Guangzhou Restaurant (603043): Changes in fundraising projects are in line with development strategies and market trends

Guangzhou Restaurant (603043): Changes in fundraising projects are in line with development strategies and market trends

The event company issued an announcement to change some of the fundraising projects: Likoufu Guangzhou Base Expansion Project changed part of the main body, internal implementation structure and implementation location; 8,598 million food retail network project was invested in Xiangtan Base (Phase 1); catering store construction project onlyThe main investment point of the implementation change is changed reasonably. The investment project is reasonably changed, which is in line with the company’s development status and development plan.

The Guangzhou base focused on increasing the capacity of quick-freezing, and the waxing and baking workshops were moved to Meizhou and Xiangtan.

The investment amount of Guangzhou base project is deducted 1.

4.3 billion (originally planned to raise investment funds 2.

1.3 billion, own funds 0.

6.5 billion, has invested 0.

600 million), the implementation 四川耍耍网 location of the waxy and baking workshops were moved to Meizhou and Xiangtan bases, respectively, and the expenditure funds were 0.

17 and 0.

53 trillion, the completion time is expected to be delayed until December 2020.

At present, the construction of the plant has been completed; the civil engineering of the cold chain distribution center has been completed; the quick-freezing workshop has completed some technical reforms and equipment solutions; the purchase and installation of key equipment has not yet been completed; the central catering workshop has been completed; the waxy workshop has been partially completed.
In the end, the project expanded the company’s production capacity to 7,040 tons, with 18 years of sales revenue1.


The number of directly-operated stores will be reduced appropriately, 苏州夜网论坛 with a focus on the construction of Xiangtan base.

Retail network project originally planned to invest 1.

2.3 billion construction of 230 directly operated stores in Guangzhou, Shenzhen, Zhongshan, Dongguan, Zhuhai and other places, occupying 0.

1.4 billion completed the construction of 34 stores, breaking sales revenue of 4,871.

99 million yuan.

Now adjusted to invest separately 0.

28, 0.

09 billion in 60 construction in Guangzhou, 20 in Foshan (executed by Foshan Sun, a subsidiary of Likoufu), and leased properties. It is expected that the average annual sales income will be realized in the future.

08 thousand yuan.

0 remaining.

The 8.6 billion raised investment will be used for the construction of the Xiangtan base to increase the production capacity of moon cakes and fillings.

Basic maintenance of catering projects, and implementation of main body changes.

Investment amount of catering store construction project 1.

The plans of 4 billion stores in Guangzhou and Shenzhen and other departments have remained unchanged, and the plan completed in December 19 has not changed.

However, the main body of the implementation of the Shenzhen store was changed to Shenzhen Catering Company, a wholly-owned subsidiary of the wholly-owned subsidiary Catering Management Company, and the management system for catering expansion was gradually streamlined.

The first phase of Xiangtan Base’s supplementary fundraising project has increased production capacity and promoted acceleration.

Xiangtan Base Phase I planned investment 2.

3.8 billion, including 99.69 million of own funds and raised funds1.

3.9 billion (0 attracted by retail network projects.

8.6 billion and 0 for the Guangzhou base project change implementation site investment.

5.3 billion).

The first phase of Xiangtan base mainly increased the production capacity of mooncakes, fillings and other baked foods. The output of mooncake products is expected to not exceed 2,000 tons / year after the production is reached, and the output of filling products is expected to not exceed 6,000 tons / year, which is consistent with the previous planning of Xiangtan base.After the production is completed, sales income can be realized.

8.1 billion.

The construction of the first phase is expected to be 18 months. According to the previous announcement, the land use right of the project was awarded at the end of September 2018, and it is expected to contribute some mooncake production capacity in 19 years.

In addition, according to the announcement of Congress, the entire project also includes 12,000 tons / year of quick-freezing capacity, which is planned to be completed and put into operation in 36 months.

Capacity expansion should be adapted to local conditions, coordinate base construction, and improve production management efficiency.1) The company’s business scale is constantly expanding, and there is an urgent need for rapid expansion of large-scale production capacity and advanced automated production equipment. The existing Guangzhou plant and its No. 3 workshop cannot meet the requirements.

2) The three bases in Guangzhou, Xiangtan, and Meizhou are tailored to local conditions. In the short term, Guangzhou will focus on quick-freezing capacity, Meizhou will focus on the development of savory production capacity, and Xiangtan will rely on the lotus seed base to develop mooncake and filling capacity, coordinate its positioning, and affect the company’s cross-region development.

3) The 19-year maximum production capacity is expected to continue to decrease: It is expected that the Guangzhou No. 3 plant will gradually reach capacity; the construction of Xiangtan Base is expected to accelerate, and it is expected that part of the filling material capacity will be released before the Mid-Autumn Festival; volume, and some simple products are expected to be produced through sub-processing.

The channel layout follows the trend, and online channels are unstoppable.

1) The cost of property acquisition, rental cost, increase of labor cost and change of business model, the company has set higher access conditions for the locations of direct-operated stores, expected benefits, etc., thereby reducing the number of store layouts accordingly.The project occupation period has been extended.

2) The company vigorously develops online channels, and the Tmall platform’s 18-year mooncake placement growth rate is estimated to exceed 50%.

It is expected that in 19 years, it is expected to attract core sales talents, coordinate the sales team, integrate channels, and strengthen online and offline collaboration.

Profit forecast: According to the economic environment and continuous tracking, the profit forecast is appropriately adjusted, and the attributable net profit is expected to be 18-20 years4.

24 (+24.

7%), 4.

99 (+17.

5%), 6.

09 (+22.

2%) billion yuan, EPS is 1.

05, 1.

23, 1.

51 yuan, corresponding to 28 for PE.

91, 24.

61, 20.

15 times.

Risk warning: less-than-expected capacity expansion, less-than-expected channel sales, and macroeconomic fluctuations.