This report is read as follows:
With the omni-directional sinking of the company's aquatic products in 2020, the company is expected to share the industry's high growth dividend and its own profit inflection point with its leading advantages, and its performance is expected to usher in an upward inflection point.
Main points of investment:
As the company's aquatic food channel sinks in all directions in 2020, the company is expected to share the industry's high growth dividend and its own profit inflection point with its leading advantage, and its performance is expected to usher in an upward inflection point.
We estimate that the EPS of the company in 2019-2021 will be-0.09,0.17,0.29 yuan respectively, and give the company 37 times PE in 2020, corresponding to the target price of 6.3yuan, covering for the first time and "increasing its holdings".
Rating.
The company's domestic market is expected to usher in an upward inflection point in 2020. Core logic: 1) the epidemic situation of COVID-19 accelerates the consumption of chilled e-commerce, and the company, as the leader of aquatic food, benefits from the industry dividend.
2) the company's "eight positions" have been put into use, the channels have sunk, domestic sales are expected to maintain high growth, and performance is expected to rise in both volume and profit. 3) the related transactions with Yonghui supermarket are expected to reach 500 million in 2020.
The company has an obvious competitive advantage in transforming the aquatic food business. The details are as follows: 1) in terms of products, the company has a global procurement system and food safety is controllable. 2) in terms of brand, the company has 7 Fortune 500 customers in the world and 8 Fortune 500 customers in China, and the B-end brand recognition is strong; at the same time, the sales volume of the company's e-commerce platform has maintained high growth and has brand influence. 3) in terms of channels, after the company's "eight warehouses" are put into use, the channel will sink in all directions in 2020, leading the industry to build aquatic food leaders.
With the acceleration of fresh e-commerce, the company is expected to benefit from the industry dividend. The epidemic situation of COVID-19 accelerates the development of fresh e-commerce platform, and fresh e-commerce is attacking the fortified areas of aquatic products in deep water. As a domestic shrimp fresh food supplier, the company is expected to fully benefit from the industry dividend brought by fresh e-commerce.
Risk hint: COVID-19 epidemic prevention and control progress is not as expected may bring performance and procurement impact.
