Jinjia (002191): In-depth cooperation with Wuliangye wine bag business

Jinjia (002191): In-depth cooperation with Wuliangye wine bag business

Event: The company issued an announcement and signed a cooperation agreement with Wuliangye Packaging Company On April 10, 2019, the company signed a strategic cooperation agreement with Sichuan Yibin Licai Group; Jinjia Intelligent Packaging, a wholly-owned subsidiary of the company, signed a fine printing with Yibin WuliangyeThe joint venture agreement, the two parties jointly invested 20 million to establish Yibin Jiamei Intelligent Packaging Co., Ltd. (tentative name).

This cooperation marks the company’s successful entry into Wuliangye’s packaging supply system.

The left hand Moutai, the right hand Wuliangye, the wine bag business layout two major liquor spirits. According to the Wuliangye 2018 annual report, the annual output of Wuliangye liquor reached 19.

20 inches, 2,000 bottles per ton, about 3.

8.4 billion bottles.

At present, Wuliangye’s packaging is mainly made of acrylic materials. In the future packaging upgrade process, carton packaging is gradually being further used, and there is room for growing orders for Wuliangye’s paper packaging.

After the signing of this cooperation, the company has successfully entered the Bureau of Moutai (see the “Announcement on the Diversified Equity Acquisition Agreement” on December 25, 2017). Wuliangye, the two leading wine companies, is expected to have a prominent brand effect in the wine packaging 上海夜网论坛 industry.

This cooperation not only brings opportunities for the company’s development of customers in the southwestern region. After the establishment of the joint venture, the two parties will focus on technological innovation, product transformation design, and make every effort to create southwestern intelligent tobacco, wine, and food packaging.

Relying on the benchmarking effect of Wuliangye Group and the fine printing of local customer resources, the company’s business in the Sichuan market has breakthrough market space and long-term development potential.

Earnings forecast and investment recommendations are expected to be EPS 0 for 2018-2020.

49, 0.

60, 0.

75 yuan, closing prices on April 12 correspond to PE 29 respectively.

6, 24.

0, 19.

2 times.

It is expected that the company’s compound growth 杭州夜网 rate will be about 24% from 2019 to 2020. The company cooperates with Maotai and Wuliangye to develop the wine package business and cooperates with China Tobacco of Yunnan to develop new tobacco. We think the company has room for improvement.

Give the company a reasonable estimate of 25 times PE in 2019, corresponding to a reasonable value of 15.

0 yuan / share, maintain the company’s “Buy” rating.

Risk warnings: Tobacco control policies are becoming stricter, which impacts the demand for cigarette labels; Moutai and Wuliangye joint ventures are pushing ahead of expectations; and the risk of goodwill impairment.