Shenzhen Jinjia Group Co.Ltd(002191) (002191)
Event: on January 6, the company announced that it agreed that Jinjia Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) technology, a wholly-owned subsidiary, would increase the capital of Changyi technology by 15.75 million yuan. After the transaction was completed, Jinjia Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) held 35% equity of Changyi technology.
Changyi technology focuses on the flavor and flavor of tobacco fields and the production and technology development of new functional materials. The main products are HNB flavors and flavors for heating cigarettes, new materials for HNB heating cigarettes, and related supporting materials and technical services. This investment layout helps companies expand the business of high quality flavors and fragrances, new materials and supporting functional materials in the tobacco industry, and plays a positive synergy role in the layout and storage of the new tobacco industry chain. It is conducive to the company’s multi business flowering in the new tobacco business and improving the supporting services and comprehensive competitiveness of downstream customers.
Release the restricted equity incentive plan to demonstrate the company’s confidence in development
On September 3, the company issued the 2021 restricted equity incentive plan (Draft), which plans to grant a total of 30 million restricted shares to 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 by the incentive plan for the first time is 240. The company’s performance index is based on the net profit attributable to the parent company in 2020. The performance growth rate from 2021 to 2023 is not less than 22%, 50% and 85% respectively, and the corresponding assessment requirements for the net profit attributable to the parent company from 2021 to 2023 are not less than 10.05/12.36/1.524 billion yuan 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, capital increase cooperation process less than expected, Changyi technology business development less than expected
