After the provincial grain group took over, it improved the company's asset structure and strengthened its main business. At the beginning of 13 years, Hunan Provincial Grain Group took over the control of the company through its Jinxia grain unit and increased its shareholding ratio to 22.34% through a private placement. At the same time, it replenished the working capital and significantly improved the company's asset structure and financial situation. In the first quarter of 15, the company's asset-liability ratio was only 33.53%. Since then, the company has spun off other businesses (real estate, construction) that have nothing to do with the main grain and oil business (real estate, construction), disposed of old assets, and successively increased capital for subsidiaries such as marketing, trade, rice, pharmaceuticals and food. the strategic thinking of making the main business bigger and stronger is clear.
The company's grain and oil main business scale and industry competitiveness will be enhanced in August of 13 years, and the Grain Group announced that it will inject competitive assets such as its market-oriented grain and oil business into Jinjian within 3 years, with a commitment deadline of 16 years in August. It is understood that the group's "Jinxia" and "Yuxiang" are respectively the top three grain and oil brands and the second hanging noodle brands in the province, which belong to the scope of committed injection of assets, and will significantly expand the company's main grain and oil industry scale and enhance the competitiveness of the industry in the future.
The internal management mechanism of the company is gradually straightened out and the sales channel is unified and standardized. By adjusting the internal management mechanism, the company merges the original independent business sales departments such as rice, noodles and oil into the sales subsidiary, which reduces the cost and standardizes the channel. it is also conducive to the company to further carry out product sales and brand expansion throughout the country in the future. In 14 years, the company's sales expense rate was 8.5%, down 0.78 percentage points from the same period last year.
The prospect of new drugs is promising, and the pharmaceutical business may achieve a substantial increase in profits. the company's drugs have been dominated by large transfusions (glucose, sodium chloride, etc.), with poor profitability, and pharmaceutical subsidiaries have lost money year after year. In 14 years, the company launched an exclusive new drug naproxen sodium injection, which has a good prospect in the field of anti-inflammation and analgesia and is currently in the market introduction period. With the company's years of operation and brand influence in the medical field in the province, the new drug is expected to sell in volume in 15 years, and bring greater profits.
Company profit forecast: after the group took over, a series of strategic adjustments were made, and we believe that the company's main grain and oil business will be significantly improved. Coupled with the volume of new drugs, we believe that the company's performance this year is very flexible, with EPS of 0.07,0.14 and 0.18 yuan respectively in 15-17 years. Considering the future group asset injection, we believe that the company's market capitalization can be as high as 12 billion yuan, corresponding to the target price of 18.7 yuan, covering for the first time and giving a buy rating.
