I. Overview of events
The company intends to issue shares and pay cash to purchase 100% equity of Huangfeng ginseng in Changbai Mountain, and raise supporting funds. The estimated value of the underlying assets of the transaction is 365 million yuan, of which 276 million yuan is to be paid by issuing shares. According to the issue price of 14.42 yuan per share, the number of assets to be issued by the company is 19131696 shares. The issue price of matching funds raised by non-public offering shares shall not be less than 12.98 yuan per share, and the amount shall not exceed RMB 105 million yuan.
II. Analysis and judgment
The acquisition of Huangfeng ginseng industry to improve the company's ginseng industry chain, making the company a leading enterprise in the ginseng plate.
Through the acquisition of Huangfeng to participate in the industry, Yisheng initially has the strength and ability to compete with Zhengguan Zhuang in South Korea. Huangfeng ginseng industry also has certain advantages in ginseng planting, ginseng food, ginseng health products, ginseng cosmetics and ginseng fermentation products. In terms of upstream planting, Yisheng non-woodland ginseng has entered the harvest period and passed GAP certification. Huangfeng ginseng industry has 1000 mu of woodland ginseng, and the planting base has obtained organic certification in China, the United States and the European Union respectively. The planting techniques complement and improve each other. In terms of brand, the acquisition of Huangfeng makes Yisheng have a mature brand. Huangfeng is the only Chinese time-honored brand of ginseng. In terms of products and processing, this acquisition enriches Yisheng ginseng products and improves ginseng processing capacity. Huangfeng has exclusive patent protection of purple ginseng, the content of anti-cancer ingredients of purple red ginseng is 30 times that of ordinary red ginseng, which has great market potential. At the same time, in the ginseng downstream finishing and derivatives, Huangfeng in ginseng cosmetics for South Korea OEM, while the exclusive agent of South Korea, South Korea and the United States cosmetics, ginseng cosmetics business is in the forefront of domestic enterprises. In terms of product terminal market development, Huangfeng has opened five direct stores in Beijing, Changchun, Fusong and other places, and plans to increase market development efforts by speeding up the opening of direct stores and joining chains. This acquisition makes the company's ginseng industry chain complete, rapidly enhance the company's strength in the ginseng industry, and make the company a leading enterprise in the ginseng plate.
The short -, medium-and long-term price rise trend of ginseng industry is clear, and the space of ginseng industry is opening up in the short term. According to our communication with the producing area, the output of ginseng this year is further lower than that of last year. At the same time, after the price increase in the past few years, the low-cost inventory of the channel has been exhausted, and the new goods have been digested in the market. In the medium and long term, the impact of the revitalization plan of ginseng industry in Jilin Province on the limited supply of 1000 hectares of ginseng soil per year is gradually emerging. At the same time, the quantity of non-woodland planted ginseng in 6 years is clear, which has little impact on the overall supply of the market. The output of ginseng has gradually shrunk in the past two years, and it is expected that it will continue to contract in the next few years and then stabilize. On the demand side, medicine accounts for more than half, and this part is growing steadily. The demand for food and health products will gradually release in the next few years. As a result, supply shrinks and demand rises, leading to a rise in ginseng prices in the medium and long term. At the same time, ginseng has been approved as a new resource food, and the downstream space is gradually opened.
Third, profit forecast and investment suggestions
We expect EPS to be 0.30,0.35,0.41 yuan respectively in 2014-2016, and 0.40 yuan and 0.46 yuan in terms of committed performance in 2015-2016, respectively. We are optimistic about the strategic prospect of the company's ginseng planting, the prospect of continuous improvement in the company's fundamentals, and maintain a "highly recommended" rating.
Risk hint: the promotion progress of ginseng-related products is lower than expected
