Matter item
Recently, Jilin Ji'an Yisheng Chinese Ginseng traditional Chinese Medicine planting Co., Ltd., a wholly-owned subsidiary of the company, signed a "product purchase and sales contract" with Liaoning Tianshili Sentao Ginseng antler Co., Ltd., with a total contract of 105.8 million yuan.
Main viewpoints
1. For the whole year, the growth of the main pharmaceutical industry is stable, and the development of ginseng business plate will accelerate. In the past two years, the company has continuously increased its procurement and farmland harvest of ginseng. By the first quarter of 2015, the inventory has reached 1.36 billion yuan, of which the average price of purchased ginseng is 600yuan / kg. According to our estimate, the company has more than 2000 tons of ginseng stock. The sales contract of 105.8 million yuan of ginseng slices signed with Liaoning Tianshili Sentao ginseng antler (accounting for 13.43% of the company's 2014 operating income) shows that the company's ginseng quality has been recognized by the market, and the contract is expected to involve about 100 tons of ginseng. Roughly calculated according to the ginseng cost of the company's inventory, it will bring at least 20 million profit for the company. Due to the limitation of available woodland and overexploitation in previous years, the price of ginseng will remain high in the future, and ginseng business will become one of the increments of the company's future performance. In addition, the growth of the main pharmaceutical industry has stabilized due to the influence of bidding, among which traditional Chinese medicine injection is in a decline level (Qingkailing injection is greatly affected by bidding problems, Shengmai injection will remain stable), Zhenyuan capsule and Xinyue capsule are expected to maintain more than 20% growth, and profits of the main pharmaceutical industry will remain basically sound for the whole year.
two。 The land problem is solved and the construction of industrial parks is expected to speed up. On June 20, the land problem that has plagued the company for three years was solved, and the construction of Ginseng Industrial Park is expected to start on July 10: 200 mu of ginseng slices project and 200 mu of cosmetics / bees project are planned. We expect the ginseng slices project to be completed in September 2016, which includes three businesses-molded red ginseng, ginseng finishing (ginseng ointment, ginseng oral liquid, ginseng dripping pills, etc.) and characteristic Chinese herbal slices (ginseng, Schisandra chinensis and other small packaging Chinese herbal slices). The start-up of the ginseng prepared slices base will lay the foundation for the extension of the company's ginseng industry chain.
3. The cosmetics business is rapidly promoted through franchise, and annual sales are expected to exceed 100 million. China and South Korea Yisheng Hanshen Cosmetics Co., Ltd., which has been established for three months, has achieved a rebate of 30 million so far, and its revenue is expected to exceed 100 million this year. Relying on the technical team of South Korea and the sales team with rich sales experience and channels in China, the company focuses on the beauty salon market through franchise. at present, it has completed nearly 1000 beauty salons, and plans to complete the layout of 2000 next year. The company has four cosmetics brands: Lanyier, luxury lotus, Essenio, Feluiere, the products cover moisturizing, anti-aging, whitening, soothing, acne, sunscreen, makeup and other basic skin care series, the current cosmetics production capacity of 400 million to 500 million yuan, plans to expand production in the second half of next year.
4. Investment advice: "recommended". The company has four major business units (pharmaceuticals, ginseng slices, cosmetics and bee products), which has realized the transformation and upgrading from "troika" to "four-wheel drive". The main pharmaceutical industry has been invited for tender.
5. Affecting the stabilization of growth, ginseng and cosmetics have become new profit contributors. Net profit in 2015 is expected to grow by 35-40% to reach 1.3-134 million yuan. The company's performance fell by 20% in the first quarter and continued to improve month-on-month after the second quarter. Considering the higher-than-expected promotion of cosmetics and the huge profit potential of ginseng slices, it is recommended to actively participate in bargain hunting. It is estimated that the net profit from 2015 to 2017 is 1.32,1.80 and 234 million yuan, and the EPS is 0.40,0.54,0.71 yuan. At present, the stock price corresponds to PE as 57X/42X/32X.
Risk hint
1. The promotion of ginseng slices and cosmetics projects is lower than the expected risk.
two。 Raw material price fluctuation and ginseng planting risk.
