\u3000\u3 China Vanke Co.Ltd(000002) 311 Guangdong Haid Group Co.Limited(002311) )
Core view
The company issued the plan for non-public offering of A-Shares in 2022, with the issue price of 45.09 yuan / share, the number of shares issued shall not exceed 33.27 million, and the total amount of funds raised shall not exceed 1.5 billion yuan. The net amount of funds raised after deducting the issue expenses will be used to supplement working capital.
The controlling shareholders fully subscribe for the additional issuance and are firmly optimistic about the future of the company. This non-public offering is fully subscribed by Mr. Xue Hua, the controlling shareholder of the company. After the offering, Xue Hua and haihao investment, the controlling shareholder, will jointly hold 55.7% of the shares of the company. The shares issued this time shall not be transferred within 18 months from the date of issuance, which shows that the controlling shareholders are actively optimistic about the long-term development prospect of the company, give strong support to the development of the company and boost the confidence of team management.
The capital expenditure is large, which alleviates the capital pressure. In 2022, the asset liability ratio of Q1 company reached 60.98%, which was at a historical high since its listing. In order to continue the construction of sow farms, increase feed capacity and expand the business of seedling dynamic insurance, the company will maintain large capital expenditure in 2022, or have a certain impact on cash flow. Through non-public offering, the company can effectively alleviate cash pressure, optimize asset liability structure, reduce asset liability ratio, and improve profitability and anti risk ability.
The low share price boosted market confidence. The low share price boosted market confidence. As of April 19, the closing price of the company was 60.85 yuan, the current corresponding 22-year PE was 31.5x, and the dynamic P / E ratio was slightly lower than the historical average. The fixed increase is conducive to boosting the confidence of the secondary market and forming a strong support for the stock price
Profit forecast and investment suggestions
The company’s main feed industry has maintained steady growth, and the breeding business has reached the bottom. With the recovery of breeding market in the second half of the year, the company’s performance may have great room for improvement. We expect the net profit attributable to the parent company to be RMB 3.209/47.86/6.058 billion from 2022 to 2024, with a year-on-year increase of 101% / 49.2% / 26.6%. We use FCFF valuation with a target price of 83.74 yuan to maintain the “buy” rating.
Risk tips
The risk of decline in feed demand, the risk of fluctuations in pig prices, the decline in consumer demand exceeding expectations, overseas business less than expected, etc.
