Key points of investment
The company is an industry-leading enterprise in the big market for small products
The turnover of the condiment industry accounts for about 10% of the food industry, which is a typical “small product, big market.” After 2003, the condiment industry entered a period of rapid development, and the products in the condiment market will develop in the direction of product diversity, convenience, nutrition and health. With the improvement of people's quality of life, the amount of condiments used has gradually increased. Judging from the trend, market demand for single condiments has declined, and market demand and production and sales of compound seasonings have risen.
The company has always been deeply involved in R&D, production and sales of condiments, and has a high level of popularity and brand influence in the field of compound seasoning powder. Among them, the market share of rib flavor king series products ranks among similar products, and natural extract seasonings and flavored soup products are widely used in the domestic high-end catering industry.
In the future, the company will consolidate the market leading position of existing compound seasoning powders such as rib rib flavor, and vigorously develop the relevant pork-flavored seasoning powder represented by it as the company's leading product in the future, seize the market share of pork-flavored seasonings in the Chinese market, and use “pork flavor” as synonymous with “Anji Foods.” At the same time, the company will vigorously develop fund-raising projects such as edible fungus extract and Tetra Pak packaged bone soup. It is expected that products such as edible fungus extract and Tetra Pak packaged bone soup will become new profit growth points for the company in the future.
Profit forecasting
In 2014, the company achieved operating income of 279 million yuan, net profit attributable to the parent company of 57 million yuan, and earnings of 0.63 yuan per share.
We expect the company's revenue for 2015-2017 to be 273 million yuan, 301 million yuan, and 359 million yuan, and net profit attributable to the parent company of 59 million yuan, 64 million yuan and 78 million yuan. The corresponding earnings per share after issuance are 0.50 yuan, 0.54 yuan, and 0.65 million yuan.
Pricing conclusion
Considering the company's fundamentals and the valuation situation of comparable companies in the same industry, currently, the average price-earnings ratio of condiments in the industry as a whole is about 37 times, and there will be some premium room for IPO listings. We think it is reasonable to give the company a price-earnings ratio of 33-40 times. Based on the estimated earnings of 0.50 yuan per share for 15 years, the reasonable valuation range for the company is 16.5-20 yuan.