Main points of investment:
The company announced that it signed the "Strategic Cooperation Framework Agreement" with JD.com to carry out cooperation in the agricultural industry chain. The main contents of the agreement include seven aspects: 1. Product sales; 2. JD.com Farm Project; 3. Agricultural Research Institute; 4. Agricultural finance; 5. Sales of agricultural products; 6. Supply chain cooperation; 7. User cooperation
The two giants join hands to further promote "Internet + agriculture." The model of speeding up the development of Internet + in agriculture is also highlighted in the just released five-year Plan for promoting Agriculture with quality. This cooperation will focus on the front, middle and back end of the planting industry to carry out all-round and in-depth cooperation. The front end includes cooperation in agricultural finance. JD.com uses his financial products to provide financial services to Kim Jong-da's dealers and users to solve his difficulties in funding; the middle-end Kim Jong-da uses high-quality products and leading technology to provide full-process crop nutrition solutions and services to empower JD.com Farm. The back-end Kim Jong-da continues to explore the sales model of agricultural e-commerce through JD.com, the agricultural products sales of Kim Jong-da users and JD.com cooperative farmers and the deep cooperation of the supply chain.
JD.com + Kim Jong-da's resource advantage integration. JD.com gives full play to his advantages in supply chain, logistics, finance, big data, and so on, while Kim Jong-da gives full play to his advantages in products, agricultural materials channels, warehousing, and users to realize the decline of high-quality agricultural products and the uplink of agricultural products. It can also realize the warehousing and distribution of other kinds of e-commerce products from county to township, town and village, opening up the "last kilometer" of urban and rural resources.
The "Jinfeng Commune" model was promoted smoothly, and the "pro-soil No. 1" accelerated the layout of cash crops. Jinfeng Commune integrates upstream, middle and downstream resources, and provides farmers with a full range of planting services, including soil remediation, whole-process crop nutrition solutions, brand building, production and marketing docking, agricultural finance and other agricultural services. to create a new planting business model, cut into the trillion agricultural service market, it is estimated that about 170 Jinfeng communes have signed up and more than 120 have been set up. It is estimated that the targets for 19-20 years are 300,500 respectively, and the area of arable land served is expected to exceed 10 million mu. The full trusteeship model can reduce farmers' operating costs by 10% and 30%, and the model is becoming more and more perfect. At the same time, for cash crops, open up the blue sea market for soil improvement, the company has accelerated the market expansion of "pro-soil No. 1" over the past 18 years, making its series of products stand out in the greenhouse planting area.
Profit forecast and investment rating: cooperate with JD.com to further promote "Agricultural Internet +" and respond positively to the spirit of rural revitalization, strategic planning for promoting agriculture by quality and the spirit of the Central Committee's No. 1 document in 2019. From planting solutions, brand building and marketing of agricultural products, supply chain to agricultural services, agriculture big data and other links to further build the future modern agricultural framework, we maintain profit forecasts. It is estimated that the net profit of homing from 2018 to 2020 is 6.09,6.69 and 772 million yuan respectively, and the corresponding EPS is 0.19,0.20,0.23 yuan per share respectively. The current market capitalization corresponds to 42,40,34 times of PE.
