China Torch High-tech (600872) 2019Q1 performance evaluation: the performance is slightly higher than the market is expected to enter the accelerated growth channel

China Torch High-tech (600872) 2019Q1 performance evaluation: the performance is slightly higher than the market is expected to enter the accelerated growth channel

Guide to this report: Performance is slightly higher than market expectations.

Category diversification and expansion Weak cultivation of the weak market, the condiment business grew steadily in the first quarter.

The current system has been straightened out. Five years of “double hundred” is in sight. Performance is expected to enter the high-北京夜网speed growth channel. Investment points: Investment advice: Maintain 2019 EPS forecast of 0.

93, 1.

11 yuan, plus 1 EPS forecast for 2021.

33 yuan, because the company ‘s actual controller is changed after the completion of the mixed change to boost market sentiment, referring to comparable companies to give the main business 38 times 2019PE (equivalent to 28 billion US dollars increase), real estate 3.5 billion US dollars budget, raise the target price to 40 yuan(Previous forecast was 31 yuan), increasing holdings.

  The performance slightly exceeded market expectations.
The company released the first quarter report for 2019, realizing revenue and returning to its mother’s net profit12.

3 billion, 1.

8.9 billion, an increase of 6 in ten years.

7%, 11.

5%, of which the delicious fresh subsidiary operating income, attributed to the mother’s net profit11.

700 million, 1.

86 ‰, with an annual added value of 15.

3%, 33.


  The diversification of categories expanded. The condiment business grew steadily in the first quarter.

Revenue of the company’s soy sauce category in Q1 20197.

500 million, an increase of 10 in ten years.

0%, maintaining steady growth, the beneficiary company accelerated the promotion of product diversification, and small-scale condiments continued to grow at a high speed. Among them, oyster sauce, cooking wine, and edible oil revenue were 5 respectively.

3 billion, 2.

5 billion, 11.

500 million, the growth rate reached 66.

5%, 90.

2%, 16.

1%, the growth rate is higher than the average level, becoming an important driving force for the company’s revenue growth.

In addition, the company continued to develop the market. The number of Q1 company dealers reached 907, which increased by 44 every time. Among them, the relatively weak Midwest and northern regions increased the number of dealers by 22 and 17. The growth rate was significantly higher than otherThe region, benefiting from this 2019Q1 Midwest, the northern market realized revenue of 21.

3 billion, 18.

3 billion, the previous growth rate reached 25.

6%, 19.

5%, faster than the overall level.

  The system has been rationalized, and the “double hundred” is in sight for five years.

The general election of the company’s board of directors is over, and the change of the actual controller is completed.

The new board of directors set a five-year “double-hundred” goal, and plans to sell more than one million tons by 2023, with revenue of more than ten billion yuan.

After the system reform is completed, the company is expected to launch equity incentive plans and other plans, and improve the incentive mechanism.

Although the company is currently the second largest in the industry, its revenue is collected on the southeast coast, and the production capacity of small-scale condiments is still in the process. There are many new development points such as blank markets and category extensions. Revenue has accelerated and the net interest rate has narrowed the gap.There is obvious room for improvement. The next five years are expected to enter the fast lane and performance is expected to accelerate growth.

  Risk reminder: the risk of food safety, the risk of increased competition in the industry