Brief comment
The development of oil and food ensures the steady growth of the company.
From January to May 2016, the company's revenue from raw grain, oil and food sectors accounted for 45.02%, 47.50% and 7.48%, respectively, and gross profits accounted for 21.10%, 47.69% and 31.21%, respectively. This time, the business plate of Beijing Food Co., Ltd., which will be placed in the listed company, is the oil sector (processing and sales of vegetable oil and oil) and the food sector (snack food and bread).
Its subsidiaries mainly include Beijing Grain Tianjin, Eisen Lubao and ancient ship oil, ancient ship oil ancient coin branch, Zhejiang Little Prince, ancient ship bread and so on. Beijing grain Tianjin is mainly engaged in the production and sales of first-class soybean oil and soybean meal; Aisen Lubao and Gushan oil are mainly engaged in the production and sales of soybean oil and small varieties of oil such as corn oil and sunflower oil; the main products of Guyao Oil Ancient Coin Branch are sesame oil and sesame sauce; the main products of the Little Prince of Zhejiang are potato chips, French fries and expanded food and pastries, and Guyun Bread Company is a supplier of bread to KFC in North China. Fat and food are also the two most profitable sectors of the company, and these two main businesses will ensure the steady and rapid growth of the company.
Soybean oil focuses on Beijing, Tianjin and Hebei, with sufficient production capacity, reducing costs and increasing profits.
At present, the company's soybean oil products are mainly produced and sold by subsidiary Beijing Food Tianjin. The production capacity of Beijing grain Tianjin virgin production line is 1.2 million tons, the utilization rate is about 75%, the refining production line capacity is 420000 tons, the utilization rate is about 50%, and the filling production line capacity is 237800 tons, the utilization rate is about 25%. In addition, Beijing Grain subsidiary Eisen Lubao and Gushan Oil also have some soybean oil and non-transferable soybean oil products. These two subsidiaries currently have refining production capacity of 60,000 tons, utilization rate of about 15%, and filling production capacity of 100000 tons. Utilization rate is about 70%. In the future, all the tasks of soybean oil refining will be transferred to Tianjin, which has a lower production cost, so as to improve the profit margin of soybean oil.
The company's edible oil brand is mainly composed of Lubao, ancient ship, Firebird, ancient coin and so on. Among them, Lubao is a highly profitable product brand, ancient ship and Firebird are market product brands, and ancient coins are mainly sesame oil and sesame sauce brands. The company's soybean oil and peanut oil products are mainly sold in Beijing-Tianjin-Hebei region.
At present, the Beijing-Tianjin-Hebei region has a resident population of about 110 million, with an average annual consumption of about 2.6 million tons of edible oil and a market size of about 400-60 billion yuan. Beijing grain oil will have a broad space for development in the Beijing-Tianjin-Hebei region in the future.
Small variety of oil is the focus in the future, facing Beijing and Tianjin to promote profitability.
Aisen Lubao and Gushan Oil will focus on small varieties of oil, such as sunflower oil, corn oil, camellia oil and other high gross margin products, and then gradually transfer soybean oil products to Beijing Food and Tianjin, the output of small varieties of oil will be higher. In 2015, the company produced 4000 tons of sunflower oil, 2700 tons of corn oil, 2300 tons of peanut oil and 2300 tons of blended oil, which is not too large, but with the strengthening of the company's support for small varieties of oil, it will be increased more rapidly.
In addition, the sesame oil and sesame paste products of the ancient ship oil and ancient coin branch also have high visibility and high profitability. at present, the annual production capacity of sesame oil is 3000 tons, sesame paste annual production capacity is 1000 tons, and the capacity utilization rate is 80%. With the improvement of the company's corresponding production capacity in the future, sesame oil and sesame paste products will also become an important source of profit for the company.
The company's small variety of oil is mainly aimed at the urban areas of Beijing and Tianjin with relatively high consumption power. In the future, the proportion of small variety oil in the company's oil plate will gradually increase, leading to a steady increase in the overall gross profit margin of the company's oil plate. At present, the gross profit margin of the oil plate of the company is about 4.8%. Compared with the original soybean oil products of Dongling (2.6%) and the small variety oil of Xiwang Food (28.4%), with the increase of the proportion of small varieties of oil, the company has more room for increase in profitability of the oil sector in the future.
Profit forecast and valuation
After the successful completion of this restructuring, it will further strengthen the company's profitability, improve the company's growth, complete the transformation of the main business of listed companies, and become a new model for the reform of state-owned enterprises in Beijing. The company's oil sector will be based on Beijing, Tianjin and Hebei, continue to expand outward, and improve profitability through the transformation of product structure, and the revenue and profits of this sector will increase significantly in the future. Beijing Grain shares promised to deduct non-return net profits of 124 million yuan, 130 million yuan and 150 million yuan respectively from 2016 to 2018. Combined with the annual net profit of 100 million yuan for land restoration related projects announced by the company a few days ago, Beijing Grain shares will reach a net profit scale of 2.5-300 million in 2017 and 2018. The target price is 16 yuan to maintain the overweight rating.