The company announced its 2014 annual report that its operating income was 4.462 billion yuan, down 11.84% from the same period last year, and its net profit was 201 million yuan, an increase of 148.97% over the same period last year. The operating income of 4Q company was 1.157 billion yuan, down 1.90% from the same period last year, and the net profit was 116 million, an increase of 308.47% over the same period last year. The dividend distribution plan of the company is based on the total share capital of 1.672 billion shares at the end of 2014, with a cash dividend of 0.20 yuan for every 10 shares (including individual income tax).
Brief comments and investment suggestions:
The food business has risen steadily, and the liquor business has hit bottom and recovered. In 2014, the company focused on the "big food" strategy, focusing on superior resources to strengthen, expand, deepen and do the main business of fine food. 1) soy milk powder 2H14 performed well, with annual sales of 82300 tons, an increase of 2.74% over the same period last year, and revenue of 1.546 billion yuan, an increase of 3.23% over the same period last year. 2) Liquor business bottomed out and recovered, and the liquor sector represented by Zhijiang Liquor Industry, Guizhou Chun and Ming Distillery matured in the deep adjustment of the industry, in which Zhijiang Liquor Industry adjusted its product structure, seized terminal resources, and achieved a sales income of 1.152 billion yuan for the whole year. Jiangsu market and Zhejiang-Fujian market have formed a healthy growth; Guizhou alcohol industry focuses on "expanding sales volume and reducing cost", with annual sales income of 102 million yuan. The owner of the tea wine shop promoted the Hanyuan series of self-operated products, laid out the O2O platform, and achieved an annual sales income of 185 million yuan. 3) in other businesses, the annual income of the plant protein beverage plate was 724 million yuan, down 24.19% from the same period last year, lower than expected. Yiqingyuan tea first year combined table income of 145 million yuan, exports reached nearly 3000 tons, an increase of 80% over the same period last year, and exports increased by more than 40%.
Profitability has improved significantly, and high investment return is the main reason for the rapid growth of performance this year. The company's comprehensive gross profit margin in 2014 was 34.86%, an increase of 3.69 percentage points over the same period last year. In terms of expenses, the rate of sales expenses was 15.65%, down 3.4% from the same period last year, mainly due to a reduction of 112 million yuan in advertising, 121 million yuan in promotion and 70.59 million yuan in freight; the rate of management expenses was 8.37%, an increase of 0.14% over the same period last year; and the rate of financial expenses was 3.79%, an increase of 0.34% over the same period last year. The company's net profit was 201 million yuan, an increase of 148.97% over the same period last year, and the net interest rate was 4.01%, an increase of 2.22% over the same period last year. The increase in net profit was mainly due to the company's 14-year investment income of 184 million yuan (mainly stock investment income).
The grain logistics project of Weiwei Industrial Park starts, and the grain bulk trading platform and futures business are worth looking forward to. The industrial park covers an area of about 400mu and plans to build 500000 tons of grain storage facilities, move in the six dynasties pine production workshop at the same time, and build a flour processing workshop with a daily processing capacity of 500t wheat and an annual production line of 30,000 tons of noodles. We believe that the future grain bulk trading platform and futures business will become an important profit growth point for the company.
Private placement is expected to be approved in the first half of the year, do not rule out the introduction of war investment and extension mergers and acquisitions. The company announced on November 26th that it intends to issue no more than 160 million (including 160 million) A shares to the public. The targets are Shenzhen Jinsu Asset Management Center (limited partnership), Shenzhen Jinwu Equity Investment Center (limited partnership) and Shenzhen Jinhui Equity Investment Center (limited partnership). The issue price is 5 yuan per share, and the total amount of funds raised does not exceed 800 million yuan. We predict that the funds raised by the IPO will be mainly used for epitaxial mergers and acquisitions, focusing on big agriculture, big food and big health sectors. Otsuka, the second shareholder of the company, is the leading pharmaceutical manufacturer in Japan and has a huge amount of investment in China. In the future, the second shareholder will give strong support to the company's capital operation.
Profit forecast and valuation. In view of the fact that the company focuses on the development of the main business of "Big Food", gradually divesting other businesses, and considering the prospect of mergers and acquisitions in the future, we are optimistic about the future development of the company, considering dilution and possible acquisitions, and predict that the EPS for 15-17 years will be 0.13 / 0.17 / 0.21 respectively, and the current stock price will correspond to PE of 53-40-32, with a high valuation and no rating for the time being.
The main uncertain factors. Food safety issues, fierce competition in the industry.
