This report is read as follows:
The company makes great efforts to distribute overseas markets, and its grain trade, beef cattle and dairy products are connected with global resources and domestic markets. after the completion of this business layout, the company is expected to achieve rapid growth.
Main points of investment:
Profit forecast: the company makes every effort to build the three main businesses of grain trade, beef cattle and dairy products, with clear strategic objectives. We estimate that the EPS of the company from 2019 to 2021 will be 0.02 yuan / 0.02 yuan / 0.02 yuan respectively, and the average target price will be 1.95 yuan according to the relative valuation method and absolute valuation method, corresponding to 97.5 times PE in 2019, which will be rated as "prudent overholdings".
The development blueprint is now available, and the industrial layout is overseas: the company implements the development strategy of "industry plus finance, investment plus mergers and acquisitions, overseas resources docking with the domestic market", and increases the acquisition of overseas resources. Among them, Brazil distributes grain trade and agricultural materials, dairy products rely on New Zealand pastures, and beef cattle projects are based in Laos and Vietnam; the company uses the advantages of overseas resources to dock with China's potential market, and is currently in the stage of rapid production capacity layout. in the future, with the completion of business layout, the company is expected to achieve rapid growth.
The three main businesses are ready to go: in 2018, the company has clearly defined the overall development strategy, identified the three main industries based on grain trade, beef cattle and dairy products, and put forward the strategic path of deep ploughing and positive transformation. Among them, the grain trade sector aimed at Brazilian soybean resources, achieving the first breakthrough in China-Brazil agricultural trade business this year; dairy products in New Zealand, high-quality milk sources are very competitive in the domestic market; and beef cattle business has made a breakthrough. strive to achieve an annual slaughtering capacity of 200000 by 2019. The three major businesses are ploughed at the same time and are expected to achieve the outbreak of profit growth points in the future.
A number of businesses to help the company's development: the company at the same time to carry out mutton sheep business, food distribution business and other business to help the company's diversified development. Among them, the performance of mutton sheep business in 2018 is eye-catching, and the sales price of breeder sheep ranks among the forefront in China, turning losses into profits of 13.4309 million yuan during the year, the development of mutton sheep industry is expected in the future, and the food distribution business is also performing well.
Risk tips: natural disaster risk, overseas business risk and exchange rate fluctuation risk.