\u3000\u3 China Vanke Co.Ltd(000002) 311 Guangdong Haid Group Co.Limited(002311) )
Event:
Guangdong Haid Group Co.Limited(002311) release the plan for non-public offering of shares: the object of this additional offering is Mr. Xue Hua, the actual controller of the company. The number of shares issued does not exceed 33.267 million, and the amount raised does not exceed 1.5 billion yuan. The raised funds will be used to supplement the working capital of the company.
Key investment points:
Fixed increase to supplement working capital, optimize financial structure and reduce capital risk. With the company’s business development and expansion of business scale, the company’s interest bearing debt has increased in recent years. At the end of 2019, 2020 and 2021, the company’s long-term and short-term borrowings were 3.843 billion yuan, 5.973 billion yuan and 8.480 billion yuan respectively, and the amount of interest expenditure was 227 million yuan, 227 million yuan and 320 million yuan respectively. The non-public offering uses the raised funds to supplement the working capital, which is conducive to reducing the company’s asset liability ratio, optimizing the capital structure and improving the company’s anti risk ability; At the same time, it can alleviate the pressure of debt financing to meet the capital needs of the company, help to control the scale of interest bearing debt, reduce financial expenses, and improve the operating performance of the company.
Increase the company’s strength to meet the needs of future business development. At present, the competition in the feed industry is intensifying. With the intensification of market competition in the feed industry, feed enterprises have changed from simply pursuing to expand production scale in the past to obtaining higher gross profit margin by providing differentiated products and services. At the capital level, this non-public offering will help the company further expand financing channels, expand the company’s main business and improve the company’s comprehensive competitiveness. In 2021, the company achieved an external sales volume of 18.77 million tons of feed (year-on-year + 28%). At the strategic level, this non-public development will supplement sufficient working capital for the company’s development, which will help the company achieve the medium-term goal of 40 million tons of feed sales in 2025 and the company’s long-term strategic goal.
Profit forecast and investment rating considering the continuous rise in raw material prices and a slight increase in breeding costs at the beginning of 2022, we believe that the profit in 2022 will be slightly reduced. Based on the principle of prudence, the impact of this additional issuance on the company’s performance is not considered temporarily. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 2.209/55.3/6.121 billion respectively, and the corresponding PE will be 46.42/18.54/16.75 times respectively. Considering the upward trend of pig boom in 2023, the company’s pig business increased profits, and the main feed maintained a steady growth trend, maintaining the “buy” rating
Risk warning: the risk of periodic fluctuation of feed industry affected by abnormal weather and breeding diseases; The risk of substantial fluctuations in the prices of major raw materials; Risks of environmental protection laws and policies on the scale structure and regional adjustment of aquaculture industry; Risk of exchange rate fluctuation; Managing risks; The risk that the company’s performance does not meet expectations; Risks of derivatives business; Risks related to this non-public offering of shares, etc.
