Events:

The company announced on November 26th that it intends to issue no more than 160 million (including 160 million) A shares to the public. The targets are Shenzhen Jinsu Asset Management Center (limited partnership), Shenzhen Jinwu Equity Investment Center (limited partnership) and Shenzhen Jinhui Equity Investment Center (limited partnership). The offering price is 5 yuan per share, and the total amount of funds raised does not exceed 800 million yuan. It is intended to be used to repay bank loans and replenish liquidity. The non-publicly issued shares of the company to the issuing party shall not be listed for trading or transfer within 36 months from the date of completion of the issue.

Comments:

1) as an established consumer brand enterprise, Weiwei shares have outstanding brand strength and channel strength, and solid fundamentals. The traditional soy milk business is growing steadily, and the plant protein beverage is growing at an annual rate of more than 15%, which is the fastest growing sub-sector in the entire beverage industry. Third-line liquor Zhijiang and Guizhou Chun are in line with the trend of mass consumption. Under the background of industry adjustment, we judge that the income scale has declined slightly, and the overall steady growth of Weiwei's three major pieces of food business.

2) based on the website information of Goldstone Investments Company: Goldstone Investments (one of the objects issued by Dingzeng) has rich investment experience and has successfully invested in consumer goods enterprises such as Sanquan Food and Chinese starch. At the same time, as the actual controller of Goldstone Investments, Mr. Wu Qianghua has more than ten years of experience in capital operation.

3) after replenishing the circulating funds, the company is likely to carry out extension expansion. In the history of Uygur, the capital operation ability is strong, and it has acquired Zhijiang, Guizhou Chun and Yiqingyuan tea respectively, and can do a good job in management output and corporate culture integration in the short term to generate profits quickly. We speculate that the purpose of Weiwei's massive replenishment of liquidity is still extension expansion, focusing on consumer goods.

Profit forecast and valuation. In view of the prospects of the protein beverage industry and the expectation of mergers and acquisitions, we are optimistic about the future development of the company, considering dilution and possible acquisitions, and forecast revenue of 47.58\ 61.39\ 7.162 billion for 14-16, compared with-6%\ 29%\ 17% for the same period last year. We believe that the company's short-term PE is higher, but the future performance of high growth is more likely, not rating for the time being.

The main uncertain factors. Failed acquisitions, food safety issues, liquor fundamentals decline.