Zhu Laoliu (831726)
The first condiment listed company of Beijing stock exchange. The company is a national key leading enterprise in agricultural industrialization. Its main business is the R & D, production and sales of fermented bean curd, pickled vegetables, cooking wine and other products. The founder team of the company has developed fermented bean curd products since 1991, and founded the “Zhu Laoliu” brand in 1997, specializing in authentic northeast flavor. With many years of professional experience and profound industry accumulation, the company has a good reputation and wide popularity in the industry. In 2019, the output model of fermented bean curd will reach the top three in China’s fermented bean curd industry, It is the first condiment enterprise listed and traded on the Beijing stock exchange.
The performance fluctuates greatly due to product upgrading and transformation. From 2018 to 2021q3, the company’s operating revenue was RMB 210 million, RMB 189 million, RMB 256 million and RMB 200 million, with growth rates of 10.67%, – 9.95%, 35.28% and 13.63% respectively. The net profit was RMB 40 million, RMB 25 million, RMB 50 million and RMB 44 million, with growth rates of 45.67%, – 39.16%, 102.08% and 23.05% respectively. The overall fluctuation was large, It is mainly because the transformation and commissioning of new equipment have affected the output of products since the second half of 2018, and the company continued to strengthen product production process optimization, automation transformation and commissioning in 2019, resulting in a decline in operating revenue.
The company’s fermented bean curd products have a broad market space. The company’s fermented bean curd products are mainly red fermented bean curd and green fermented bean curd. The products are salty and delicious. According to the 2017 food consumption report, the salty and fresh taste ranks first in the popularity of dishes, accounting for 23.30%. Fermented bean curd is one of the important basic dipping materials of hot pot. It is expected that the market scale of hot pot will reach 707.7 billion yuan by 2022. Therefore, the rapid development of hot pot industry will boost the steady growth of Sufu industry. With the gradual growth of a new generation of consumers and the continuous improvement of the penetration rate of hot pot and northeast cuisine, the company’s fermented bean curd products have a broad market space.
Profit forecast and investment rating. We predict that from 2021 to 2023, the company’s net profit attributable to shareholders of listed companies will be RMB 56 million, RMB 66 million and RMB 75 million respectively, corresponding to EPS of RMB 0.55, RMB 0.64 and RMB 0.73 respectively, and the corresponding PE of current stock price will be 26.6, 22.5 and 19.8 times respectively. It will be covered for the first time and given the investment rating of “prudent recommendation”.
Risk warning: food safety control risk; Price fluctuation risk; Dealer management risk, etc.
