Tianye Innovation Co., Ltd. (hereinafter referred to as Tianye Co., Ltd.) is mainly engaged in the research and development, production and sales of tropical fruits and vegetables raw materials, including raw fruit juice, quick-frozen fruits and vegetables, fresh fruits, etc. The company's raw juice products include concentrated fruit juice, NFC, blended fruit juice and other forms and specifications, master more than 40 kinds of fruit and vegetable processing technologies such as mango, passionflower, lychee, etc., have a provincial enterprise technology center, participate in the formulation of the national agricultural industry standard "Non-concentrated Reduced Fruit and Vegetable Juice Raw Materials" (NY/T3907-2021), and have a high market share and popularity in the tropical raw juice sub-industry. The company is about to land on the Beijing Stock Exchange.
Source: Photogram
It has established a reputation and benchmark position in the industry
Focusing on the key technologies of agricultural product processing, Tianye has mastered more than 40 kinds of fruit and vegetable processing technologies through research and development and independent innovation, and developed flexible processing technology and equipment solutions for the output and structural characteristics of tropical fruit and vegetable raw materials, and the number of processed varieties and production efficiency are industry-leading. The company has obtained 6 invention patents and 47 utility models, and Tianye Co., Ltd. has won the "2022 Guangxi Most Potential Private Enterprise", Hainan Dachuan has won the "Hainan Major Tropical Juice (Pulp) Processing Technology and Equipment Integration Innovation and Invention Second Prize", "Hainan Province Specialized and Special New Small and Medium-sized Enterprises" and other honors and awards.
The company has established a strict production management process and quality management system, and the main factories have passed the quality management system, food safety management system, HACCP system and BRCGS certification and other certifications.
In the whole agricultural industry chain of "from the field to the tip of the tongue", the company accurately converts non-standard agricultural products into standardized raw material products, focusing on the processing of tropical fruits and vegetables. The company's main product raw material fruit juice can not only be directly sold to customers in the downstream pre-packaged beverage and new tea beverage industry, but also can be widely used in food and beverage, catering, baking, dairy products and other industries through blending and compounding production of blended fruit juice, flavored syrup and other products. The company's industrial chain card position enables the company to not only meet the needs of customized raw material juice of customers with scale advantages in the downstream, but also extend the development of new products and formulas such as blended juice and fruity syrup to meet the needs of customers at more levels and industries, and also has the potential to integrate into the customer's supply chain to provide more products and services.
The company has four modern factories in Beihai, Hainan, Ding'an, Sichuan, Panzhihua and Jingmen, Hubei, and its production capacity layout occupies the "timing" and "geographical advantage" of China's main tropical fruit and vegetable producing areas, and ranks among the best in the processing varieties and production capacity scale of China's tropical raw material juice sub-industry. The company is located in Beihai, Guangxi, which is the only coastal area in the western development area of the mainland and the only outlet to the sea in the southwest of the "Belt and Road" strategy. Hainan Dachuan is the largest tropical raw material juice processing enterprise in Hainan, and exclusively undertakes the "deep processing center" in the overall spatial layout of "one belt, four districts and multi-center linkage" in the "Hainan Mango Advantageous Characteristic Industrial Cluster Construction Plan". The company not only enjoys the dividends of the national industrial policy and tax policy for the large-scale development of the western region, but also benefits from the in-depth implementation of the national strategies of "rural revitalization" and "One Belt and One Road", and is also expected to seize the policy opportunities of Hainan Free Trade Port to achieve leapfrog development.
The company has been deeply engaged in the pre-packaged beverage industry customers for many years, serving high-quality customers such as Nongfu Spring, Coca-Cola and Wahaha all year round, and has established a reputation and benchmark position in the industry. The company seizes the market opportunity of the rapid development of new tea drinks, develops new products and new formulas for customer needs, increases investment in upgrading equipment, provides customized processing services for raw juice origin for new tea customers, and is the main supplier of tropical raw material juice of well-known brands such as Naixue Tea, Chabai Dao, Dian Dian and Hushang Auntie.
The price-to-earnings ratio of the issue is 19.43 times, which is lower than the industry average
With the above advantages, the company's performance is eye-catching. The company's operating income in 2020 and 2021 was 266.2139 million yuan and 459.3962 million yuan respectively, the growth rate of operating income in 2021 was 72.57%, and the net cash flow generated by operating activities in 2021 was 96.8889 million yuan.
Combined with the company's profitability and market valuation level, and reasonable estimation of the stock trading price, it is expected that the market value of the issuer after listing will not be less than RMB 400 million.
Compared with comparable companies in the industry, many of the data of Tianye shares far exceed those of peers.
