Tianwei Food (603317): Actively develop dual products and dual channels to add flavor to life
Report Summary: The company’s compound condiment industry has a broad space and rapid growth, which is the future development direction of condiments.
The market size of Chinese compound condiments increased from RMB 5.57 million in 2013 to RMB 109.1 billion in 2017, with an annual compound production capacity of 15.
However, China still focuses on the consumption of single condiments such as soy sauce and vinegar, and the proportion of compound condiments is still very small, only 26%, which is far lower than the proportion of consumption of more than 59% in other countries, which has broad development space.
From the perspective of demand, the 天津夜网 restaurant chain’s homemade compound seasonings are inefficient and cannot be standardized, and catering companies are purchasing more and more compound seasonings.
As for the family, the demand for younger consumer groups is increasing, and the demand for convenience and speed has become stronger and stronger, and the future growth rate of compound condiments is considerable.
According to Frost & Sullivan’s forecast, from 2015 to 2020, the growth rate of Chinese-style compound seasonings will be increased by 16.
9% compound annual average; followed by hot pot seasoning, compound strength will reach 15%.
These are the two major business segments in which Tianwei Food is involved. They are categories that can achieve a large single product strategy and can generate scale advantages.
Tianwei Food is at the forefront 杭州桑拿网 of the industry, ranking third in the hot pot bottoms industry and No. 1 in Sichuan cuisine seasonings. It already has high-quality product capabilities, C-end channel capabilities, and upstream and downstream management capabilities.
In the end, the company keeps launching new products and launching 1-5 new products every year. Half of the revenue increase comes from new product sales.
But compared to the previous, the company’s brand power still needs to be strengthened.
The company strictly controls the procurement process, strengthens supplier management, and solves the problems of high proportion of raw materials, complex procurement, and food safety management.
At the same time, the company’s marketing channels are becoming more basic, which helps the company understand the market.
In addition, the company will focus on developing B-end meal tuning customers in the future, which will have an impact on the company’s overall gross profit margin, but the maintenance costs will be low in the future.
Use of raised funds: The company publicly issued no more than 41.32 million ordinary shares of RMB. The raised funds were used for the expansion and expansion of the home production base, the expansion and expansion of the Shuangliu production base, the marketing service system and the comprehensive supporting construction of information technology. The main purpose was to expand hot pot.The production capacity of base materials and meals enhances the quality of service and enhances the company’s industry advantage.
Earnings forecast: EPS for 2019-2021 is expected to be 0.
2 yuan, corresponding to PE is 55 times, 46 times, 38 times, the first coverage, given “overweight” rating.
Risk warning: food safety issues; changes in raw material prices