Main points of investment:
China's condiment industry-small products, big industries: condiments this ancient sub-industry covers a large scope, including oil, salt, sauce, vinegar and other categories, is a typical "small products, big industries". As most of the condiments have a long history, they are closely integrated with the food culture. Therefore, the early consumer training process of traditional condiments can be approximately ignored, but the product homogenization is more serious, and the demand for differentiation is not obvious, but because of the large demand, there is still a large space for development; while the new condiment, mainly represented by compound condiments, is still in the early consumer habit training period because it is an innovative product, the audience is small, but the potential and elasticity are also relatively large. An important phenomenon is that the sub-categories of condiments are gradually differentiated, which is mainly reflected in the different performance of income growth and net interest rate of the categories. With the conquest of national brands, the encampment of local brands and the surprise attack of foreign brands, we judge that the seasoning industry will continue to maintain a period of rapid development.
Anji Food-one of the leading domestic compound seasoning enterprises: the company focuses on the condiment segment industry for 20 years, focusing on compound seasoning. The company's products are of good quality and have led and participated in the drafting and formulation of a number of national and industry standards for condiments. The operating income of the company in 12-14 years is 305 million, 268 million and 279 million respectively, and the net profit is 63 million, 53 million and 57 million respectively. The company's leading products are compound seasoning powder, including sparerib king seasoning, big bone soup seasoning, beef seasoning, chicken powder and other products. The 13-year output of this kind of products is 16600 tons, accounting for 7.6% of the total production of 22 comparable enterprises. It has a high market share and accounts for 76.29%, 80.42% and 78.64% of the main business income in the past three years, respectively, which is the main source of revenue and profits of the company. The company's sales are mainly concentrated in south-central and eastern China, accounting for about 90% of the sales. The company's sales channels are mainly circulation channels, supplemented by catering channels, special channels and overseas channels, covering 25 provinces, autonomous regions and municipalities directly under the Central Government, with more than 400 dealers. It has absolute competitiveness in the central and southern and eastern regions with Fujian as the core. The company's channel mainly adopts the dealer agency system, and the proportion of distribution revenue reached 96.36% in 2014, and there is a trend of further improvement. In the future, the company will further strengthen and expand the construction of channels in order to obtain higher market share. In addition, the company has its own competitive advantages in quality control, production process and formula, product research and development capabilities, and is one of the condiment enterprises whose products can be directly exported to the European Union.
Profit forecast and investment advice: according to the IPO issue of 30 million shares and the total share capital of 120 million shares, the company's 15-17-year EPS is expected to be 0.49max 0.51 yuan 0.64 yuan respectively. With reference to the PE valuation of comparable listed companies, the company is given 30-40xPE in 2015, and it is recommended to apply for purchase.
Risk factors: food safety risk; fund-raising project risk