Event: the company announced its performance pre-loss announcement.
According to the preliminary calculation of the company's financial department, the company's half-year performance in 2015 will be a loss, with an estimated loss of 85 million yuan to 90 million yuan.
Conclusion: give the company a "hold" investment rating.
In view of the company's major shareholder business strategy integration expectations and the company's pharmaceutical business future development expectations, we give the company a "hold" investment rating.
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1. The reform of the grain system will become the biggest attraction in the future. At present, China's grain and oil industry presents a pattern of strong competition outside and weak inside. Foreign-funded enterprises continue to strengthen market development and brand building during the industry trough. After years of development, foreign-funded enterprises have built their own core competitive advantages-channels and brands. Compared with foreign-funded enterprises, domestic grain and oil system enterprises should have core competitive advantages, but because of the nature of state-owned enterprises, their advantages can not be brought into full play in the process of market-oriented competition. finally, the dominant position of the domestic grain and oil market was ceded to foreign brands. We believe that the reform of China's grain and oil system will become the trend of the times. First of all, with the rise of the reform of state-owned enterprises, the reform of the grain system is a part of the reform of state-owned enterprises; secondly, the steady improvement of residents' consumption power has promoted the synchronous rise of the terminal price of grain and oil. the profit situation of the grain and oil processing industry has changed from small profits to considerable profits, which will become the strongest catalyst for the reform of China's grain system. Thirdly, from the perspective of national security, food security will become an important part of national security, and state-owned grain enterprises will shoulder the important task in the process of ensuring food security, which will bring new development opportunities to enterprises.
2. Hunan Grain Group is in charge, focusing on grain, oil and pharmaceutical business. Jinjian Rice Industry is the first grain stock in China and the first batch of national key leading enterprises in agricultural industrialization. In 2013, Hunan Grain Group took control of the company, while Hunan Grain Group promised to inject its market-oriented grain, oil and other competitive assets into Jinjian Rice Industry within three years. According to public data, Hunan Grain Group is a large state-owned comprehensive grain enterprise established by provinces and cities jointly integrating the province's superior resources with the approval of the Hunan provincial government. mainly engaged in variety research and development, grain and oil storage, grain and oil processing, transit logistics, market trading, futures delivery, trading, e-commerce, real estate development and other business. The group now has a warehouse capacity of nearly 1.4 million tons, an annual processing capacity of nearly 1 million tons of grain, oil and food, two special railway lines, six 2000-ton berths, and an annual cargo throughput of 5 million tons. After the establishment of the group, relying on the advantages of industrial clusters and integrating superior resources to achieve great-leap-forward development, the total assets increased from 3.2 billion yuan to 10 billion yuan, and the sales income increased from less than 1 billion yuan to nearly 10 billion yuan, making it one of the top 10 grain enterprises in the country. Thus it can be seen that Hunan Grain Group is a large state-owned grain enterprise with wide business scope and strong competitive strength. For Jinjian Rice Industry, the current income is about 1.5 billion yuan, while the controlling shareholder income is up to 10 billion yuan, so once the assets are successfully injected, it will greatly enhance the company's business volume and profit space.
3. Business expansion promotes the development of pharmaceutical business. Jinjian Rice is a traditional agricultural product processing enterprise, but its business covers pharmaceuticals. According to public data, Hunan Jinjian Pharmaceutical Co., Ltd. is a wholly-owned subsidiary of Jinjian Rice Co., Ltd., with large infusion as the main business, 2014 revenue of 120 million yuan, net profit of-54 million yuan, poor profitability. In 14 years, Jinjian Pharmaceutical Co., Ltd. launched a new product naproxenna injection, which has a broad prospect in the field of anti-inflammation and analgesia and is currently in the market promotion period. In addition, Jinjian Pharmaceutical's "ELISA Kit for detecting Peptide Marker Antigen" has obtained the invention patent certificate issued by the State intellectual property Office of China. This not only lays the technical support for the company to expand new product categories, but also lays the foundation for the company to build the food industry chain (mainly for food testing).
4. Investment suggestions. Due to the strong strength of Hunan Grain Group, the controlling shareholder of Jinjian Rice Industry, under the background of the reform of state-owned enterprises, the major shareholders promise to implement asset injection in the future, which brings huge imagination space to the market. In view of the good prospects for the grain, oil and pharmaceutical business, and the small market capitalization of Jinjian Rice Industry (about 6 billion), we are optimistic about the future development of the company and give the company a "hold" investment rating.
