Shenzhen Jinjia Group Co.Ltd(002191) (002191)
Event: on November 24, the company announced that it had completed the equity subscription of “yunshuo technology” through the industrial fund established by the wholly-owned subsidiary, and the paid in capital contribution of the industrial fund was 10.2 million yuan, with a shareholding ratio of 51%.
Industrial chain layout of tobacco flavor standards to enhance multi-level customer service capabilities
The main business of yunshuo technology, the subject of the industrial fund transaction, is tobacco The existing management team is rich in industry experience and has obtained many patents in the field of technology research and development, production and sales of spices, flavors and atomized electronic cigarette oil. This acquisition will play a positive role in promoting the layout, storage and project incubation of new tobacco industry chain, and is conducive to the company’s new business in the new tobacco industry. Supporting service capability and comprehensive competitiveness to downstream customers.
Release the restricted equity incentive plan to demonstrate the company’s confidence in development
The company issued the restricted equity incentive plan for 2021 on September 3 (Draft), it is proposed to grant 30 million restricted shares to the incentive objects, accounting for about 2.05% of the company’s total share capital of 1.465 billion shares at the time of announcement. The total number of incentive objects granted for the first time in the incentive plan is 240. The company’s performance index is based on the net profit attributable to the parent in 2020, and the performance growth rate from 2021 to 2023 is not less than 22%, 50% and 85% respectively, corresponding to the net profit attributable to the parent in 2021-2023 The profit assessment requirements are no less than RMB 1.005/12.36/1.524 billion respectively; At the same time, the incentive object can lift the sales restriction according to the standard coefficient only after the individual performance appraisal “meets the standard”. This equity incentive helps to bind the interests of the company and core employees, improve the enthusiasm of the core team, and provide guarantee for the realization of the company’s business objectives and steady growth of performance.
The cigarette label plate is stable and good, the large packaging strategy is stable and upward, and actively store energy for new tobacco
As a leader in the tobacco label industry, the company has continued to achieve effective cost control and leading technical level through large-scale centralized mining and production process control in recent years, and continues to maintain the leading position in the tobacco label industry. In the fine wine bag business, through the comprehensive layout of multiple regions and varieties, the revenue of fine wine box increased rapidly. In terms of new tobacco, always guided by policy requirements and customer needs, Jinjia technology, as a comprehensive manufacturer and comprehensive service provider of new tobacco products such as electronic atomization equipment and heating non combustion appliances, continues to strengthen cooperation and expansion with customers at home and abroad. We believe that with the gradual implementation of China’s supervision, leading enterprises with qualifications, standardized production and mature technology will stand out and enjoy the blue ocean market of new tobacco. New tobacco is also expected to become a new profit growth point of the company.
Investment advice
We expect the company’s revenue to be RMB 5.258/64.26/7.694 billion and net profit to be RMB 1.067/13.0/1.586 billion in 2021-23. Based on the company’s scale, technical advantages and large packaging expansion, actively card new tobacco and maintain the “buy” rating.
Risk tips: order fluctuation risk, new tobacco promotion less than expected, policy risk, cooperation or investment process less than expected
