Main points of investment

This Thursday (October 27), there is a main board listed company "Yongshuntai" inquiry.

Yongshuntai (001338): the company's long-term deep ploughing malt research and development, production and sales; the current products are based on basic barley malt, taking into account high-end special malt and other products, is the largest malt manufacturer in China. From 2019 to 2021, the company achieved operating income of 2.938 billion yuan / 2.826 billion yuan / 3.025 billion yuan, YOY of 20.79%, 3.82%, 7.04%, and compound annual growth rate of 7.54%, respectively, and realized net profit of 144 million yuan / 135 million yuan / 149 million yuan, and YOY of-10.66%, 5.90% and 10.29%, respectively. During the latest reporting period, 2022H1 achieved an operating income of 1.967 billion yuan, an increase of 32.41% over the same period last year, and a net profit of 92 million yuan, down 29.06% from the same period last year. The company expects a net profit of about 132.0912 million yuan in 2022, down 11.31% from 2021.

Investment highlights: 1, the company is a leading enterprise in the field of malt manufacturing, the output ranks first in China and fifth in the world. With the help of reasonable production capacity layout, the company has gradually become the largest malt manufacturer in China; the company's production bases are distributed in the coastal ports of Guangdong, Zhejiang, Jiangsu, Shandong and Hebei, with the convenient conditions of port transportation and convenient for large-scale import of barley raw materials. at the same time, the above areas are also developed areas for beer production and consumption, which can effectively reduce logistics costs. In recent years, the price of domestic barley is at a disadvantage with that of imported barley, so the advantage of production distribution in coastal areas is becoming more and more obvious. Up to now, the company has 5 malt manufacturers and 11 automatic production lines, with a total production capacity of 880000 tons in 2021, ranking first in China and fifth in the world. The outstanding scale advantage can not only meet the needs of downstream customers for different malt raw materials and different supply areas, but also achieve better quality control of raw materials through large-scale batch and automatic production, so as to ensure high and stable product quality. 2. The company's customer resources are high quality and stable. The company's business began in 1987. After years of development, the company and its predecessor have reached a long-term and stable cooperative relationship with major beer groups, and have cooperated with Yanjing Beer, Zhujiang Beer and Tsing Tao Beer for 30 years. Anheuser-Busch Inbev SA and Carlsberg have cooperated for more than 20 years, and China Resources Beer and Heineken Beer for more than 10 years. At the same time, with the continuous deepening of the cooperative relationship, the proportion of the company's products in customer malt procurement continued to rise; during the reporting period, it accounted for about 50% of Anheuser-Busch Inbev SA (China) and Pearl River Beer purchases, about 10% of China Resources Beer's purchase, and about 20% of Yanjing Beer's 43% purchase. At present, China's beer manufacturing industry is showing a significant trend of centralization. China's top five beer companies China Resources Beer, Tsing Tao Beer, Anheuser-Busch Inbev SA, Yanjing Beer and Carlsberg have gradually increased their market share in the domestic beer market and exceeded 90% in 2020; as a core supplier with rich major customer resources, the company is expected to benefit from the continuous promotion of the centralization trend and accelerate the penetration of the company's products. 3. In order to comply with the development trend of the industry, the company continues to promote its products to the middle and high-end fields, and the launch of special malt is expected to enhance the company's performance potential. With the improvement of people's quality of life and the trend of personalized and fashionable consumption concept of the new generation, imported beer has grown at a rate of more than 50% for four consecutive years, and personalized small craft beer has begun to rise in major regions of the country. major beer groups have also launched mid-and high-end beer brands, and the beer market as a whole is developing towards high-end and refined brewing. The company is an early positioning enterprise in the high-end field in China, and has successively launched special malt products such as crystal malt, burnt malt and rye malt, and entered into the supply chain of middle and high-end beer manufacturers such as Heineken Beer. In order to consolidate the first-mover advantage in middle and high-end fields, the company plans to invest 522 million yuan to build a "annual output of 130000 tons of medium and high-grade beer malt project" to further expand the production capacity of special malt; the project will enter the trial operation stage in November 2022, and is expected to increase sales revenue by 436 million yuan and total profit by 24 million yuan per year.

Compared with the listed companies in the same industry: most of the listed companies in the beer manufacturing industry are beer production companies, so considering the similarity of the main nature, the listed companies in the agricultural and sideline products processing industries such as Chenguang Biology and Tianma Technology are selected as the comparable companies of Yongshuntai; according to the above comparable companies, the average income of the same industry in 2021 is 4.349 billion yuan, PE-TTM is 21.71X, and sales gross profit margin is 11.26%. The company's revenue scale and gross profit margin are in the middle range of the above-mentioned comparable companies; however, the above-mentioned companies are quite different from Yongshuntai in terms of business model, sales model, product characteristics and so on. we tend to think that comparability may be limited.

Risk hint: companies that have started the inquiry process still have the possibility of not being listed due to special reasons, the company content is mainly based on prospectuses and other public materials, and the selection of listed companies in the same industry is not accurate. Risk, content data selection may have interpretation deviation, specific listed company risk is displayed in the text content, and so on.