Investment suggestion: Shenzhen state-owned enterprise reform benefits varieties, asset quality and business card capacity are in a leading position, the second half of the year is expected to be favored by the market under the influence of Shenzhen-Hong Kong Stock Connect. The company's asset value is significant, the agricultural batch market business layout is leading, the future industrial integration space is huge and the entry threshold is high. The scale of agricultural batch market business is huge and most of them are wholesale business, which is a good financial target of supply chain. In recent years, the growth of the company's agricultural market business is limited, maintaining the same EPS0.02/0.03/0.04 yuan from 2016 to 2018, maintaining the target price of 15.93 yuan, and increasing the rating.
The China report is slightly lower than expectations, and the inflection point of short-term operation is difficult to appear. Revenue / net profit of 1H agricultural products increased by 12.7% Mercer 26.8% over the same period last year (of which 2Q increased by 1.6% Maxime 46% respectively), equivalent to EPS0.02 yuan; after deducting non-profit, net profit increased by 398.1% over the same period last year, mainly due to the sales of shops in Xinliuyong, Guangxi and the investment income of Zhougudi in Hefei. The company has operated and managed more than 40 physical agricultural logistics park projects across the country, promoted the transformation of traditional agricultural market, and explored the use of "Chinese cabbage +" e-commerce platform. During the period, both small loan companies and guarantee companies turned from losses to profits (small loans increased from-1.43 million to 2.48 million, guarantee companies increased from-13.18 million to 1.8 million) and may continue to function in the financial sector of the company's supply chain in the future. Due to the impact of e-commerce and the intensification of channel competition, the company's agricultural market business profit inflection point is difficult to appear in the short term.
The equity dispute is temporarily cold, stagflation varieties + Shenzhen-Hong Kong Stock Connect is expected to be favored by the market. The company has an equity area of nearly 10 million square meters, and the revaluation is significantly easier to attract the attention of industry or financial assets. Life Life's shareholding is as high as 29.99%, which is only one step away from the required line. During the period, Shenzhen state assets, a major shareholder, increased its holdings again by 2%, with an estimated average cost of more than 13.5. The increase in state assets provides a certain safety boundary for the stock price. The company is a strong beneficiary of the reform of state-owned enterprises in Shenzhen. The Shenzhen-Hong Kong Stock Connect is expected to increase the attention of regional reform, so it is suggested to pay attention to the progress of the company's reform.
Catalyst: progress in the reform of state-owned enterprises; macro-policy dividend release of agricultural products
Risk hint: the economy remains in the doldrums; the progress of state-owned enterprise reform is lower than expected.