\u3000\u3 China Vanke Co.Ltd(000002) 567 Tangrenshen Group Co.Ltd(002567) )
Event:
Tangrenshen Group Co.Ltd(002567) announcement: in 2022, it is planned to issue no more than 360 million shares to no more than 35 investors, and the raised funds will not exceed 1.22 billion yuan.
Key investment points:
The funds raised through non-public offering of shares shall not exceed 1.22 billion yuan. In order to implement the development strategy of “striving to sell 10 million pigs within five years” and enhance capital strength, Tangrenshen Group Co.Ltd(002567) issued the plan for non-public offering of A-Shares in 2022 on April 11, 2022. It is proposed to issue non-public shares to no more than 35 investors, including the controlling shareholder Tangrenshen Group Co.Ltd(002567) holding, of which the subscription amount of the controlling shareholder Tangrenshen Group Co.Ltd(002567) holding is no less than 100 million yuan and no more than 150 million yuan. The total number of shares issued shall not exceed 30% of the total share capital before this non-public offering, i.e. 360 million shares.
860 million yuan to support the expansion of pig production capacity, 360 million yuan to supplement working capital. The additional capital is expected to be 360 million yuan to supplement the company’s working capital, and the remaining 860 million yuan will be invested in five pig breeding projects, namely 160 million yuan in Hunan Dongchong phase III pig breeding base project, 110 million yuan in Guangdong Yunfu pig seedling breeding project, 130 million yuan in Guangxi Rongshui County breeding poverty alleviation project, 230 million yuan in Guangxi Pubei Meishen breeding project 230 million yuan was invested in Hainan’s integrated 150000 head breeding project. In 2021, the company sold 1.54 million pigs, including 630000 piglets and 910000 fat pigs. From 2022 to 2024, the company plans to sell 2 million, 3.5 million and 5 million pigs respectively, and they are basically fat pigs. The long-term development goal of the company’s pig production capacity is to sell 10 million pigs a year, mainly in sales areas, including 3.5 million pigs in Hunan, 3 million pigs in Guangdong, 1 million pigs in Guangxi, 500000 pigs in Hainan and 2 million pigs in other regions (including Henan, Hebei, Yunnan, Gansu, etc.).
Profit forecast and investment rating: the production capacity of pig breeding continues to be reduced, the inflection point of pig cycle is approaching, the cost of pig breeding of the company is gradually decreasing, the building breeding is highly replicable in the future, the company has abundant funds in the downward cycle, and grasps the marketing rhythm to reduce losses in the downturn period. The production capacity in the upward period is flexible, and the future growth can be expected. Based on the principle of prudence, without considering the dilution factors of the shares issued and the impact of the acquisition for the time being, we predict that the net profit from 2021 to 2023 will be -1.01/0.6/2.51 billion yuan respectively, and the corresponding PE will be – / 194.3/4.8 times respectively. It will be covered for the first time and given a “buy” rating.
Risk warning: epidemic risk; Biological assets impairment risk; Risk of high raw material prices; Project implementation risk; Risk that the company’s performance is lower than expected; The risk of uncertainty in the process of private placement of the company.
