Events:
1. The company plans to transfer 100% equity of Hainan Jiagu Industrial Co., Ltd. 2. The company plans to acquire Lirtix S.A. With US $82.3 million.
And Rondatel S.A. 100% of the company's shares; 3, the company's shares will resume trading tomorrow, and after the resumption of trading, it will continue to promote the acquisition of shares in Argentina and Hengyang cattle Company.
Divest off non-main business assets, enter the beef industry on a large scale through mergers and acquisitions, beef supply chain service providers rise!
After Shangheng Guantong became the largest shareholder of the company, the company began a series of asset sales to concentrate resources into the beef industry. It sold stakes and assets in a number of companies, including Honda New Continental, in 2016, preparing sufficient ammunition for its subsequent layout of the beef industry. This time, the sale of Hainan Jiagu Industries is a continuation of the company's strategy.
Lirtix S.A. And Rondatel S.A. All have high-quality overseas beef resources and rich experience in slaughtering technology. After the completion of the deal, the beef food industry will become one of the company's main businesses, and the company will adopt Lirtix S.A. In South America (a supplier of high-quality beef and mutton). And Rondatel S.A. Purchase high quality beef resources directly from the local area. Superimposed company in the domestic layout of the trade, processing, sales platform, as well as the acquisition of Lorsinal company, the company has set up a "overseas quality resources + domestic market" beef supply industry platform, in the future the company will continue to promote the acquisition of Hengyang cattle industry, further strengthen the company's layout in the beef industry, beef supply chain service providers are rising!
Consumption upgrading to promote the development of imported beef industry opportunities, the company's beef business performance is expected to high growth!
Consumption upgrading promotes the rapid growth of beef consumption demand. due to the limitations of domestic resources and varieties, domestic beef is difficult to meet the rapidly growing domestic beef consumption demand. Beef imports have increased rapidly in recent years, and imports are expected to reach 950000 tons in 2017. the growth rate is 17%. Under the background that the upgrading of domestic consumption promotes the high growth of beef demand, the foreign beef import industry ushered in a good opportunity for development! At present, the company has acquired 50% stake in Lorsinal, and in the second half of the year, it is expected to complete the acquisition of the assets of the cattle industry in Uruguay and Argentina, and to form coordination with the beef trade and processing business of listed companies, and the performance is expected to break out. It is expected that in 17-19 years, without considering the follow-up overall acquisition of Hengyang cattle, the company's cattle industry profit will reach 0.47pm 155ap295 million yuan, which will become the core driving force of the company's future performance growth!
The sharp rise in coal prices has boosted the company's high performance.
Supply-side reforms contributed to a sharp rise in coal prices in 2016. According to our estimates, for every 100 yuan increase in coal prices, the net profit contributed by each ton of coal will reach 36 yuan. In 2017, Yaxing Mine, the main mine, encountered earth coal seams, changes in coal quality, and an increase in expenses brought about by shutting down old mines. The company's coal profit is expected to be relatively limited in 17 years, with a profit of only 2000-30 million, but it has greatly improved from the loss of more than 40 million last year. In the past 18 years, coal is expected to bring the company a net profit of about 100 million yuan, which will lead to an increase of 0.12 yuan in EPS.
Give a "buy" rating:
It is estimated that in 2019, the net profit of the company returning to its parent will be RMB 1.9913Universe 447 million, an increase of 506.80%, 57.16%, 42.59%, and EPS will be 0.24, 0.38, and 0.55 yuan over the same period last year. Taking into account the expectation of the company's future acquisition of Hengyang cattle industry and the broad industrial space, it will be valued at 30 times in 18 years, with a target price of 11.4 yuan.
Risk tips: 1, coal prices fluctuate sharply; 2, future acquisitions are not as expected.