Zhongshun Jierou (002511): Bamboo Pulp and Paper Project Launches Extension of Product Line, Employee Shareholding and Core Leadership
Event 1: The company plans to invest in the construction of an integrated bamboo pulp and paper project.
The company intends to invest in the project in Sichuan, of which bamboo pulp production capacity is 31.
8 inches, tissue paper capacity is 30 inches.
The project is expected to have a total construction period of 70 months, of which the pulp production line will be put in one time and construction will be completed within three years (expected 2022); the paper production line will be constructed in three phases with 10 outputs per phase (expected 2022?
2024 10 tons per year)).
The total investment of the project is 40.
8.7 billion (own capital, bank borrowings and legal and effective financing methods), with an estimated annual income of 30 after the project is completed.
30,000 yuan (including tax), profit after tax is 2.
1.7 billion with a payback period of 12.
04 years (including construction period).
The “Sun” brand was launched to sell bamboo pulp tissue paper, and the product line was expanded to expand market share.
The company will use the “Sun” brand to sell bamboo pulp tissue paper, which will further extend the company’s product line.
In the past, the company mainly sold mid-to-high-end tissue paper series and used imported wood pulp as raw materials.
It is expected that the company’s newly launched bamboo pulp tissue paper will mainly target the mass market and the company’s product matrix will be perfect.
The sales price of bamboo pulp tissue paper is expected to increase, but in addition to self-produced bamboo pulp, the gross profit margin of new products is not expected to further reduce the company’s internal mid- to high-end products and the net profit margin of new projects.
2%, close to the company’s current net interest rate of about 8%.
In the 18-year tissue paper industry, CR4 was close to 35%, and most 上海夜网论坛 of the rest of the market was replaced by small and medium capacity.
The company’s bamboo pulp and paper integration project has the advantage of cost. At the same time, relying on the company’s brand influence, it will greatly seize the internal small and medium capacity market, bringing new revenue and profit growth points for the company.
Event 2: The second employee stock ownership plan was launched.
The company launched the second phase of the employee stock ownership plan, with a total number of participants not exceeding 80, of which 9 were directors and supervisors of the company, and the repurchase price was 8.
08 yuan / share, the maximum fund size at the time of establishment is 50 million yuan, the upper limit is 50 million shares.
Among them, there are 9 directors and senior managers, with a total 北京夜网 subscription of 28 million shares, which is expected to account for 56% of the employee’s shareholding plan. Other employees are expected to not exceed 71 people, and total subscription expenses are expected to not exceed 22 million.The proportion of the employee’s total shareholding plan is expected to be 44%, which is tied to core leaders, and the company is united.
Deng’s father and son are expected to subscribe for 27% of the total shares in this employee share plan, and Liu Jinfeng, the deputy general manager, subscribes for 6%. Zhou Qichao, the director, and Dongying, the financial director, subscribe for 6% / 2%, respectively. The three newly appointed deputy general managers, Dai Zhenji/ Yue Yong / Ye Longfang respectively subscribed for 6% / 6% / 3%.
This employee shareholding plan is deeply tied to the company’s core leadership, and the company’s unification will be conducive to the company’s long-term development in the future.
The layout of the channel network has continued to improve, with higher growth attributes.
The company accelerates the layout of its outlets through the four major channels of GT + EC + KA + AFH. The company has achieved rapid growth by relying on dealer expansion 15 years ago, of which the sales channel revenue from commercial sales only accounted for about 5% last year (2.
700 million vs Vinda sales revenue12.
800 million, accounting for 14%), facing the domestic market space of nearly 30 billion, the current concentration is still low, the company can still expand space.
Dealer channels, as of the end of 18 years, has reached 1791 counties and cities (surpassed the target), the number of dealers increased by 256, and the target of 2019 is to add 500 counties and cities.
The company’s e-commerce channel has experienced strong growth, and relying on online channels is expected to accelerate the increase in city share.
In terms of production capacity, Hubei is expected to increase its production capacity by 10 tons in 19 years, Tangshan will increase its production capacity by 5 and its total production capacity will reach 81 tons in the future. It is expected to maintain a sales growth of 18%.
New product categories were expanded and product structure continued to be optimized.
The company’s main business is tissue paper. In 18 years, it launched a new personal care cotton wipes. In June, the sanitary napkin products were launched online.
The size of the sanitary napkin market has reached 40 billion. The company has channel and brand advantages, and the new business is expected to bring new growth points.
Face + Lotion + Natural Wood are the three high-margin products promoted by the company. In 19Q1, the revenue share increased to more than 65% (vs. 18 years’ share 63).
4%), in which the growth rate of emulsion revenue has reached over 100%, which has been the focus of the company’s development in 19 years, and the company is still developing other high-margin products. In the future, through adjustment of the product structure, the single-ton reduction will still improve.
The cost-side pressure continued to ease, the product structure was high-end, the omni-channel layout was further improved, the endogenous growth momentum was maintained, and the “Buy” rating was maintained.
It is estimated that the net profit in 19-21 will be 5 respectively.
800 million, 35 per year.
0% / 20.
2% / 17.
5%, corresponding to PE 26.
2X / 21.
8X / 18.
Risk reminder: Uncertainty of the government approval of the bamboo pulp and paper project, uncertainty of fund raising, uncertainty of the implementation of the shareholding plan, risk of fluctuations in raw material prices, new product sales being less than expected risks, and channel expansion less than expected risks