Zhongju Hi-tech (600872): No substantial impact on performance management Reform dividends are still being released

Zhongju Hi-tech (600872): No substantial impact on performance management Reform dividends are still being released

Event: Zhong Ju High-tech released an announcement that the company’s acquisition of the minority shareholders’ rights and interests of Chubang has a final arbitration. The final arbitration result: (1) Confirmation of the “Guangdong Kitchen State Food Co., Ltd. equity” between Langtian Huide and Zhong Ju High-tech”Transfer Agreement” has no legal effect; (2) rejected all counter-arbitration claims of Zhong Ju Hi-Tech; (3) the arbitration fee of this case in this case was RMB 2,243,550, and Langtian Huide and Zhong Ju Hi-Tech assumed 50% each, namely RMB1,121,775元 元;(4)本案反请求仲裁费为人民币2,457,750元,全部由中炬高新承担。
  Key points of investment The common causes of the minority shareholders of Kitchen State are: (1) In 2012, in order to expand and strengthen the Kitchen State brand, the company established Kitchen State in Yangxi to build a delicious fresh kitchen state food production base in Yangxi and implement expansion measures in different places.Strategy, total project investment is 14.

9.8 billion yuan.

Among them, the delicious fresh company holds 80% of the shares, and the date of investment is 20%.

At that time, Zhongshan Natural Gas was gradually saturated, and Kitchenbond would become an important part of the company’s long-term performance. 杭州桑拿网 At that time, after the establishment of the plan, the sales profit rate before tax reached 12 after production.

67%, 15-year expectations are 10.

95%.

  (2) In March 2019, the company announced that the delicious fresh company intends to acquire 20% of the equity of the delicious fresh holding subsidiary Kitchen State Company held by Langtian Huide.

As of the end of 2018, the total equity value of the company was 25.

28 trillion, corresponding to a 20% equity value of 5.

The transaction price was RMB 5.57 million, and the transaction price was gradually determined to be RMB 3.

400000000.

After the transaction is completed, Kitchen State will become a wholly-owned subsidiary of Delicious Fresh.

  The arbitration results will not have an impact on the main business of Zhongju Hi-tech: Zhongju Hi-tech’s current main business is stable, and the interests of delicious and fresh companies are also stable.The growth rate can be expected.

The state’s minority shareholder structure will not affect the company’s operations.

(1) The current leadership is stable.

The change of personnel is mainly due to the size of the parent company, improving and optimizing the internal structure of the company, and improving the efficiency of implementation, while Zhang Weihua is still in charge of the delicious company.

The parent company conducts daily supervision of the logistics, personnel, procurement, administration, and finance of the kitchen company to promote internal efficiency.

(2) Enhance the intensity of incentives.

The company released the management and performance evaluation management system for core managers in 2019, which further improved the double growth of quality income and profit, and promoted the completion of higher targets for incentives.

(3) Expected release of performance.

From the perspective of capacity, products and channels, the company’s revenue is expected to enter an accelerated period in the next few years, and the transformation of Yangxi’s scale effect will continue to show + the company’s reform measures will show its effect + increase the cost control efficiency, and the profit margin will also be earlierRoom for improvement.

(4) It is expected that the company will continue to recover the minority equity of the company for active negotiation in the future.

  Investment advice: We predict that the company’s revenue will increase in 2019-202113.

2% / 20.

7% / 20.

6%; net profit grows by 20 per year.

6% / 29.

2% / 23.

5%; EPS is 0.

92/1.

19/1.

47 yuan / share (for the time being ignoring the redistribution of minority shares in Kitchen State), the corresponding PE valuation is currently expected to be 41.

0/31.

7/25.

7 times, give Buy-A rating.

  Risk warning: Condiment sales fall short of expectations, company reforms fall short of expectations, and regional expansion falls short of expectations