Hengshun Vinegar Industry (600305): New peaches are replaced with old ones.
Event: The company announced the change of chairman on December 14, 2019, and voted at the extraordinary extraordinary general meeting on January 10, 2020.
Investment Ratings and Estimates: Maintaining 2019-21 Revenue Forecast18.
700 million, an increase of 10 each year.
3%, attributable to the mother’s net profit forecast 3.
7 billion, a year-on-year increase of -0.
8%, corresponding to 2019-21 EPS is 0.
47 yuan, the latest closing price corresponding to 2019-21 PE is 42, 40, 35 times, respectively, maintaining an overweight level.西安桑拿论坛
As a leader in the vinegar industry, the company expanded to overcome the space under the background of low industry concentration and continuous promotion of consumption upgrade. At the same time, the company’s personnel adjustment was implemented. After the new chairman took office, he tried to implement a series of reform measures.Track the company’s strategic adjustments.
Personnel mobilization opens up the potential for innovation and the release of leading potential achievements: This personnel mobilization was made by the Zhenjiang Municipal Party Committee from the overall situation, according to the needs of the work and the actual decision of the group’s leadership team, reflecting the local government’s commitment to reform, innovation and expansionHengshun’s determination.
The new chairman of the board, Mr. Hang Zhuhong, participates in the secretary-general of the Zhenjiang Municipal Government, which can provide effective help for the company to coordinate social resources and democratic design, and help many companies to solve difficult problems during his tenure, and has experience in economic work.
In addition, the new chairman will deepen the reform of Hengshun’s marketing system, product structure and incentive evaluation.
If under the leadership of the new chairman, the overall system restraint can be adopted and a more market-oriented approach will be adopted, Hengshun is expected to start the acceleration of revenue performance, consolidate the leader of the vinegar industry and catch up with other comprehensive condiment companies.
Channel transformation and category expansion are steadily advancing, but the growth rate still has the potential to increase: Transform the company to actively promote channel transformation: 1) Expand the development of foreign port markets, increase sample cities such as Wuhan and Hangzhou; 2) Layout catering channels and develop and apply them to the catering marketLarge-scale products; 3) through the internal activation of the sales team enthusiasm and synchronized ground air marketing.
In addition to the main business of vinegar, the company is also increasing the layout of cooking wine, soy sauce and other categories. The prominent cooking wine will continue to grow at a high double-digit rate in 2019, and its long-term growth is good.
Although the company’s profits have remained stable, it has a deep brand heritage and quality foundation. If there is a marginal improvement in mechanism and marketing, future growth will accelerate.
The vinegar industry has a golden track, but the layout is scattered, and Hengshun’s expansion and improvement space is considerable: At present, vinegar products are still mainly based on cooking and dining scenes, so it has the potential for diversified consumption scenarios.
At the same time, benefiting from the health attributes of vinegar and the consumer’s health concept, new product development such as high-end vinegar, health vinegar and beverage vinegar can also open up space for the increase of vinegar industry.
From a horizontal comparison of soy sauce, the vinegar industry is still highly fragmented.
As the industry leader, Hengshun may have deep brand heritage, superb brewing technology and high-quality product quality, so its core advantages are significant.
With the implementation of personnel adjustments, the introduction of new expectations to streamline internal mechanisms, improve channel combat effectiveness, and expand foreign port market development efforts, as a result, Hengshun’s share of room for improvement is considerable.
Advanced catalysts: Company system and mechanism improvement, quarterly 武汉夜网论坛reports exceed expectations Core assumptions risks: performance expectations, increased industry competition