I Miss You (002582): I plan to sell 100% stake in Baicao to PepsiCo, focusing on the main business of jujube

I Miss You (002582): I plan to sell 100% stake in Baicao to PepsiCo, focusing on the main business of jujube

Company status The company announced that it intends to sell 100% of Holmes / Pakcho Flavor to Pepsi Beverage through a cash sale, for a price of 7.

USD 5.0 billion (nearly RMB 5 billion), corresponding to approximately 30 times P / E in 2019 and approximately 18 times EV / EBITDA in 2019.

We believe that the transaction price is reasonable, and the listed company can use the cash considerations to support the development of the main business, which is conducive to improving the continuous operation capacity of the main business and improving the financial position.

The company also announced a three-year shareholder return plan for 2020-2022 to strengthen shareholder returns.

  Comments The transaction price is reasonable and will bring the company consolidated 无锡桑拿网 financial returns.

Holmes / Baicaowei was acquired by a listed company in 2016 in the form of equity + cash, with a total consideration of 9.

US $ 600 million (corresponding to nearly 20 times P / E according to 2016 performance). It is currently sold to Pepsi Beverage for approximately US $ 5 billion, with a value-added rate of approximately 4 times.

The transaction price corresponds to approximately 18 times EV / EBITDA in 2019, and approximately 30/25 times P / E in 2019/2020. We judge that it is reasonable and reasonable. The company stated that replacing 100% of Baicao flavor will result in a 82% decrease in company revenueHowever, the net profit attributable to mothers will benefit from the investment income generated by this transaction with an increase in offset, which will increase by 1,355 before the earlier transaction.


  After the transaction, the company 四川耍耍网 will focus on the main business of red dates and vigorously lay out the health food industry.

We believe that after the transaction, the company will focus more on the jujube and core health food industry. The company stated that it will upgrade the existing business model through the “Spark Program” and rely on the advantages of your brand, products, channels, technology, resources, etc.We will unite leading high-quality specialty agricultural products companies and local governments to extend the industrial chain and enhance the value chain.

We expect that the business trend of your headquarters will develop well, and it is expected to achieve non-profit growth in 2020.

  The company’s abundant cash will be used to repay debts, extended growth provisions and shareholder returns.

  The company stated that except for the abundant cash approved by the exchange, it can be used to support the development of the main business, or used to repay debts and investments. We believe that it will also provide the possibility for subsequent potential outbound growth.

In addition, the company announced a three-year shareholder return plan for 2020-2022. Under normal circumstances, the profit distributed in cash each year is not less than 10% of the distributable profit realized by the parent company in that year. The board of directors can gradually cash dividends based on the company’s profitability status.It is expected to differentiate the cash dividend policy to strengthen shareholder returns.

  Estimates and recommendations Due to the uncertainty of the sales expectations, we will not put the sale into the profit forecast assumptions for the time being, and maintain the EPS forecast for 2020/2021 to 0.


49 yuan, maintaining a target price of 12.

35 yuan and outperform the industry rating, currently there is 10% sustainable growth potential.

  Risks Raw materials fluctuate, industry demand changes, industry competition intensifies, and food safety risks.