Core ideas:
On May 21, 2021, the company signed an equity acquisition intention agreement with 7 bids, intending to acquire 80% of each of the 7 bids. May 21, 2021 The company and the target company-Shenzhen Sanpu Natural Cosmetics Co., Ltd., Jiangxi Juhe Electronic Commerce Co., Ltd., Jiangxi Jumei Electronic Commerce Co., Ltd., Jiangxi Meizhimiao Electronic Commerce Co., Ltd., Jiangxi Hehe Industrial Co., Ltd., Jiangxi Renhe Da Health Technology Co., Ltd., Jiangxi Jin Hengkang Biotechnology Co., Ltd. and all its shareholders jointly signed the "Equity acquisition intention Agreement" It is proposed to acquire 80% of each of the above seven bids. Part of this acquisition constitutes a related party transaction, but does not constitute a major asset restructuring.
The company's business covers the research, production and marketing of cosmetics / skin care products, medical devices / health care equipment, health food and other large health-related products, indicating that the company's business coverage will gradually expand to the large health field in the future. Shenzhen Sanpu is mainly engaged in the R & D and production of cosmetics, skin care and hair care products, Jiangxi Juhe is mainly engaged in the sales of cosmetics, skin care and hair care products, Jiangxi Renhe Da Health and Jiangxi Jinhengkang are mainly engaged in the R & D and production of large health products. Jiangxi Jumei, Jiangxi Meiqiao and Jiangxi Hehe are mainly engaged in the sales business of health-related products. This acquisition marks that the company's future business will gradually expand to the big health field, and the business structure will be further diversified.
Due diligence and other work will be completed within 30 working days after the signing of the agreement, and the acquisition method and price need to be further confirmed. Within 5 working days after the completion of the due diligence of the target company, the joint confirmation of the equity agreement with the target company, the implementation of the decision-making process and the completion of the corresponding audit and asset evaluation, the two parties will formally sign the equity transfer agreement.
The expected results for 21-23 years are 0.50 yuan per share, 0.57 yuan per share and 0.66 yuan per share respectively. Corresponding to PE valuation 20.07x/17.47x/15.21x. As the financial data of the underlying company has not been disclosed in this announcement, the profit forecast will not be raised for the time being. Considering the further diversification of the company's business and the gradual transformation to the big health field in the future, and with reference to the comparable company valuation, we think it is appropriate to give the company an PE valuation of 23 times in 21 years, with a "buy" rating corresponding to a reasonable value of 11.50 yuan per share.
Risk tips. The progress of the acquisition was lower than expected; product sales fell short of expectations as a result of increased competition in the industry.