Zhengbang Technology (002157) Commentary on Major Issues: Equity Incentive Pigs Go High

Zhengbang Technology (002157) Commentary on Major Issues: Equity Incentive Pigs Go High

Matters: The company released the 2019 Stock Expansion Plan (draft).

Comment: The growth target of equity-inspired pigs is high, and the annual growth rate in 2020 and 2021 will be no less than 60% and 120%, respectively.

The incentive plan intends to award 58 million shares of shares, accounting for 2 of the company’s total share capital.

36%, of which, for the first time, 52.63 million shares were awarded, each for 537 shares; incentives include directors, executives, middle management and core technology, business personnel, and the price was granted for the first time.

56 yuan.

The performance evaluation target of the awarded stocks: Based on the hog sales volume in 2019, the hog sales growth in 2020 and 2021 will not be less than 60% and 120%, respectively.

According to the company’s announcement, the number of pigs to be slaughtered in 2019 is 5.5-6 million heads, that is, the growth rate of no less than 60% in 2020 should be 8.8-9.6 million heads of slaughter pigs, and the growth rate of no less than 120% in 2021 will be a feasible year.The pigs were sold at 1210-13.2 million heads.

Against the backdrop of repeated epidemics, the company’s equity incentives set high hog listing targets, and its confidence in growing and strengthening its hog breeding business has been highlighted.

The company received a large amount of credit from the controlling shareholder, and the determination to strengthen and expand the pig breeding business was highlighted.深圳桑拿网

The board of directors approved the reform today, and the company can make temporary expenditures of no more than 5 billion U.S. dollars to the shareholder’s controlling shareholder, Zhengbang Group, with a term of one year, gradually borrowing control according to the actual operating conditions of the company, and increasing the interest rate as the benchmark interest rate for bank loans.

The non-plague situation that broke out in August 2018 slowed down the company’s expansion. Since 2019, the company has set an increase of nearly $ 1 billion to major shareholders, intends to issue no more than 1.6 billion convertible bonds, and transfer non-core assets to major shareholders. Zhengbang GroupThis large-scale credit grant once again demonstrates the determination of the major shareholders to strengthen and expand the pig 北京夜网 breeding business.

Breeder assets have exploded, and biosafety prevention and control has been upgraded.

① Sufficient breeding pig resources.

The company owns GGP. The total number of GP breeding pigs is about 150,000. At the end of September this year, the company had 65 sows.

30,000, of which 35 can breed sows.

20,000 heads, 30 reserve sows.

10,000 heads, sow inventory at the end of 2019 will reach 1.2 million heads, and by 2020, pigs will be expected to reach 11-13 million heads.

② Comprehensive improvement of biosafety prevention and control.

Biosecurity prevention and control of pig farms is a key factor affecting the survival of pig farms. The company comprehensively reviews the self-built feed mills, self-built pig farms, and cooperative farmer pig farms in terms of software and hardware investment in biosafety control.Improve pig farm biosecurity prevention and control.

Since October, the company has fully combed and adjusted the SOP, and the results have been immediate. In the grassroots process, we learned that the company’s live pig listing rate has reached 90%, and its biosafety prevention and control capabilities have reached a new level.

Earnings forecasts, estimates and investment ratings.

This round of non-plague situation causes severe damage to the ancestors and binary breeders every year. It takes 28 months to grow from the great ancestral breeder to the binary breeder. The recovery of production capacity will be a long process.

At present, the efficiency of ternary seed retention in the market has decreased by more than 60%, the parity is only 1-2, and the non-plague epidemic has been repeated, and the prosperity of the pig breeding industry has continued.

In November of this year, the weight of the fattening pigs of the company’s fattening pigs rose sharply to 115.

28 kg, the non-blast prevention and control from the side reflection has achieved good results, the company’s operating turning point has now been reached.

The company’s equity incentive plan (budget) set a higher growth target for pigs on the market, and obtained a large amount of credit from shareholders. The major shareholders’ confidence and determination to strengthen and expand the company’s pig breeding business are highlighted.

We maintain an estimated 5.7 million pigs, 12 million pigs, and 15 million pigs in the company’s slaughtering population in 2019-2021, corresponding to a revenue of 224.

600 million, 497.

200 million, 568.

90,000 yuan, net profit attributable to mother 24.

100 million, 184.

600 million, 194.

900 million, an increase of 1145 each year.

2%, 666.

3%, 5.

6%, corresponding to EPS0.

99 yuan, 7.

55 yuan, 7.97 yuan.

The hog sector is more than 10 times PE at a profit high. We give the company 5 times PE in 2020 and maintain a target price of 37.

75 yuan, to maintain the “strong push” level.

Risk warning: pig price rises less than expected; blight.