Peace viewpoint
The old daily chemical enterprises have obvious brand advantages: Guangzhou Langqi, the predecessor of Guangzhou hardening Oil Factory, was founded in 1959 and is one of the earliest washing products enterprises in South China. Mainly engaged in civil daily chemical products, industrial refining auxiliaries and other products manufacturing and trade. In 2016, the company's operating income from industrial products and household products accounted for 86% and 14%, respectively. In terms of industrial supplies, the company's main business is the production of washing products and the industrial production of various surfactants such as sulfonic acid. In terms of civil products, the company's business is mainly daily chemical washing products such as washing powder, liquid detergent and soap, and has established a well-known brand system with "Langqi" as the total brand. and "Gao Fuli", "Tianju", "Wanju", "Weikeyi", "Fu an", "Jianneng Jing" and other brands constitute a well-known brand system, the brand advantage is obvious.
A variety of sales channels, Qihua Network positioning "global chemical industry chain deep vertical resource integration platform":
At present, Guangzhou Langqi has three kinds of sales channels: traditional circulation channel, modern retail channel, e-commerce channel, and e-commerce channel is mainly "HIBBO Xibao" new Tmall flagship store and Qihua network. Qihua Network is a key project supported by the Guangdong provincial government. since its establishment, relying on the strong industrial background of Guangzhou Langqi, Qihua Network has entered a stage of benign development. In 2016, Qihua achieved self-sales of 4.07 billion yuan, an increase of 364% over the same period last year, making a great contribution to the substantial growth of the company's main business sales; its net profit was 4.2643 million yuan, turning losses into profits. In addition, the transaction volume of Qihua Network was 15.9 billion in 2016. in the future, the company will use Qihua Network as a platform for resource integration to realize the construction of the industrial chain and gradually extend to the upper reaches of the industrial chain. actively involved in the upstream chemical raw material research and development, production and purchase and sale trade business.
Guangzhou Light Industry's only A-share listing platform, there are asset injection expectations: as the parent company Guangzhou Light Industry's only A-share listing platform, Guangzhou Langqi has the characteristics of large groups and small companies, and the parent company has more quality assets. deposit strong assets into expectations.
The establishment of an industrial M & A fund is worth looking forward to: on October 19, 2016, Guangzhou Langqi signed a "shareholders' Cooperation Agreement" with Huiyantian Guangdong and Huiyin Huiji, intending to jointly establish Guangzhou Huiyin Langqi Equity Investment Fund Management Co., Ltd. it is mainly invested in daily chemical industry, mainly in the same industry of listed companies, upstream and downstream enterprises and related industries. Including domestic and foreign Xiuxiu and listed company assets and business to form complementary assets, that is, daily cosmetics, consumer goods and other areas of Xiuxiu growth enterprises, while not excluding other consumer industries. The equity investment fund to be established in the future will mainly invest in the promising and well-developed companies in the daily chemical industry and the emerging consumer goods industry.
The acquisition and storage of old factories is still being communicated, and the land value can be estimated: in April 2014, the company signed a "Land acquisition and Storage Framework Agreement" with Guangzhou Land Development Center, according to the planning of Guangzhou Municipal Government, the land of the company's old factory area in Tianhe District of Guangzhou City is included in the government land reserve. Considering the good geographical location and rising land price of Guangzhou Langqi factory site, according to the land price of 17000 yuan / m2 and volume ratio of 3.0 yuan, the land value of the company is 6.07 billion yuan.
Investment suggestion: Guangzhou Langqi, as a veteran company in the daily chemical industry, has obvious brand advantages. at the same time, Guangzhou Langqi is the only A-share listing platform of Guangzhou Light Industry. We estimate that the EPS of Guangzhou Langqi in 2017, 2018 and 2019 is 0.10,0.14,0.19 yuan respectively, and the corresponding PE is 95.1x, 70.0x and 50.6x respectively.
Risk hints: Qihua network development does not meet the expected risk, state-owned enterprise reform does not meet the expected risk, land collection and storage does not meet the expected risk.