Introduction to this report:
The company's main business in the agricultural wholesale market is growing steadily, the revaluation value of the logistics park's land assets is rich. The “Chinese cabbage+” e-commerce platform, supply chain services and private brand building have helped transform and upgrade and consolidate competitive advantages. National reform is expected to help unleash potential.
Key points of investment:
6. Investment advice: The main business of the agricultural approval market is growing steadily, and the land revaluation value is rich. EPS is expected to be 0.1/0.1/0.12 yuan in 2019-2021. Since the company's long-term losses after deducting non-profits and long-term losses are not suitable for using the PE valuation method, PB valuation is used to refer to comparable companies and consider the company's asset revaluation value to give 2 times PB. The target price is 5.8 yuan. The target price is 5.8 yuan, covering it for the first time, and increasing its holdings cautiously.
7. Deeply involved in the main business of the agricultural wholesale market, and its scale and brand advantages are prominent. The company operates and manages more than 40 agricultural product logistics parks in more than 30 large and medium-sized cities including Shenzhen, Beijing, Shanghai, Tianjin, Chengdu, and Changsha, and has the largest agricultural products wholesale market in China. Haijixing, a subsidiary of the company, is the only project consulting company in China that specializes in agricultural market project design, planning, operation, management and brand promotion. Its brand advantages are outstanding. Profits in mature markets grew steadily, and sales of stores in the Xinnong Wholesale Market and the implementation of projects under construction such as Anqing Jixing and Nanfang Logistics continued to drive performance. The revaluation value of the company's agricultural market assets far exceeds the current market value. If national reform progresses, it is expected that growth potential will be unleashed.
8. Build a “Chinese cabbage+” e-commerce platform to promote the transformation and upgrading of physical wholesale markets. The company took the lead in exploring the construction of a “Chinese cabbage+” e-commerce platform, integrating data resources from the national agricultural products wholesale market, and on this basis, accelerated the upgrading of R&D and system restructuring of application platforms such as stall management, smart food safety, smart HygiStar, and unified settlement, built a cloud data platform, and promoted the application of developed information systems in mature markets to further improve efficiency and competitiveness.
9. Build supply chain services and explore high-value-added, high-margin services and products such as private brands. In recent years, the company has accelerated the integration of industrial chain resources, enhanced capacity building for agricultural product supply chain services such as brand cultivation, supply chain services, and urban distribution. At the same time, it has accelerated the establishment of its own brands and channels in key markets in cities such as Shenzhen, launched the “Shenzhen Agricultural Star Selection” and “At the Time of Zhen” fresh food brands, and actively cooperated with new retail enterprises to enrich profitability and enhance competitiveness.
10. Risk warning: E-commerce and modern channels diversion of agricultural markets, large exchange rate fluctuations, etc.