In terms of accounts receivable turnover, the company's 2019 to the first half of 2022 was 5.34, 4.44, 8.84 and 3.52. The comparable company averages were 4.57, 4.26, 4.10, 2.11. The company's accounts receivable turnover rate was close to that of comparable companies in 2019 and 2020, and significantly higher than that of comparable companies in 2021, mainly due to the company's optimization of customer structure, the sales revenue and proportion of new tea customers in 2021 increased significantly, and the frequency of pick-up of new tea industry customers was significantly higher than that of customers in the food and beverage industry.
From 2019 to the first half of 2022, the company's gross profit margin was 27.04%, 26.48%, 29.16% and 28.81%. The average values of comparable companies were 19.19%, 15.03%, 18.22%, and 21.63%. The gross profit margin of the company is higher than that of listed companies in the same industry, the main reason is that the main product of listed companies in the same industry is concentrated apple juice, the industry has entered a mature period, consumption habits and product demand tend to be stable, product differentiation is small, and product characteristics are closer to bulk commodities. The tropical raw juice industry engaged in by the company started late, the industry is still in the development period, and the market demand still has a large room for improvement. Second, the production capacity layout of listed companies in the same industry is mainly concentrated in Shaanxi, Shandong, Henan and other major apple producing areas, and the varieties of fruits and vegetables suitable for processing are limited, and the pressing season is short. The company's production capacity layout covers the main producing areas of tropical fruits and vegetables in China, and the number of processed varieties is more than that of listed companies in the same industry, and the pressing season is longer.
The company's issue price per share on the BSE is 3.60 yuan per share, corresponding to a price-to-earnings ratio of 19.43 times. Among the comparable companies in the same industry, SDIC Zhonglu has a P/E ratio of about 150 times, André is about 11 times, and the average P/E ratio is about 80 times. In contrast, the price-to-earnings ratio of 19.43 times is still low, opening up the imagination of investors.
Seize industry development opportunities
After 40 years of development, China's juice beverage consumption has completed the transformation from "eating enough" to "eating well", and is evolving to "lifestyle upgrading", entering the era of experience economy, and the demand for diversified, personalized and experiential consumption continues to grow. The rapid development of the new tea beverage industry, especially the rapid increase in the consumption of fresh fruit tea and fruit tea, has driven the rapid growth of demand for raw juice industry.
The in-depth implementation of the "rural revitalization" policy not only encourages the scale, standardization and commercialization of upstream agricultural product production bases, but also encourages the primary processing and intensive processing of characteristic agricultural products in the county. The new pattern of "dual circulation" development and the policy of Hainan International Free Trade Port with the expansion of domestic demand as the strategic base point have brought new opportunities for the innovative supply chain and business model of the raw juice industry.
In this context, the listing of Tianye Shares on the Beijing Stock Exchange, fundraising, investment and expansion is expected to better seize the development opportunities of the industry, become bigger and stronger, and return the trust of investors.
The company's listing on the Beijing Stock Exchange this time, fundraising projects include: Hainan Free Trade Port smart factory (phase I) construction project, Hainan Dachuan tropical characteristic industry expansion project.
Among them, the Hainan Free Trade Port Smart Factory (Phase I) construction project plans to build the Hainan Free Trade Port Smart Factory (Phase I) in Qiongzhong County, Hainan Province. After the completion of construction, it will form a manufacturing capacity of 8,000 tons of coconut products and 12,000 tons of flavored syrup per year.
This project conforms to the new pattern of "dual circulation" of expanding domestic demand, takes advantage of the Hainan Free Trade Port policy, gives full play to trade liberalization and facilitation to import coconut, sugar and other raw materials, and enjoys the dividends of the import tariff exemption policy when entering the mainland.
After the completion of this project, the company's coconut product production capacity has been greatly increased, and the development of syrup series products can better meet the "one-stop" procurement needs of customers. The implementation of this project will help the company seize the new opportunities of Hainan Free Trade Port to achieve leapfrog development.
Hainan Dachuan Tropical Characteristic Industry Expansion Project plans to expand the existing plant in Ding'an County, Hainan Province, and is expected to increase the annual production capacity of 23,400 tons of raw fruit and vegetable products after completion. The existing raw juice production capacity of Hainan Dachuan is 20,200 tons/year, and the expanded production capacity accounts for 116.07% of the existing production capacity, which is mainly used to increase the output of mango, guava, lychee, lapis kumoil, lemon, pineapple and other existing processed varieties of the company.
Based on Hainan's tropical fruit resources, this project relies on existing technical capabilities and customer resources, which is conducive to Hainan Dachuan breaking through the bottleneck of production capacity, improving the level of production automation and intelligence, and consolidating the regional leading position. The project will further expand the scale of production to meet the company's business growth needs; Further improve the level of technical equipment, transformation and upgrading of high-quality development; Respond to the needs of Hainan's tropical high-efficiency agricultural development policy and help rural revitalization.
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