Event: recently, the company signed a "Cooperation Framework Agreement" with Nanjing Fruit Food Co., Ltd. and its actual controllers, Mr. Jiang Yuejun and Ms. Cai Liqun, which stipulated the mode of cooperation, time arrangement, investment intention fund management and so on. Under the condition of meeting the transaction conditions, the ancestral name or its holding subsidiary intends to invest in Nanjing fruit by means of increasing capital into shares or accepting the shares of the original shareholders (one of them or a combination of two). It marks a substantial step for the company to explore the mode of investment expansion.
The synergistic effect is significant and the development benefits are shared. 1. As for the local brand, the ancestral name, as the leader of fresh bean products, has obvious advantages in capital, brand and management. The ancestral name carries out management output and mode grafting, and strengthens the market competitiveness by updating equipment and improving the information system. 2. For the ancestral name, the company can make use of the existing plant and equipment of the local brand to achieve product production, quickly open up the market with the help of channel resources, and achieve the rapid growth of sales scale in a relatively short time.
The recognition of the brand in different places is limited, and the heavy asset factory building model may not be desirable. 1. Consumers' tastes and brand recognition are different in different regions, and remote brands also need long-term accumulation in order to gain consumer recognition. 2. When a factory is built in a different place in an economically developed area, the investment in land, plant and equipment is huge, the operation and management is more complex, and the operation risk is higher under the heavy asset mode. 3. After the expansion of the factory built in other places, the company needs to re-establish distribution channels and dealer resources. The brand influence of the company's brand outside the Zhejiang base is limited and needs to be cultivated for a long time. 4. As a new brand, it will compete directly with local brands, and its profitability is under pressure under the background of fierce competition.
The management is firmly determined to expand and has taken substantial steps towards external expansion. 1. The management is determined to expand, actively seek to get out of Jiangsu, Zhejiang and Shanghai, and the cooperation with Nanjing fruit is an important step for the company. If the follow-up cooperation can be carried out smoothly, the company is expected to further expand its market share in the surrounding areas of Jiangsu. Enhance the company's sustainable growth and market competitiveness, consolidate the company's leading position in the industry. 2. This investment expansion will help the company to accumulate experience in external expansion; if it goes smoothly and achieves outstanding results, the company's revenue is expected to accelerate significantly, and the logic of medium-and long-term development will be further strengthened.
Profit forecast and investment advice. It is estimated that the company's 2021-2023 net profit will be 110 million yuan, 160 million yuan and 220 million yuan respectively, and will maintain a compound growth of 30% in the next three years. Based on the company's leading fresh bean products, foreign investment or merger projects have taken substantial steps to enter a period of rapid expansion and maintain a "buy" rating.
Risk hint: the project landed or failed to meet expectations.
