Incident: The company issued an announcement, and the subsidiary signed a cooperative implementation agreement with Health China Watch magazine, which is managed by the National Health and Health Commission.
Join hands with Health China Watch magazine to actively lay out the big health industry
Relying on the resources, technical advantages and development potential of their respective business fields, the two sides will establish comprehensive strategic cooperation in the field of big health. Specifically, the signing of this agreement will promote the development efficiency and marketing of the company's C-end products in the field of functional sugars. The company relies on the “Health China Research Center Health Food Research Institute” jointly established by the two parties to enhance the company's R&D and integration capabilities in the fields of functional sugar ingredients, functional health food formulations, etc., to achieve terminal product creation in the health food field. Through extensive participation in media activities, the company deepened the corporate image of Bowling Bao's Big Health, and pressed the acceleration key for the company's terminal product sales and the establishment of its own brand, helping the company complete the transformation from a B-side raw material manufacturer to a Big Health C-end enterprise, improving the company's profitability and sustainable business development.
An equity incentive plan was awarded for the first time. The high goals fully demonstrate the strength and wide coverage of the equity incentive plan of the company that is confident in developing, and is deeply tied to a number of core executives. At the same time, equity incentives evaluate revenue and net profit at the company level: the target value for the assessment of operating income is 2021-2023 operating income of 26.0/375/ 45.0 billion yuan; the assessment target value for net profit is $15/26/34 billion. Based on the company's revenue and profit target, the compound growth rate of revenue in 2021-2023 reached 31.6%, and the compound growth rate of net profit reached 50.6%, demonstrating the company's confidence in future development.
The company's first incentive for most middle and senior managers and core technical personnel is expected to stimulate the company's development potential. It is expected that management will pay more attention to the company's business development through shareholding, which will have more far-reaching long-term significance.
The company's competitive advantage is outstanding and is expected to fully benefit from the sugar reduction trend
As a leader in the functional sugar industry, we believe that the company's core strengths stem from three aspects: 1) R&D and innovation advantages: the company has independent intellectual property rights for key functional sugar technologies, participated in the formulation of more than 20 industry standards, 1 international standard, and has a voice in the industry. 2) Advantages of the whole industry chain: The company is currently the only manufacturer and service provider for a full range of functional sugar products in the domestic market, and can provide customers with rich comprehensive solutions. 3) Brand and market advantage: Over the years, the company has continuously strengthened its marketing and program marketing capabilities for major customers, connecting with customer implementation plans and collaboratively innovating. We believe that the company has grasped the major trend of sugar reduction, and as the company's production capacity continues to be released, its performance is expected to continue to grow.
Profit forecasting and investment advice
It is estimated that in 2021-2023, the net profit of the mother will be 1888/271/356 million yuan, compared to 277%/44%/31%, EPS will be 0.51/0.73/0.97 yuan respectively, and the corresponding PE will be 27/19/14 times respectively. As a leading functional sugar company, the company has long benefited from the major trend of sugar reduction. Considering the continued high growth in performance, it was given 30 times PE in 22 years, with a target price of 22 yuan to maintain its “buy” rating.
Risk warning: If a large amount of production capacity is released, the risk that prices will fall back; the risk that the company's capacity expansion progress falls short of expectations; the risk of raw material prices rising
