\u3000\u30003 Guangdong Hongda Blasting Co.Ltd(002683) 00268)
Events
On the evening of April 13, Joyvio Food Co.Ltd(300268) issued a private placement plan, which plans to issue no less than 34.84 million shares and no more than 52.26 million shares to jiawo group, the controlling shareholder of the company, with a total amount of raised funds of no less than 515632 million yuan and no more than 773448 million yuan, and an issue price of 14.8 yuan / share.
Comments
Shareholders’ full subscription demonstrates their confidence, and the financial structure is expected to be optimized. The fixed increase was fully subscribed by the controlling shareholder jiawo group, demonstrating the firm confidence of the controlling shareholder in the future development of the company. All the raised funds will be used to supplement the working capital. The company’s financial structure is expected to be optimized, the company’s cash flow situation is expected to be effectively improved, and the financial expenses are expected to be reduced, releasing the company’s profit elasticity. The fixed increase is expected to fully boost the company’s business confidence and improve the company’s performance and profitability.
The demand of the industry recovered, the company reduced its losses significantly, and the fundamentals of the post epidemic era continued to improve. Affected by the epidemic in 2020, the global price of salmon fell significantly. Since 2021, the demand of salmon consumer market has gradually warmed up, and the price has rebounded, driving the growth of the company’s performance. The company’s annual loss narrowed significantly. Australis achieved a sales revenue of 3.169 billion yuan in 2021, an increase of 2% year-on-year in 2020; The net profit was 831938 million yuan, turning losses into profits year-on-year in 2020. In addition, the company continued to promote management optimization, cost reduction and efficiency increase, and invested in the rough processing plant in zone 12, with an annual processing capacity of about 72000 tons. We expect that with the effective cost reduction and efficiency increase after the trial operation of the rough processing plant at the end of March 2022, and the rise of fish prices in the post epidemic era, the company’s performance is expected to release high elasticity.
China’s business is activated and the road to growth is broad. The company has strengthened brand expansion and launched the brand of highly nutritious children’s food “greedy bear” for mother and baby customers, and new products such as “salmon fresh pine”, “salmon crispy chips”, ” Atlantic China Welding Consumables Inc(600558) real cod”, etc. The new management team of the company has rich experience in Chinese snack food management and is expected to activate the vitality of China’s deep processing business. The gross profit margin of deep-processing products is 2-3 times that of the company’s main rough processing products. With the continuous development of deep-processing products and the continuous strengthening of brand awareness, the company’s business profitability is expected to continue to improve.
Investment advice
We predict that from 2022 to 2024, the company’s net profit attributable to the parent company will be RMB 101 / 197 / 425 million respectively, corresponding to eps0 58 / 1.13/2.44 yuan, and the current share price corresponding to PE is 33.88/17.44/8.07x respectively. Considering that the price of salmon is expected to continue to rise and the costs of financial expenses and feed raw materials are gradually falling, it is expected that the performance flexibility of the company will continue to release and maintain the “recommended” rating.
Risk tips
Repeated outbreaks; Salmon disease risk; Food safety risks.
