Huang Shanghuang (002695): Incentive mechanism greatly improves fast exhibitions and promotes high growth

Huang Shanghuang (002695): Incentive mechanism greatly improves fast exhibitions 都市夜网 and promotes high growth

Core viewpoints The new leader is determined to forge ahead, and the incentive mechanism has been greatly improved. After 16 years of the implementation of the transformation, the focus of the main business has been restored. In 17 years, the company successfully realized the transfer of the old and the new. The new owners Chu Jun, Chu JianFor reforms, 70% of the bonus pool is used to motivate the sales team, and initialize the salary structure of “annual salary + commission + bonus + equity incentive” for key marketers.

The company’s revenue during the period from 12 of 16 years.

18 million quickly increased to 18 in 18 years.

98 million, compound growth rate of up to 24.

83%.

The leisure halogen products industry continues to grow rapidly, and the franchise model stands out. 1) From 夜来香体验网 an industry perspective, the leisure halogen products 10-year CAGR is 18.

65%, the current market size is as high as 911 ppm, but the industry CR3 is only 14%, of which the delicious food, Zhou Heiya, and Huang Shanghuang accounted for 7 respectively.

7%, 3.

5%, 2.

7%, considering that the growth rate of brand halogen products is much higher than that of non-brand halogen products.Driven by the rapid increase in the number of merged stores represented by Shanghuang, the rapid increase in performance was achieved by the rapid increase in the number of stores, while the growth in the direct mode represented by Zhou Heiya was offset by each other; 3) From the perspective of the future development of the industry, the scale of upstream raw material procurementEffect, the layout of the midstream production side close to the market, and the strong supply chain advantages formed by the strong coverage of the downstream store side are the core competitiveness of the leisure halogen product industry.

The fast exhibition shop helped to turn around quickly, and Huang Shanghuang’s ROE level increased. After 20 years of precipitation, Huang Shanghuang’s old-fashioned sauce sauce brand has been nationalized, and its internal development and superimposed extension acquisition have helped diversify product categories.

The upstream raw material procurement of the company relies on the dual procurement model, and the scale effect is realized ahead of time; the production layout of the “four major bases + several small bases” is planned in the midstream, and the transportation and management efficiency is gradually improved; the downstream store opening strategy is continuously optimized, and the new market is led by old franchiseesThrough the cut-in energy stores, it is estimated that the number of terminal stores in 19 years will be 3800, 4800 and 5800 respectively.

We believe that the company’s rapid exhibition is expected to achieve rapid turnover, drive ROE to achieve synchronous improvement, and gradually increase profitability.

Covered for the first time, giving the company an “overweight” rating. We expect the company’s operating income for 2019-2021 to be 23 respectively.

23, 28.

94, 34.

8.3 billion; net profit attributable to mothers is 2.

40, 3.

23, 4.

31 ppm; EPS is 0.

47, 0.

63, 0.

84 yuan / share, corresponding to the current PE is 33.

44, 24.

83, 18.

64 times.

Considering that the company’s new senior executives are forging ahead, the rapid expansion of stores in the future is expected to achieve rapid turnover, and the first coverage is given an “overweight” rating.

Risk reminders: food safety risks; management risks of directly-operated stores and franchise stores; risks of cross-regional operations; risks of raw material price fluctuations.