This report is read as follows:
Guoguang is expected to postpone the launch of the chain by three weeks, with an IPO offering price of 4.65 yuan.
Summary:
According to the letter of intent of the Guoguang chain, the company's IPO expects to raise 188.5164 million yuan, offering underwriting and other expenses totaling 42.0306 million yuan, totaling 230.547 million yuan. In the audited 2019 annual report, the net profit attributable to the owner of the parent company is 100.2981 million yuan after deducting non-recurring profits and losses, and the diluted EPS is 0.20 yuan. It plans to issue 49.58 million shares, which is calculated at a price of 4.65 yuan per share based on the total amount of capital raised, and the corresponding PE is 22.98 times.
Corresponding to China Securities Industry (F52) nearly a month static PE is 19.15 times, Guoguang chain fund-raising price corresponding to PE is higher than industry PE, Guoguang chain is expected to postpone its offering by three weeks, and the IPO offering price is 4.65 yuan.
Guoguang chain is a leading local chain operator in Jiangxi, mainly engaged in the operation of chain supermarkets and department stores, based in Jiangxi Province, mainly selling fresh and food products. The company currently has 61 stores, including 41 in Ji'an City and 18 in Ganzhou City. The number of stores in Ji'an City and Ganzhou City far exceeds that of its competitors. In 2019, the company's operating income reached 2.527 billion yuan and net profit reached 114 million yuan, of which the main business income of Ji'an and Ganzhou accounted for 1.40% of the total retail sales of consumer goods in the two cities, which is in the leading position in the chain retail enterprises in the province. There is a strong first-mover advantage in the distribution of stores in the company. at present, it has covered the core section and main business district of the city, the mature stores account for a relatively high proportion, and there are two self-owned distribution centers in Ji'an and Ganzhou. the company's overall gross profit margin is more than 24%, higher than the industry average.
The rapid economic growth, demographic dividend and larger space of urbanization in Ji'an City and Ganzhou City, where the company is located, will further stimulate the development of the retail industry and promote the prosperity of the consumer market. so as to provide a broad market space for the further development of the company.
Considering the disclosure of the prospectus and the above analysis, we choose 603708.SH, 002251.SZ, 002697.SZ, 600361.SH, 601116.SH and 601933.SH as comparable companies with an average price-to-earnings ratio of 41.99. According to the reverse calculation of the amount of capital raised in the prospectus, the offering price of Guoguang chain is 4.65 yuan, corresponding to 22.98 times the net profit PE in the 2019 annual report. The valuation of Guoguang chain is higher than the industry PE, lower than the average PE of comparable companies, and is expected to be postponed by three weeks. It is estimated that the total share capital after the issue will not exceed 496 million shares, and the market value after the issue is estimated to be 2.304 billion yuan.
Risk hints: (1) the release rhythm of IPO is delayed by force majeure; (2) the risk of decline in the overall prosperity of the chain retail industry.
