Incident: On March 9, the company held the 12th meeting of the 5th board of directors to deliberate and pass the “Proposal on Transferring Remaining Claims and Related Transactions of Zhongyu Capital's Equity Repurchase Funds to Company Affiliates”. The company plans to transfer the remaining equity repurchase claims of Zhongyu Capital in RMB 300 million to the related party, Bama Investment Company in Jinhua City.
According to the company's announcement, Jinhua Bama Investment Company successfully won the remaining claim of Zhongyu Capital's equity repurchase price with a bid of RMB 300 million as the bidder. Jinhua Bama Investment Company is a shareholder holding 5% or more of the company's shares, and its executive partner Shi Yanjun is the company's chairman, so Jinhua Bama Investment Company is an affiliated legal entity of the company. The company transferred the above claims in order to protect the interests of listed companies, increase the certainty of fund recovery, mitigate risks, reduce the impact on the company, concentrate on its main business, and promote the company's sustainable and healthy development.
Focus on the development of the main business and enrich online channels. The company's main business focuses on the meat industry. Its main business consists of three major businesses, namely ham, specialty meat products, and personalized branded meat. At the same time, the company tested new products, entered the hot pot ham circuit, and continuously broadened the consumption scenario. The company's product structure has been optimized. On the basis of ham meat, it continues to expand its business areas and develop new products. The product matrix is rich, with a wide user base and large market space for products such as sausage, bacon, bacon, sauce, branded meat, etc. The superposition company vigorously expands online marketing channels and continuously improves the sales network, covering various channel platforms such as social e-commerce, live streaming, content e-commerce, fresh e-commerce, community group buying, and shopping, to cultivate the user base and consumer stickiness, improve marketing efficiency, and is expected to expand the company's revenue scale and achieve high profit growth.
Profit forecast and investment advice: The net profit attributable to the company in 2020 is expected to be affected by the amount of depreciation of remaining debt, but the company has taken appropriate measures to reduce the negative impact of this remaining debt on the company's finances. The company achieved a high increase in operating profit, focusing on the rapid development of its main business, continuously testing new products, and experimenting with Chineseization. The number of online channels is clearly being launched, and channel construction has been improved. Company procurement has advantages and is expected to smooth costs. We believe that the company will enter a period of rapid performance development in recent years. The company's revenue for 20-22 is estimated to be 7.67, 12.76, and 1,824 billion yuan respectively, net profit of 0.71, 227, and 301 million yuan, EPS is 0.07, 0.23, and 0.32 yuan respectively, and the corresponding PE is 66, 21, and 15X respectively, giving “recommendations”
ratings.
Risk warning: trade frictions, large fluctuations in pork purchase prices, new product sales falling short of expectations, slowing channel development and quantity of development falling short of expectations, asset impairment losses, uncertain effects of the epidemic, food safety issues, etc.