Fu Jian Anjoy Foods Co.Ltd(603345) (603345)
With the rapid development of the prefabricated vegetable industry, it can not only serve consumers, but also reduce costs and increase efficiency for businesses. Due to the upgrading of consumption and the acceleration of catering chain, driven by the changing habits of the younger generation, the prefabricated vegetable industry has ushered in rapid development. At present, the prefabricated vegetable industry is characterized by product diversification, low industry concentration, obvious regional characteristics and small enterprise scale. The five factions participate in the industry competition. Catering enterprises have brand and R & D advantages, but their sales channels are relatively single and have no advantages in production; Professional enterprises have R & D and cost advantages, but they have bottlenecks in management; Raw material enterprises have cost advantages, but their brand and marketing power are weak; Retail enterprises have certain channel advantages, but lack R & D and production capacity, and do not have strong control over the price system; Quick frozen enterprises have brand advantages and certain synergy of channels, but lack of R & D and landing brands.
Kwai Fu shapes brand and grabs the mind. In the brand building, the company hired Su Bingtian to speak for him, and he used Su Ping to call out Kwai Kwai, highlighting the image of Mr. freehand’s fast food, which had strong visual impact. The company has led distributors to make quick Kwai dish counters in vegetable markets, BC stores and fresh stores. Quick Kwai dish counters are less investment and less risky. The strong marketing team of Anji cooperates in the whole process to provide support such as display, advertising and tasting, and comprehensively launch promotion activities in the terminal market. The company assists store owners in district management, assists dealers in building self-developed channels, and cultivates new growth points for dealers. Anjoy launched a tiger with wings added to its high-end prefabricated dishes, which is a differentiated route with the frozen Kwai quick dishes. Mr. frozen products will integrate a large number of high-quality manufacturers to speed up the listing of family table dishes. At the same time, in terms of management team, the company invests in all cooperative factories, and strengthens the quality control of agent factories, so as to ensure the product quality and stability.
The three heroes of cuisine are expected to start quickly. The company mainly promotes pickled fish, fan bone, cowboy bone and other dishes. First of all, there are no big brands of these products in China, and Mr. frozen products is expected to occupy the minds of consumers. Secondly, the three heroes of cuisine is a big single product in the industry. It has a certain market scale and consumer acceptance, which is easier to start. In terms of channels, the three heroes of dishes can realize all regional and all channel sales.
Profit forecast and investment rating: the demand for catering chain and family convenience has increased, and the prefabricated vegetable industry has ushered in rapid development. At present, the prefabricated vegetable industry has a large market space and low industry concentration. AndI has competitive advantages in management, channel and brand. Mr Kwai Chi is a company’s main product and is expected to become a new growth curve for the company. We expect that the company’s EPS from 2021 to 2023 will be RMB 2.99/3.93/5.25 respectively, and the corresponding PE will be 65.94/50.19/37.56 times respectively, giving a “buy” rating.
Stock price catalyst: product price increase; The price of raw materials decreased; Performance exceeds expectations, etc.
Risk factors: the price rise of raw materials exceeds expectations; Capacity expansion is less than expected; Food safety accidents.
