White feather broiler integrated enterprise, leading in deep processing ability
The company is the second largest integrated production enterprise of white feather broiler in China, the industrial chain covers chicken seedlings, raw chicken products and deeply processed chicken products, starting with chicken products agent processing, and gradually transforming to self-food processing. The overall operation of the company is stable, with an operating income of 1.904 billion yuan (+ 13.08%) in the first half of 2020, of which the business income of deeply processed meat products was 822 million yuan, accounting for 43.20%. In the future, the company will continue to expand the production capacity of deeply processed chicken, seize the new opportunities for the development of the domestic white feather chicken industry to downstream catering and food links, and develop the domestic market. The company has focused on building its own brand for many years and has entered the stage of sales volume. From 2020 to 2022, we estimate that the net profit of the company belonging to ordinary shareholders is 1.77515max 836 million, EPS is 0.17max 0.49max 0.80 (fully diluted with the latest equity), and the current share price is 16.9max 5.83.6 times PE respectively. Comparable company valuation, the company's PE is lower than the industry average, covering for the first time, giving a "buy" rating.
The industry has changed from foreign exchange earnings from exports to domestic consumption, and enterprises in the new stage have transformed to integration. In the 1980s, the white-feather broiler industry entered China, which was led by the government, with little domestic consumption. As the international fast food giants have entered the country one after another, the domestic consumption market of white-feathered broiler has gradually formed. The consumption level of residents has increased, the demand of the downstream catering industry has increased, and the consumption of white-feathered broilers has maintained a relatively high growth rate, with an average annual growth rate of about 7%, which is higher than the average growth rate of 5% for yellow-feathered chickens. It is expected that the white feather chicken will gradually become the dominant poultry meat consumption in the future. In this context, the company actively explores the deep processing links with stronger profit stability, while actively developing to the C-end, which effectively suppresses the impact of product cyclical fluctuations on the company's performance.
The company's whole industry chain aquaculture escort, channel and brand coordinated development company controls the whole process from farm to table, product quality is guaranteed, and has a market-oriented R & D system to develop new products on demand. In the construction of marketing channels, the introduction of consumer goods team for product promotion, the positioning of each brand is clear, the target population of the main brand "excellent shape" pursues health, while "Fengxiang" is driven by delicacy. During the double 11 period in 2020, the sales of "Youxing" and "Fengxiang" increased by 70.5% and 548% respectively compared with the same period last year.
On the basis of the success of "excellent shape", we will lay out the field of healthy and leisure snacks and incubate the popular style item "one mouthful can't bear the gut".
Risk tips: epidemic risk, feed cost fluctuation risk, food safety risk.