Compound condiment industry leader: the company was founded in 1995 and changed into a joint-stock company in 2012. since its inception, it has been focusing on the research and development, production and sales of condiments, the production base is located in Quanzhou City, Fujian Province, and the sales market is constantly expanding to the whole country. The company has two fully automatic production lines with independent R & D and design, with an output of 25000 tons of compound condiments. In 2014, the sales revenue was 280 million yuan, up 4% from the same period last year, and the net profit was 56.57 million yuan, up 7% from the same period last year. The gross profit margin was about 37% and the net profit rate was about 20%. Compared with other listed companies in spices, the profitability is second only to the Haitian flavor industry; the rate of sales expenses is maintained at about 6%, which is the lowest level of comparable companies in the industry.
The industry is a typical "small product, big market", and the products are developing in the direction of nature and nutrition: the annual turnover of condiments in China accounts for about 10% of the turnover of the food industry, which is a typical "small products, big market". The condiment industry has maintained steady development. Especially after 2003, the condiment industry has entered a period of rapid development. From the point of view of the trend, the market demand for single condiment decreased, while the market demand for compound seasoning and its production and sales increased. Over the past 10 years, the average annual growth rate of condiment production in China has exceeded 15%, the total industry output value has exceeded 140 billion yuan, the total output has exceeded 10 million tons, the average industry growth rate has reached 15%, and the growth rate of emerging products has exceeded 30%. The compound condiment industry presents the following characteristics: (1) the compound condiment industry has entered a golden period of development, and there is much room for improvement in domestic permeability. (2) the brand concentration of the industry is gradually forming. (3) the food processing ingredients market is expanding. The products are developing in the direction of high quality, natural and nutrition.
The company has a wide range of channels, product differentiation, outstanding competitive advantages: the company has a wide range of marketing channels, has a strict dealer management system, its sales channels are mainly circulation channels, supplemented by catering channels, special channels and overseas channels. At present, the company has established a distribution network covering 25 provinces, autonomous regions and municipalities directly under the Central Government, and the number of dealers has reached more than 400. The product research and development team with Mr. Lin Xiaofang as the core, based on the product formulation experience accumulated over the years, has prepared a variety of compound seasonings that meet the needs of the market, and currently has 7 patents. The company's product categories are rich and complete, currently selling more than 500 varieties, which can fully meet the personalized use needs of various types of consumers. The company has built a product system dominated by compound seasoning powder. Natural extract seasoning, spices, sauces, flavor clear soup complement each other, coordinated development of the product system, and strive to create product differentiation and enhance the company's core competitiveness.
Fund-raising investment projects: the total investment of the project raised by the company is 484.683 million yuan, and it is estimated to use the raised funds of 268.5567 million yuan after deducting the issuance expenses. The funds raised are intended to be invested in the following five projects: annual production of 1625 tons of edible fungus extract and 1625 tons of by-products, R & D center construction project, marketing network construction project and supplementary liquidity.
Profit forecast and valuation: based on the total share capital of no more than 120 million shares after the issue, we expect the company's EPS from 2015 to 2017 to be 0.50,0.56,0.65 yuan respectively. According to the valuation level of comparable companies and industries, we give the company a price-to-earnings ratio of 30-40 times in 2016, and the reasonable share price range corresponding to the secondary market is 16.8-22.4 yuan. Risk Tips:
(1) Food safety risk
(2) the risk of price fluctuation of raw materials.