\u3000\u3000 Qianhe Condiment And Food Co.Ltd(603027) (603027)
Events
The company issued the restricted stock incentive plan for 2022, and plans to grant 4.59 million restricted shares to 73 incentive objects, accounting for 0.58% of the total share capital, with the grant price of 9.79 yuan / share. At the same time, the company released the plan for non-public offering of A-Shares in 2022, and plans to raise an amount of RMB 500-800 million for the “intelligent manufacturing project of seasoning with an annual output of 600000 tons”.
Comments
Equity incentive binds backbone interests and helps the company’s performance growth
1) grant object: the company plans to grant 4.59 million restricted shares (accounting for 0.58% of the total share capital), and the grant price is 9.79 yuan / share. Incentive objects include 4 directors and senior managers, 69 middle-level managers and core backbone personnel of the company;
2) conditions for lifting the restrictions on sale of granted shares: Based on 21 years, the corresponding revenue growth rate in 22 / 23 / 24 years is 18% / 17% / 16%, and the corresponding net profit growth rate is 50% / 27% / 21%;
3) amortization expenses of equity incentive: 22-25 years are divided into 22.09 million yuan / 15.86 million yuan / 6.23 million yuan / 1.13 million yuan. It is expected that the improvement of the company’s performance brought by this incentive plan will be much higher than the increase of expenses brought by it.
The major shareholder will increase the fixed amount, and the long-term development power is sufficient
The company raised funds for the “intelligent manufacturing project of seasoning with an annual output of 600000 tons”. The project includes the production capacity of 500000 tons of brewing soy sauce and 100000 tons of cooking wine. The amount raised this time is 500-800 million yuan. Chairman Wu Chaoqun subscribed with his own funds at a price of 15.59 yuan / share, demonstrating the confidence of major shareholders in the long-term development of the company.
The short-term performance is expected to improve and the long-term growth path is clear
1) in the short term, since the Spring Festival, the company’s mobile sales have been ideal, the terminal sales of supermarkets have reached a new high, the current inventory is at a low level, and the growth rate from January to February is expected to be higher than the annual average target. Throughout the year, the company actively adjusted, completed regional integration before the year, vigorously developed traditional channels after the year, and completed a round of distribution of parity zero addition products in some regions, with sufficient growth momentum; Superimposed with the release of price increase dividends, the convergence of publicity expenses and the improvement of promotion expenses, and the profitability of the whole year is expected to improve quarter by quarter;
2) in the medium and long term, the growth path of the company is clear, and we are optimistic about the promotion of the company to the head of the second echelon of the industry. The company’s channel strategies in different regions of the country are adapted to local conditions. In the initial stage, the market focuses on “business supermarket + Zero addition”. In the stable stage, the market focus turns to traditional channels, and in the mature stage, the market continues to cultivate channels. We believe that the company continues to enrich the channel structure, improve the operation efficiency and channel competitiveness, and there is still a large space for channel expansion and sinking in the future.
Profit forecast and valuation
We predict that the revenue growth rate of the company from 2021 to 2023 will be 13.6%, 24.2% and 23.2% respectively; The growth rate of net profit attributable to the parent company was 6.6%, 48.1% and 30.7% respectively; EPS is 0.27, 0.41 and 0.53 yuan / share respectively (fixed increase dilution is not considered); PE was 77, 52 and 40 times respectively.
Risk tips
The epidemic repeatedly affected the downstream demand, the dynamic sales of zero addition products were less than expected, and the channel development was less than expected.
