Yili shares (600887): Repurchase as equity incentive sword refers to the top five billion

Yili shares (600887): Repurchase as equity incentive sword refers to the top five billion

Event: The company issued a share repurchase plan announcement.

Share repurchase demonstrates long-term development confidence, and equity incentives strengthen interest binding.

The announcement intends to use its own funds to repurchase the company’s shares in a centralized bidding transaction, and the number of shares to be repurchased shall not be less than one.

500 million shares (accounting for 2 total shares).

5%), and not more than 300 million shares (accounting for 5 total shares).

0%) (both inclusive) and the repurchase price does not exceed 35 yuan / share.

Based on the 35 yuan / share repurchase price, the corresponding lower limit of the repurchase amount is 53 trillion, and the upper limit is 10.6 billion yuan; relative to the latest closing price of 28.

62 yuan / share, the repurchase price premium is about 22%.

The company’s repurchase demonstrates its firm confidence in long-term intrinsic value and boosts investor confidence.

After the repurchase is completed, the company intends to use the shares to implement equity incentives to more effectively unify the 杭州桑拿 interests of the company, management team and shareholders, and promote long-term development.

Dairy leaders reach the forefront, creating a billion health food group.

Yili’s medium- and long-term strategic goal is to enter the “Global Top 5 Dairy Products” by 2020 and become a “100 billion-level health food group”. The company will continue to activate the growth engine through both endogenous and extension.

1. Endogenous: The product structure has been continuously upgraded and the market share has steadily increased.

As a leading dairy product company, the company focuses on resources and creates key products and new products with remarkable results.

In 2018, the company’s key products grew at a rate of about 34%, and new product revenue accounted for about 15%, gradually increasing by 5.

There are 6 levels, of 重庆耍耍网 which the growth rate of the golden code is about 20%, the growth rate of Anmuxi is about 40%, the growth rate of Changyi 100% is more than 30%, and the growth rate of Changqing is more than 20%. Product innovation and upgrade are obvious.

As of the end of 2018, the company’s room temperature milk market accounted for 36 replacements.

8%, an increase of 2 per year.

3 units; low-temperature milk market accounts for 16.

6%, increasing by 0 every year.

5 units; infant milk powder market share reset 5.

8%, 0 per year.


Through the company’s channel segmentation and the revenue of key products continued to increase, the company’s revenue scale and city share gradually increased.

2. Extension: category, regional double expansion, huge space for medium and long-term growth.

In the end, the company locked in the field of health foods and expanded its business scope through product innovation and categories. At present, it has improved in functional beverages, plant proteins, mineral water and other fields. Substitute companies have entered overseas markets through outsourcing mergers and acquisitions, and weaving the global network.Related businesses have been extended to New Zealand, Pakistan, South Korea, Thailand and other countries, opening up room for growth and achieving stable growth in the medium and long term.

Profit forecast and rating.

It is estimated that the compound growth rate of company income and net profit attributable to mothers in 2019-2021 will be 13% and 10%, and EPS will be 1.

13 yuan, 1.

26 yuan, 1.

40 yuan, corresponding PE is 25X, 23X, 20X.

As the industry leader and the market share continues to increase, the company maintains a “Buy” rating.

Risk warning: risks such as food safety, raw milk prices surpassing expectations, and increased competition in the industry.