100 Billion Grain And Oil Giant "Golden Dragon Fish" Listed On GEM To Meet The Largest IPO In History

On September 16, China Securities Regulatory Commission (CSRC) approved YIHAI KERRY's application for IPO registration, and the gem will usher in the largest IPO in history.

Speaking of her name, she may not be well known to the outside world. But when it comes to another name, the golden dragon fish, it is almost a household name.

Yihai Jiali is one of the largest agricultural products and food processing enterprises in China. Its main business is the research and development, production and sales of kitchen food, feed raw materials and oil technology products. According to the data, YIHAI KERRY has nearly 40% market share of edible oil in China by virtue of "golden dragon fish".

Since this year, the amount of fund-raising of Jiali board is expected to be the largest in the list of capital raising enterprises.

According to the arrangement, on September 22, YIHAI KERRY will make a preliminary inquiry, determine the issue price on the 23rd, conduct an online roadshow on the 24th, and start the subscription on the 25th. It is only one step away from landing on the capital market.

Concerned by the outside world, YIHAI KERRY's market value is expected to exceed 200 billion yuan after landing on A-share market, jumping into the top five of GEM market value, and will also surpass Wenshi shares, the agricultural leader of gem.

"Fish leaping over the dragon's gate"

YIHAI KERRY plans to issue 542 million shares, accounting for 10% of the total share capital after the issuance. It plans to raise funds of 13.87 billion yuan and invest in 19 projects including grain and oil processing, rice and flour oil processing and corn processing.

Although relying on the golden dragon fish edible oil, YIHAI KERRY's business scope is far more than edible oil, including rice, flour, dried noodles, etc. Secondly, relying on the food processing industry chain, the company is involved in feed raw materials and oil technology industry, including raw materials such as soybean meal, peanut meal, bran, oil based chemicals and their derivatives, daily chemical products, etc.

From the perspective of main business structure, in 2019, the company's kitchen food revenue accounted for 63.9%, feed raw materials and oil technology accounted for 35.8%, and others accounted for 0.3%.

It's a huge fund-raising company. In 2017, 2018 and 2019, the company's operating revenue was 150.766 billion yuan, 167.074 billion yuan and 170.743 billion yuan respectively, and the net profits were 5.284 billion yuan, 5.517 billion yuan and 5.564 billion yuan respectively.

In the first half of this year, due to the fact that the kitchen food sold by the company as necessities for people's livelihood was not significantly affected during the epidemic period, the company realized an operating income of 86.973 billion yuan, an increase of 10.53% over the same period of the previous year, and the net profit attributable to the mother was 3.008 billion yuan, an increase of 88.35% over the same period of last year.

Take last year's revenue of 170 billion yuan as an example. What is this concept?

In 2019, the top three gem revenue are Shanghai Steel Union (122.572 billion yuan), Wenshi shares (73.145 billion yuan) and Ningde times (45.788 billion yuan). This means that the annual revenue of YIHAI KERRY ranks first on the gem. The ant group, which will also land in a shares this year, had a revenue of 120 billion yuan last year, and YIHAI KERRY's revenue scale was 50 billion yuan more than that.

From the perspective of net profit, the top three GEM companies in 2019 are Wen's shares (13.967 billion yuan), Mindray medical (4.681 billion yuan) and Ningde times (4.560 billion yuan). This means that the annual net profit of YIHAI KERRY can be ranked second on the gem.

From the perspective of operating cash flow, YIHAI KERRY also performed well, with a net inflow of 13.53 billion yuan in 2019; by the end of last year, the company's monetary capital reached 64.6 billion yuan.

No matter from which indicator, YIHAI KERRY is not poor money. What is the main purpose of listing?

Mu Yankui, President of YIHAI KERRY, once told the media that financing is not the main purpose of YIHAI KERRY's listing in China, but that after listing, YIHAI KERRY can naturally transform itself into a genuine domestic enterprise and get rid of the title and restriction of "foreign capital", which is also the basis for further expansion of YIHAI KERRY's business in China.

This leads to the story behind YIHAI KERRY.

