The leading enterprise of quick-frozen meat products, based on Shandong radiation the whole country
The company is engaged in the production and sales of quick-frozen food, with a wide range of products, including balls, intestines and other quick-frozen meat products. Over the past 16 years, the company deepened channels and improved incentives, with revenue of 890 million, an increase of 6.3% over the same period last year. The company's marketing network is centered on Shandong and covers the whole country. The main markets are East China, North China and Central China, accounting for 33%, 31% and 20% of revenue in 2016, respectively.
Consumption upgrading has led to the expansion of the quick-frozen food industry, and the leading companies in quick-frozen modulation have benefited from industry integration.
1. The market for quick-frozen food is nearly 80 billion, and it is expected to maintain a growth rate of more than 10%. China's frozen food market is close to 80 billion, and is expected to maintain more than 10% growth. China's per capita consumption is only 9kg, which still has more room for development compared with Europe, the United States and Japan. The increase of urban population, the improvement of residents' income level, the development of catering industry, the development of cold chain logistics and other factors are expected to promote the sustainable development of the industry; 2, the concentration of quick-frozen conditioning food is low, and the fierce competition in the south and Huifa in the north has advantages. Quick-frozen conditioning food is growing rapidly, and the growth rate is expected to remain at about 15% in the next few years, the rapid concentration of quick-frozen conditioning products is low, competition is fierce in the south, and Huifa in the north has an advantage. Leading companies such as Huifa are expected to benefit from industry integration and increase market share.
Lower prices of raw materials and sinking of superimposed channels contribute to steady growth of sales
1. The price of raw materials is lower, and the price-for-volume strategy promotes the growth of sales. The company adopts the price-for-volume strategy, and its income has achieved restorative growth in 16 years. In the past 17 years, the price of the company's main raw materials showed a downward trend, and the gross profit margin will rise steadily; after the cost is expected to fall, the company will continue its price-for-volume strategy, and sales are expected to grow further. 2. The channel continues to sink and expand the marketing network. The company is mainly based on the dealer model, supplemented by the Shang Chao model. In recent years, it has strengthened the development of the terminal direct sales model, and streamlined and adjusted the sales force to promote sales growth. The company already has 540 dealers, of which North China accounts for more than 40%. The funds raised to continue to expand the marketing channel will contribute to the growth of the company's product sales next time.
Profit forecast and investment advice
The estimated income for 17-19 is 9.49,10.13 and 1.085 billion yuan, the growth rate is 6.6%, 6.7% and 7.1% respectively, and the estimated net profit for 17-19 year is 0.47,0.53 and 60 million yuan, with an increase rate of 12%, 12.4% and 12.5% respectively. If the company successfully issues 30 million shares this time, the total share capital after the issue will reach 120 million shares. It is estimated that the diluted EPS of the company in 17-19 will be 0.39 RMB 0.44 RMB 0.50 per share.
Risk hint
Product gross profit margin decline risk; capacity expansion progress is lower than expected food safety issues.