Sanquan Food (002216): Profit release exceeds expectations and reforms accelerate

Sanquan Food (002216): Profit release exceeds expectations and reforms accelerate

The company released a performance forecast, and it is expected that the company will realize net profit attributable to mothers in 20191.


100 million, an increase of 80% -110% in ten years.

  The main business reform of the business analysis exceeded expectations, and the two channels grew together: the company’s long-term return to net profit increased beyond expectations, of which Q4 achieved zero profit in a single quarter.


9.7 billion, the main business is expected to exceed expectations, both the traditional retail and catering businesses are working hard; meanwhile, the reduction in asset impairment losses and the increase in government subsidies also help.

The scale of traditional retail channels, the company through the 武汉夜网论坛 optimization of product structure, actively expand sales channels and improve the efficiency of internal organization, to achieve significant improvements in operating efficiency; the scale of catering business, the company further taps the potential, by continuing to expand product research and development, expand production scale, deepen the channel to obtainPerformance has maintained steady growth.

Both internal and external improvement of the company accelerated the release of profits, and the net profit margin increased to more than 3%.

Cooperate with 7-Eleven to tap the potential of the fresh food supply chain and convenience store business: The company broke through a 7-Eleven cooperation agreement with a well-known chain convenience store brand, and the company will obtain its exclusive operating right in Henan Province, which can be developed in Henan ProvinceAnd operating 7-11 convenience stores, 7-11 will also continue to provide business support.

Henan is a province with a large population. The provincial capital, Zhengzhou, is the core engine of the Central Plains urban agglomeration, and is an effective regional grabber for the convenience store model. 7-11’s rich and mature management and operation experience is also a strong guarantee for long-term sustainable development in the future.

Working together, the two parties can leverage Sanquan’s strengths in the fresh food supply chain to achieve business synergy, and also help Sanquan gain insight into consumer trends and more accurately grasp future product development and industry development trends.

The profit improvement trend continues and the operation is fully optimized: The company’s current round of reforms has achieved initial results. It is expected that it will also effectively improve internal morale and help the reform to advance more effectively.

In the long run, we are still optimistic about the company’s improvement from multiple dimensions such as internal assessment, product structure, and channel expansion. In particular, we continue to accelerate the market layout in the catering channel, improve the company’s profitability, and enter a new cycle of profit release.

  Earnings forecast As the company’s main business accelerates the release of profits, we have raised the company’s earnings forecast; the company is expected to achieve operating income of 57-20 in 2019-2021.



200 million, +4 a year.

2% / 7.

9% / 9.

5%; net profit attributable to mother 2.



5 ‰, +93 a year.

5% 35.

0% / 31.

3%, respectively, which is 40% higher than the net profit attributable to the mother.

0% / 33.

7% / 31.

6%; realized expected return of 0.



44 yuan, the current expected corresponding PE is 57/42/32 times, respectively, maintain “Buy” rating.

  Risks prompt increased competition in the industry, rising raw material costs, less-than-expected catering channel expansion, and food safety