\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 305 Jiangsu Hengshun Vinegar-Industry Co.Ltd(600305) )
Event: the company announced that it plans to sell 51% equity of Hengshun mall to Hengshun Group at a price of 840812 million yuan. In 2021, the operating revenue of Hengshun mall was 255847 million yuan and the net profit was -141479 million yuan.
Peel off the mall business and focus on the main business of condiments. The company sold 51% equity of Hengshun mall to Hengshun Group for 84081200 yuan. At present, the company is the company with the largest main business assets in Jiangsu Hengshun Vinegar-Industry Co.Ltd(600305) China and Africa. After stripping, Hengshun has taken a solid step in focusing on the main business of condiment and realizing high-quality development. It is expected to go into battle with light equipment, focus on the main business and invest more resources in the development of condiment business. The core competitiveness of the company is expected to be further reflected, and there may be more room for profitability. The transfer also reflects the support of the municipal Party committee, the municipal government and the municipal SASAC for Hengshun reform. With the continuous reform, Hengshun’s development is expected to reach a new level.
Marketing reform has achieved initial results, and Q1 revenue is expected to usher in rapid growth. Hengshun’s marketing reform has been continuously promoted. Since 2020, it has promoted the landing of eight war zones (later expanded to nine war zones) and created a model market. By the end of 2021, the new marketing director took office, the transparency of the company has been deepened, the market-oriented reform has continued to progress, the mechanism authority and salary system have been adjusted in place, and the grass-roots marketing personnel and war zones are always full of enthusiasm to do market work. In 2022, relying on its reputation in the main battlefield in East China, the company will increase the penetration of catering channels, quickly reach consumers with e-commerce, carry out brand rejuvenation development, and cover areas with weak brands through circulation channels. At present, the core sales areas have been expanded to Hefei, Nanjing, Zhenjiang, Changzhou, Wuxi, Suzhou and Shanghai. From the channel and grassroots research data, the dynamic sales of condiment business from January to February are good, and we expect the company’s Q1 revenue to usher in rapid growth. In the future, with the continuous release of marketing reform dividends, the company’s profits are expected to be more flexible.
Investment suggestion: we predict that the revenue growth rate of the company from 2021 to 2023 will be – 6.2%, 19.1% and 15.1% respectively, and the net profit growth rate will be – 58.8%, 68.6% and 19.8% respectively. We give the investment rating of buy-a. the six-month target price is 14.41 yuan, which is equivalent to the dynamic P / E ratio of 55x in 2022.
Risk tip: food safety issues, management reform is less than expected.
