Recently, we have investigated the two-sided needle. From the company's research, the company's strategy is clear: focus on the daily chemical industry with traditional Chinese medicine toothpaste as the core, integrate the company's industrial plate, optimize the company's industrial structure, increase resource investment, reshape the Zanthoxylum nitidum brand, and maximize the value of the company.
Since the second half of last year, under the leadership of Chairman Zhong Chunbin, the company has carried out a series of integration and adjustment of daily chemical business. On the one hand, the company integrates and manages the same and similar daily chemical business. The company attaches great importance to daily chemical business. The adjusted daily chemical business is directly managed by President Lin Zhuohuang. In order to adapt to the business development, Dahi Chemical Group has set up a new marketing center and other departments, and optimized the management chain, which has laid a good foundation for the efficient operation of Dahi Chemical Business.
This year, the goal of the toothpaste business of "Zanthoxylum" brand is to make a breakthrough in some areas and strive for three years to open up the situation. Gradually focus on investment in Guangxi, Guangdong, Jiangsu, Hubei and other areas where Zanthoxylum nitidum has certain advantages. In the marketing advertising cooperation with a number of companies, marketing advertising this year will increase the investment budget, if the market response is good, the company will also make corresponding adjustments according to market conditions. Now the difficulty is that the cost of hypermarkets and supermarkets is too high, and the company is looking for ways to break through terminal sales, such as entering hypermarkets through dealers, or trying other ways to cooperate with dealers and supermarkets. In addition, after the fixed additional funds are in place, it will help to alleviate a large number of capital needs of the company in channel and brand construction. The company attaches importance to the construction of network marketing, and the network marketing team operates in the import and export company to strive for certain achievements this year. The share of sales of new products increased in the first quarter of this year. Other daily chemical products are partly produced by the company and partly outsourced according to market conditions.
Due to the impact of the macro environment and the downturn in industry demand, the pulp price has not come out of the trough and continued to lose money. The company is also working hard to change the situation of persistent losses through technical transformation, adjustment of product structure (household paper project) and so on. Equity incentive is a legacy of non-tradable share structure reform. According to the relevant regulations of the CSRC, the company is in continuous communication with major shareholders and Liuzhou SASAC, and relevant matters will be disclosed and implemented in accordance with the provisions of the CSRC. The company has not yet received a reply from Liuzhou SASAC on this matter.
In other businesses, sucralose subsidiaries account for 35%. There are plans to expand production, but it needs to be discussed with the other four shareholders. The main products of Yikang Pharmaceutical Industry are API and Ginkgo biloba leaves.
We estimate that the income of Zanthoxylum nitidum from 2014 to 2015 is 1.426 billion yuan and 1.716 billion yuan respectively, an increase of 12.45% and 20.32% over the same period last year, and the net profit is 34 million yuan and 67 million yuan, an increase of 244.09% and 100.54% respectively over the same period last year, corresponding to 0.07 yuan and 0.15 yuan for EPS. Maintain the "overweight" rating.
Risk hints: the additional issuance project failed to be implemented; the promotion of new toothpaste was lower than expected, and the cost during the promotion of new products rose sharply, affecting the company's profits; assets such as the paper industry or sustained losses were a drag on the company's performance; large-scale expansion of production in the sucralose industry may lead to a sharp drop in prices, affecting the company's profits.