Beidahuang (600598)： In line with the trend of planting scale, resources endow high-quality plastic faucets
Beidahuang (600598): In line with the trend of planting scale, resources endow high-quality plastic faucets
This report reads: The company has more than 10 million acres of high-quality arable land. In the future, how to transform the company to rationalize the management mechanism, improve the overall operating efficiency, the income contribution per acre is expected to significantly increase, and the performance is continuously improved.
Investment points: Investment suggestions: In the future, the domestic land circulation will be further accelerated, and the depth of farmland reform will increase the company’s profit per mu.
We predict that the company EPS for 2019-2021 will be 0.
61 yuan, giving 21 times PE in 2019, corresponding to a target price of 12 yuan, covering for the first time, giving an overweight rating.
In the future, the profitability of a single acre is expected to improve significantly.
The company is located in the Sanjiang Plain and has more than 10 million acres of high-quality cultivated land. Its business is mainly based on land contracting and rent collection. In 2018, the company’s average rent was only 256.
82 yuan / mu.
Considering the deepening of the reform and the price difference between the company’s rent and the average market price (average rent of 400 yuan / mu), the company will streamline 重庆耍耍网 its management mechanism in the future, improve the overall operating efficiency, and contribute to a significant increase in revenue per mu.
The market value of a single acre is less than 2,000 yuan, which is underestimated.
The company has 16 branches and owns well-known agricultural product brands of the Peking University.
Considering that the company is the largest alternative integrated food production enterprise in China, in the future, the product is expected to further extend to the downstream consumer grain and increase the profitability per acre.
Based on the company’s latest value, the corresponding market value of a single acre is less than 2,000 yuan. Taking into account the future improvement of single acre profit, future performance growth is promising.
National conditions catalyzed the scale of land, and the company took the lead as a leader 深圳桑拿网 to benefit.
According to the land area of the family-contracted contracted responsibility land for which the land is confirmed in 2017 is 1.5 billion mu, we assume that the future turnover ratio will reach 80% and the net profit will be 200 yuan per mu after the transfer. The market profit space for land transfer is about 135 billionYuan, the market space is large enough, it is expected to produce large market value enterprises in the future.
Risk reminders: the risk of asset impairment; the price of bulk agricultural products is less than expected; the risk of uncertainty in natural disasters.