\u3000\u3000 Qianhe Condiment And Food Co.Ltd(603027) (603027)
The company announced the 2022 non-public offering plan and equity incentive draft. The company plans to issue non-public shares to Mr. Wu Chaoqun, the actual controller, at the price of 15.59 yuan / share, raising no less than 500 million yuan and no more than 800 million yuan for “the project that can only manufacture 600000 tons of condiments per year”. At the same time, the company announced the draft equity incentive plan, which plans to grant 4.59 million restricted shares, accounting for 0.575% of the current total share capital, and motivate 73 directors, senior executives and core managers.
Increase the capacity expansion of fixed size, and nationalization will help long-term development. All the raised funds will be used for the 600000 ton condiment intelligent manufacturing project, including 500000 tons of brewing soy sauce and 100000 tons of cooking wine. According to the company’s 2020 annual report, the construction period of the project is from January 2020 to December 2024, a total of five years, and will be completed in two phases. The first phase will realize the production capacity construction of 200000 tons of sauce wine and 100000 tons of cooking wine, and the second phase will complete the production line of 300000 tons of sauce wine. In 2020, the company’s total output of condiments will be 287100 tons. The raised investment project will significantly improve the company’s production capacity and contribute to the national development. At the same time, this issuance will be fully subscribed by the actual controller, demonstrating the development confidence.
The goal of equity incentive is to achieve high growth and stimulate the development momentum of enterprises. The equity incentive covers three directors, including Andy Lau, Xu Yi and he Tiankui, as well as a total of 73 middle-level managers and core backbone. The performance evaluation period is 2022-2024. Two evaluation objectives of operating income growth and profit growth are set (Note: one unlocking condition is met): Based on the operating income in 2021, the revenue growth rate in 2022-24 is not less than 18%, 38% and 60%, The three-year compound growth rate is about 16.96%; Based on the net profit of 2021, the net profit growth from 2022 to 2024 will not be less than 50%, 90% and 130%, and the three-year compound growth rate will be about 32%. The goal is to achieve high growth and stimulate the development momentum of the enterprise.
Focus on “zero addition” and expect high growth in 2022. In 2021, the competition in the condiment industry intensified, the community group purchase and the epidemic impacted the offline channels such as Shangchao, and the pressure on channel inventory increased. At the same time, the prices of raw materials such as soybeans increased, and the profits of enterprises were under pressure. The company focuses on “zero addition”, adheres to the product positioning of “high quality, healthy and delicious” and strengthens the construction of marketing team. According to the data of Muding Shangchao, the channel sales of the company’s Shangchao increased by 15.77% year-on-year in 2021, and the industry still achieved steady growth in the downturn. In 2022, with the recovery of consumption scenes such as Shangchao passenger flow and offline catering, the condiment industry is expected to continue to improve, The company can expect high growth.
Investment suggestion: according to the company’s equity incentive target, we adjust the company’s profit forecast. It is estimated that the operating revenue from 2021 to 2023 will be 1.934 billion yuan, 2.292 billion yuan and 2.689 billion yuan respectively, and the net profit attributable to the parent company will be 211 million yuan, 335 million yuan and 406 million yuan respectively. Excluding the increase in share capital caused by non-public offering and equity incentive, EPS will be 26 million yuan, 42 million yuan and 51 yuan respectively, The current share price corresponding to PE is 80, 50 and 41 times respectively, maintaining the “recommended” rating.
Risk warning: industry competition intensifies; The epidemic repeatedly affects consumption; Food safety accidents.
