\u3000\u3 China Vanke Co.Ltd(000002) 191 Shenzhen Jinjia Group Co.Ltd(002191) )
Event: on February 28, the company announced that it agreed that the wholly-owned subsidiary Jinjia Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) technology, xiaofeixiang, Qiantong industry and employee stock ownership platform partnership jointly invested 20 million yuan to establish the holding subsidiary YUNPU Feixiang, of which Jinjia Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) contributed 55%.
The small partners, the first small collection of electronic cigarette integrated services platform, which combines logistics warehouse with internet plus supply chain service, has been established for the first time in the world. The team has been working hard for 15 years to serve the electronic cigarette industry, serving over 1000 brands of China’s electronic cigarette factory. Currently, its business covers 206 countries, and the total transport electronic cigarette exceeds 27 million 430 thousand tons. The establishment of a foreign investment holding subsidiary will integrate customer resources, channel resources and logistics qualifications of all parties, provide integrated logistics solutions such as material management, international special line logistics, trade customs affairs and warehousing management outside China for e-cigarette brand customers, and realize the connection and coordination with the company’s printing and packaging business and YUNPU Xinghe supply chain business, It is conducive to the multi-point flowering of the company’s business in the field of new tobacco, and improve the supporting service ability and comprehensive competitiveness to downstream customers.
Issue a restricted equity incentive plan to demonstrate the company’s confidence in development
The company issued the 2021 restricted equity incentive plan (Draft) on September 3, 2021, which plans to grant a total of 30 million restricted shares to the incentive object. The company’s performance indicators set in the incentive plan are based on the net profit attributable to the parent company in 2020, and the performance growth rates from 2021 to 2023 are not less than 22%, 50% and 85% respectively. The corresponding assessment requirements for the net profit attributable to the parent company from 2021 to 2023 are not less than RMB 1.005/12.36/1.524 billion respectively. 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.
Comprehensively layout the new tobacco core supply chain and create the second pole of growth!
1) atomized supply chain: in the post regulatory era, it is expected to benefit from the improvement of upstream and downstream concentration of the industrial chain. With the gradual implementation of China’s e-cigarette supervision, it will have a significant impact on the concentration of upstream and downstream private enterprises in the links they can participate in. Driven by technology, the company’s revenue scale has increased rapidly in recent years; The company’s in-depth layout from tobacco oil, atomization equipment and brands to overseas channels is expected to significantly benefit from the development dividend of increasing the concentration of atomization market in the future.
2) HNB supply chain: actively cooperate with China Tobacco in R & D and expand the depth of technology and service categories. In 2018, it established a joint venture subsidiary with Yunnan China tobacco to develop and layout heating non combustion appliances; Jinjia technology, a subsidiary, provides R & D and production services of new tobacco sets for China Tobacco customers in Yunnan, Guizhou, Guangxi, Shanghai and Henan.
At the same time, it is expected that the additional capital will be invested in Changyi technology and Jiju electronics, which is expected to benefit from the supply of flavors, new materials and heating appliances in heated non smoked bombs. In addition, by holding Hengtian business, we will build a comprehensive platform for overseas trade services of the tobacco industry, form a comprehensive service system from the R & D and manufacturing of cigarette label products to the trade and export of cigarette products, and strengthen the depth of services and cooperation.
Investment suggestion: we expect the company’s revenue to be RMB 5.085/65.0/8.53 billion and net profit to be RMB 1.006/13.4/1.78 billion in 202123. Considering the company’s active position in the new tobacco supply chain, the “buy” rating is maintained.
Risk tips: industrial policy risk, new product market development risk, raw material price rise risk, business development risk, cooperation or investment process is not as expected
