Events:
The company released its semi-annual report in 2019, with revenue of 2.014 billion in the first half of 2019, an increase of 41.72% over the same period last year, and a net profit of 53 million, an increase of 936.34% over the same period last year.
1, the sales force, the revenue growth rate reached a 10-year high. After the new management team took office, the grain and oil products sector made every effort to promote the construction of a new retail sales platform, with remarkable results. Progress has been made in the business cooperation between 2019H1's grain and oil products and Xingsheng optimal selection, BABA Retail pass, JD.com 's new channel, etc., and the strategic cooperation with Xingsheng Optimum in April has become the main growth point of grain and oil product sales. The revenue of 2019H1 grain and oil products increased by 40.83% compared with the same period last year, and the company's revenue growth rate reached a 10-year high.
2. The reform has achieved remarkable results, and the rate of three fees has reached a 10-year low. At the beginning of taking office in 2018, the new chairman of the company proposed internal reform, using market-oriented means to innovate the operation and management mechanism. Internal reforms were carried out from the aspects of staff incentives, internal process streamlining, business cost reduction and efficiency efficiency. The three-fee rate of 2019H1 Company was 8.23%, a new low in 10 years, and the reform was fruitful.
3. The divestiture of non-performing assets has been completed, and the performance has been reduced and the losses have been reduced. Jinjian Pharmaceutical Co., Ltd., as a subsidiary with the largest loss in the past, has high debts. On March 30, 2019, the company officially sold 100% of Jinjian Pharmaceutical Co., Ltd., this successful divestiture to achieve performance reduction, focusing on the main grain and oil industry. 2019H1 achieved a profit of 50.34 million yuan from equity transfer.
Profit Forecast:
The loss of Jinjian Pharmaceutical Industry from 2016 to 2018 dragged down the net profit of about 10 million per year. The 100% equity transfer of Jinjian Pharmaceutical in March 2019 brings 55.03 million of the company's investment income in 2019 and reduces losses by about 10 million per year in 2019 and 2021. In addition, the transferee of the equity transfer will undertake the debt of 299 million yuan owed by Jinjian Pharmaceutical to the parent company, and will have to repay the company's debt of not less than 257 million yuan in the first year after the transfer. After paying off the debt, the transferee will bring a cash increase of not less than 257 million to the parent company, which is expected to bring about 10 million interest income to the company every year. The combination of the above three aspects is expected to significantly increase the company's net profit in the next three years. At the same time, based on the improvement of the company's management efficiency, the entry into new retail areas, and the benefit of the Hunan Provincial "Revitalization of Xiangmi" project, we expect the company's 2019 / 2020 / 2021 net profit to be 85 million / 60 million / 80 million.
Risk Tips:
1. Macro environmental risk. The company's main grain and oil business is greatly affected by the macro environment, such as policy adjustment, tax rate and exchange rate changes, and the relationship between supply and demand. The adjustment and changes of the relevant macro environment will have a significant impact on the company's product profit space, and there are many unpredictable factors.
two。 Market competition risk. With the acceleration of the process of agricultural supply-side structural reform and the strengthening of merger and integration in the industry, the leaders of related industries speed up the market layout by virtue of abundant funds, resources, brands and other advantages, and the market competition faced by the company is more fierce.
3. Quality and safety risk. Due to the wide range of grain and oil industry and the long industrial chain, there are many uncontrollable factors, which may have a significant impact on the company.
