Event: Junyao Health plans to hold the second interim shareholders' meeting in 2022 on November 16 to consider the motion on changing some of the raised capital investment projects. the proposal intends to put the unused raised funds and special account interest from the "Jun Yao University Health Beverage Brand upgrading Project" into the bankruptcy reorganization Project of run Ying Biological Engineering (Shanghai) Co., Ltd.
Runying is a high-tech enterprise focusing on R & D, production and sales in the field of probiotics, a global probiotic industry solution provider, mainly engaged in R & D, production and sales in the field of probiotics. At present, it develops and produces more than 30 local probiotic strains in China, with more than 4000 probiotic strains with independent intellectual property rights. The products include probiotic powder and characteristic starter. Functional food and derivative products, highly active freeze-dried bacterial powder with an annual production capacity of 300 tons, is one of the large probiotic production bases in Asia, and the products are sold to more than 60 countries and regions.
The prosperity of the probiotics industry is high, and the domestic industrial chain needs to be improved. Under the background of stimulating consumption potential to support the construction of "double cycle", supply upgrading can drive and stimulate consumption potential, and there is the pursuit of functional functions such as improving immunity in the post-epidemic era, the probiotics industry has ushered in a golden period of development. Local probiotic enterprises are growing rapidly. At present, the separation between the upstream and downstream of the industrial chain is obvious, foreign manufacturers occupy a large number of domestic upstream raw material bacterial powder production and supply share, the domestic probiotic industrial chain needs to be improved, this reorganization will help the company to integrate and extend the industrial chain. for the company to cultivate "probiotics" series "second curve" products to provide technical support.
Through the upstream and downstream of the industrial chain, the focus of Junyao health work has shifted to the R & D end. After the reorganization, the two sides can complement each other in the industrial chain and sales channels, and open up the upstream and downstream links of the probiotic production industry chain. At the same time, Junyao Health can provide support in scientific research and production capacity to increase the market competitiveness in the field of probiotics. The bankruptcy reorganization project has a total investment of RMB 278.5559 million, the unused part of the "Jun Yao University Health Beverage Brand upgrading Project" which is to be funded by IPO, and the rest will be solved through its own funds, shifting the focus of work from the marketing side to the R & D side. After the planned reorganization, the annual sales of Runying will reach 1.32,2.67 and 531 million yuan respectively from 2023 to 2025.
Investment suggestion: the integrated project will help the company to open up the upstream and downstream of the probiotic production industry chain, and the two sides will form complementary advantages and further improve market competitiveness. It is estimated that the operating income of the company from 2022 to 2024 is 11.98,17.25 and 2.501 billion yuan respectively, the net profit is 1.16,1.89 and 262 million yuan respectively, and the EPS is 0.27,0.44,0.61 yuan per share respectively. Cover for the first time, give "buy"
Rating.
Risk hint: market competition aggravates the risk; raw material price fluctuation risk; consumer demand is lower than expected.
