Zhongshun Jierou (002511) Incident Review: Extending Upstream to Realize Integration of the Industrial Chain and Promote Equity Incentives to Help the Company’s Growth

I. Overview 西安耍耍网 of the event On July 9, the company released the second phase of the employee stock ownership plan, and at the same time issued an announcement on the construction of a 30-bamboo pulp-paper integration project.

Second, analyze and judge the proposed 30-insert bamboo pulp and paper integration project, which extends upstream to realize the industrial chain integration. The company intends to construct the 30-insert bamboo pulp and paper integration project, including bamboo pulp 31.

8 seconds / year (air-dried pulp meter), tissue paper 30 seconds / year.

Among them, the pulp production line was put in one time and completed within three years; the paper production line was constructed in three phases with 10 batches of output per phase.

At present, the company has no pulp capacity, and wood pulp used in production 成都桑拿网 replaces imported wood pulp, which is affected by external factors such as the international supply and demand pattern and exchange rate.

After the investment and construction slurry is extended upstream, the profit fluctuation caused by the price fluctuation of raw materials will be improved, and the integration of the industrial chain will also enhance the company’s overall competitiveness.

The implementation of the second phase of equity incentives helped the company’s development company to launch the second phase of equity incentive plans, covering no more than 9 directors and executives, and no more than 71 core employees.

In the new round of equity incentive plan, shares will be repurchased for 18 years, and the price of part of the shares repurchased by the transferee to buy back the special account will be 8.

08 yuan / share.

Following the employee shareholding plan covering 4,618 people in December of 2018, the incentive plan was introduced to gradually increase the company’s development.

Channel dividends and management bonuses continue to be released. The company is continuously and rapidly growing channels. The company continues to promote channel sinking. It currently has more than 2,000 dealers, covering more than 1,100 districts and cities across the country.

However, there are still remaining blank areas to be entered, and the company can still enjoy the growth bonus brought by channel expansion in the future.

In terms of management, the company promoted the professional manager management model from the Golden Hongye Dating Qingfeng management team in 14 years, while adjusting the organizational structure, and refined from the original five major regions to the “8 + 2” regional model.

The company’s management reform is gradually ushering in the harvest period, and the management dividend is expected to continue to be released.

Third, investment proposals are expected to achieve basic earnings in 2018, 2019 and 2020.

42, 0.

52, 0.

62 yuan, corresponding PE is 28X, 23X, 19X, 19 years PEG is less than 1.

Product structure optimization and capacity release will effectively drive the company’s growth and maintain the “recommended” level.

4. Risks indicate that raw material prices are rising, capacity expansion is less than expected, and market expansion is less than expected