Miao Kelanduo (600882) Quick Review of Important Events: Strengthened by Leading Strategic Investment to Enhance Competitive Advantage

Miao Kelanduo (600882) Quick Review of Important Events: Strengthened by Leading Strategic Investment to Enhance Competitive Advantage

Matters: Inner Mongolia Mengniu Dairy (Group) Co., Ltd. is the strategic shareholder of the company and its wholly-owned subsidiaries.

The opinions are as follows: Guoxin’s point of view: We believe that the strategic cooperation between the company and the leading Mengniu will complement each other’s advantages, strengthen the listed company’s operating and governance capabilities, consolidate the company’s leading position in the cheese business, enhance competitiveness, profitability and brand influence, Optimistic about the company’s first-mover advantage in cheese business and long-term rapid development space, scale expansion, cost-effectiveness ratio and overall profitability continue to move up, maintaining 2019-2021 EPS to 0.

09/0.

37/0.

60 yuan, corresponding to 168/40/25 times PE, one-year target assessment of 16.

7-17.

4 yuan, maintain “Buy” rating.

  Opinion: Strategic cooperation includes two parts: equity transfer and capital increase of subsidiaries: 1.

Equity transfer: Mengniu and the collective asset management center of Dongli Town, Yiyuan County, Wang Yongxiang, Liu Mudong, and Yiyuan Huawang Investment Co., Ltd. signed a share transfer agreement to transfer the non-restricted circulation held by the transferor at the price of 14 yuan per share2046 shares.

80,000 shares, the total price is 2.

8.7 billion, accounting for 5% of the total equity of Mycolando; 2.

Capital increase of subsidiaries: Mengniu intends to use cash4.

5.8 billion yuan to increase capital of Jilin Technology, a subsidiary of the company, to subscribe for additional registered capital of Jilin Technology2.

10,000 yuan, accounting for 42% of the registered capital of Jilin Technology after the capital increase.

88% (the stock company adjusted from 100% to 57.

12%), and Mengniu Niu has the right to issue a notice of equity upturn (non-obligatory) within 24 months after the completion of the registration of the equity change.The right requires the listed company to reset all the shares held by its subsidiaries into listed company shares or other equity instruments by issuing stocks, convertible bonds, etc.

  Complementary advantages of both parties are conducive to strengthening the company’s competitive brand power. According to the agreement, Mengniu and the company will actively carry out the development and promotion of various cheese products, and jointly build sales channels, share marketing resources, and increase production capacity.Business cooperation to achieve complementary advantages and win-win cooperation.

In addition, in terms of corporate governance, Mengniu has the right to appoint a director candidate and recommend a deputy chief financial officer.

The two parties have cooperated in the cheese product foundry business in the past 12 months, involving a transaction amount of 16.16 million yuan.

  We believe that this strategic cooperation agreement will help the company and Mengniu to exert their respective advantages and accelerate the development of the domestic cheese market with great development potential. Based on the rich and advanced development experience of the dairy industry leader Mengniu, it will strengthen the listed company’s capabilities in operation and governance and consolidateThe company’s cheese business has a market-leading position, enhancing competitiveness, profitability and brand influence, in line with the company’s long-term development strategy.

  The cheese business continues to increase rapidly, and the increase in production capacity complements the company’s core cheese business in 2019, which continues to grow at a high rate. The company’s catering channels that rely on its strengths continue to grow rapidly. This year, Burger King, Subway, Naixue, and Starbucks were launched.The company’s star retail product cheese sticks continue to explode, and cheese sticks are expected to sell 4 this year.

500 million, active sales recently, benign inventory levels.

The company’s product advantages are mainly in formula taste and production technology. Competitive products have insufficient product power and weak repurchase power in offline cities.

Expenditure is expected to continue to increase at the expense end, and the cost of advertising and logistics will further reduce the space. In the future, the company will in-depth new product development, channel transformation and transformation, and capacity construction will also provide steady support. Currently, there are 10 production lines for cheese bars.At the end of the first quarter of the year, the production capacity will be 50% more (2 lines are ready to be taken 杭州桑拿网 in, and 3 lines will be added after the Spring Festival).

On the whole, the company adopts the overall strategy of “stabilizing liquid milk and developing cheese” to improve the nationwide layout. While consolidating the leading position of e-commerce channels, the company develops new cheese products in a variety of modern channels to provide consumers with high-quality, differentiated products.Product portfolio.

  Profit forecast level We believe that the strategic cooperation with leading Mengniu will help the two sides complement each other’s advantages, strengthen the listed company’s management and governance capabilities, consolidate the company’s leading position in the cheese business, enhance competitiveness, profitability and brand influence, and are optimistic about the company’s cheeseThe first-mover advantage of the business and the long-term rapid development 深圳桑拿网 space, expansion of scale and promotion, cost-effectiveness ratio and overall profitability continued to move upwards, maintaining 2019-2021 EPS to 0.

09/0.

37/0.

60 yuan, corresponding to 168/40/25 times PE, a reasonable one-year valuation of 16.

7-17.

4 yuan, maintain “Buy” rating.

  Risks suggest that the industry’s business climate is changing; the channel expansion is slow; capacity building is not up to expectations;