 130% respectively, corresponding to the year-on-year growth rate of net profit in 2022 / 2023 / 2024 of 50% / 27% / 21%. We believe that equity incentive can help bind the interests of core employees and boost team morale and work enthusiasm.
Fixed increase fund-raising helps to expand production capacity and escort large-scale products. The company plans to issue shares to Mr. Wu Chaoqun, the controlling shareholder, actual controller, chairman and president. The total amount of funds raised is 500-800 million yuan (including the upper and lower limits), and the issue price is 15.59 yuan / share, which shows the confidence of the controlling shareholders in the medium and long-term development of the company. All the raised funds will be used for the construction of the “intelligent manufacturing project of seasoning with an annual output of 600000 tons”. The project is expected to be completed in December 2024. After completion, it is expected to increase the annual production capacity of 500000 tons of brewing soy sauce and 100000 tons of cooking wine. At that time, the annual production capacity of soy sauce / vinegar / cooking wine will reach 82.0/18.3/150000 tons respectively.
The expansion of distribution channels across the country is still in progress. The company’s core product is zero addition of high-end soy sauce, takes the business supermarket channel as the main entry point, and actively builds e-commerce channels. In October 2021, the company plans to officially enter the circulation channels outside the southwest region, and will gradually expand the market in different regions based on the principle of from easy to difficult. Based on the southwest region, the company continues to promote nationalization. At present, the East China market is relatively mature, and will continue to make efforts in central and North China in the future. In addition, the company launched new products such as low-cost zero addition soy sauce, 8g fresh light salt soy sauce and steamed fish soy sauce in 2021h2, continuously enriching the product matrix.
Profit forecast, valuation and rating: considering the obstruction of mass consumption in 2021, the company’s performance is under pressure, and the relevant expenses of the incentive plan will be amortized by 22.09/15.86 million yuan from 2022 to 2023, we reduced Qianhe Condiment And Food Co.Ltd(603027) the net profit attributable to the parent company from 2021 to 2023 to 215/310/411 million yuan (9% / 9% / 6% lower than the previous time), equivalent to EPS of 0.27/0.39/0.51 yuan from 2021 to 2023, The current share price corresponds to 73 / 51 / 38 times of PE from 2021 to 2023. The company’s high-end upgrading direction and nationalization trend remain unchanged. We are optimistic about the long-term development space of Qianhe and maintain the “overweight” rating.
Risk warning: the expansion outside the province is less than expected; The rising range of raw material cost is higher than expected; Food safety risks.