Although "golden dragon fish" sounds like a native company, it is a foreign-funded enterprise. Bathos, the controlling shareholder of YIHAI KERRY, holds 99.99% of its shares. Wiley international holds 100% of bathos indirectly through WCL holding, Wiley China and Frey China (Bermuda). Wiley international is a listed company in Singapore.

The prospectus shows that the company has no actual controller, but the Guo family behind it has to be mentioned.

According to the official website of YIHAI KERRY, the company is jointly invested by Guo Henian, a famous overseas Chinese, and Guo Kongfeng, his nephew. After the IPO of YIHAI KERRY, Fengyi international is expected to hold no less than 80% of the shares.

The "helmsman" of Fengyi international is Guo Henian. He is an overseas Chinese from Malaysia and has the title of "Asian sugar king". Besides the golden dragon fish, the famous Shangri La Hotel and Beijing international trade building are also its assets.

The main shareholders behind the company are ADM, Guo Kongfeng, Guo Henian, Kerry Group Limited and Kuok brothers SDN Berhad of the Guo family. When the golden dragon fish successfully "leaps" to the market, it is bound to bring further growth to the Guo family's wealth.

The market value is expected to exceed 200 billion

Another market focus that the Guo family's wealth story raises is the valuation of the giant.

YIHAI KERRY will also go through the inquiry process through the gem registration system. Recently, the case of IPO issuing at low price has caused hot discussion in the market. But from the reporter's understanding, for the YIHAI KERRY listing, market people are generally optimistic.

In the first half of the year, Jiali's market share of edible rice and oil was very strong, which led to a strong market share. Such a huge volume and industry status, coupled with brand premium, I believe the valuation will not be low. " September 21, a private placement personage in Shanghai told reporters.

According to CITIC Securities Research Report, EPS of the company is expected to be 1.31/1.50/1.67 yuan in 2020, 2021 and 2022. The reasonable PE valuation range of the company's consumer goods attribute business (kitchen food retail & Catering channel) is more than 25 times, and the reasonable valuation range of bulk attribute business (Industrial channel of kitchen food & others) is 10-15 times. According to comprehensive judgment, the reasonable PE valuation range of 2021 of the company is 20-24 times, and the corresponding reasonable stock price range is 30-36 yuan.

The basis given is that the company is the leader of China's grain and oil industry, the brand value of "golden dragon fish" is prominent, and the channel, procurement scale and production capacity layout are in the lead. We are optimistic that the company will continue to maintain revenue growth under the absolutely leading scale, and add extremely strong product & raw material operation ability. Under the dynamic balance, the company's future profit is expected to achieve stable and rapid growth.

According to the highest price of 36 yuan / share and the total share capital of 5421591536 shares after the issuance, the market value of YIHAI KERRY can reach 195.2 billion yuan, close to 200 billion yuan.

According to the prospectus, Yihai Jiali listed COFCO group, Jiusan group, Shandong Luhua, daodaoquan, wudeli, Keming noodle and Jinjian rice as its main competitors. Among them, COFCO group's COFCO technology's latest dynamic P / E ratio is about 23 times. With this benchmark, the issuance market value of YIHAI KERRY is about 127.9 billion yuan. According to this calculation, once the first day's increase exceeds 57%, its market value will break through 200 billion yuan and enter the top five of GEM market value.

Some market participants have benchmarked it with the soy sauce leader Haitian flavor industry. The latter's market share is about 30%. In 2019, the net profit is 5.35 billion yuan, the market value has exceeded 500 billion yuan, and the P / E ratio is about 80 times.

"At present, the company has formed a comprehensive brand matrix covering high-end (golden dragon fish, olive orchid, hujihua), middle end (xiangmanyuan), and Volkswagen (Yuanbao brand and Koufu), and has built multiple core comprehensive brands through brand sharing. The company's landing a shares is expected to further consolidate the leading position of grain and oil with the help of financing advantages. " Ping An Securities Jiang Yinqiu pointed out. It believes that as a platform type leader, YIHAI KERRY is expected to be "the strong will always be strong".