Tianwei Food (603317): Chuanwei’s masterpiece of compound seasoning faucet

Tianwei Food is on a good track. At the same time, the company’s competitive advantage clearly benefits from the increased use of compound seasonings in home cooking and the convenience and taste of compound seasonings.The proportion in the condiment market may continue to increase.

Tianwei Foods has a compound condiment brand with a wide market influence such as “Good People” and “Dahongpao”. At the same time, the company has a relatively complete product research and development system and can continue to launch incremental innovative products that can provide the company with incremental products.In addition, the company has a huge distribution network covering 809 dealers across the country. The company’s advantages in brands, products and channels enable the company to fully benefit from the growth of the industry.

What do we expect Tianwei Food 2019?
In 2021, the EPS will be 0.

80 yuan, 0.

9合肥夜网9 yuan and 1.

20 yuan, for the first time, give “overweight” rating.

The development prospects of compound seasonings are good. Sichuan cuisine seasoning and hot pot seasonings are alternatives. The growth of the market for compound seasonings is mainly driven by two factors. The first is the increase in the use of compound seasonings in home cooking. The second is the standardization of compound seasonings.Retrofitting is more suitable for food service providers.

According to Frost & Sullivan’s prediction, the size of the Chinese compound seasoning market will increase from US $ 113.3 billion in 2018 to US $ 148.8 billion in 2020, and its share in the total Chinese seasoning market will replace the 20 years in 2018.

6% to 22 in 2020.


Szechuan cuisine seasoning and hotpot seasoning are specific categories in 杭州养生会所 compound seasoning.

Tianwei has advantages in products, channels and brands. It fully benefits from the development of products in the compound seasoning industry. Tianwei Foods has the ability to independently develop new products and new processes, and its technology level is leading the industry.

The company’s new products launched in 2017 and 2018 have received positive feedback from the market.

In terms of channels, in 2018, the company cooperated with 809 dealers, and the sales network covered about 30.

80,000 retail terminals, 5.

860,000 hypermarkets and 4.

10,000 catering chain single stores covering 31 provinces, autonomous regions and municipalities across the country, and a sales network covering the whole country has been established.

In terms of brand, the “Dahongpao” and “Good People” trademarks have been identified as “China’s Well-known Trademarks”, which have alternative market influence and appeal in the hot pot seasoning and Sichuan cuisine seasoning fields.

The initial incentive mechanism is diversified, and the cumulative performance of the fundraising projects has passed at least 2017. The company has basically formed a combination of expenditure and equity incentives for core entities.

We believe that this incentive mechanism will become a combination of the personal interests of leaders and the interests of shareholders of listed companies, and will be able to stimulate the subjective initiative of core leaders.

At the same time, the investment project will expand the company’s existing production capacity of Sichuan cuisine seasoning and hotpot seasoning products, alleviating the problem of insufficient capacity that has previously restricted the company’s development.

We are optimistic about the growth elasticity of Tianwei Food. For the first time, we have assigned an “overweight” rating. We believe that Tianwei Food’s competitive advantage will allow it to enjoy the development dividend of the compound condiment industry to the greatest extent.

What do we expect Tianwei Food 2019?
Revenues will reach 17 in 2021.

600,000 yuan, 21.

71 ppm and 26.

5.1 billion.

EPS will reach 0 respectively.

80 yuan, 0.

99 yuan and 1.

20 yuan.

Comparable company’s average evaluation level in 2019 is 47 times PE. Considering that the compound growth rate of Tianwei Food’s net profit is higher, giving Tianwei Food 19%?
20% estimated premium, corresponding to 55 in 2019.


40 times PE estimate, target price range is 44.


12 yuan, for the first time, give “overweight” rating.

Risk warning: channel development is not up to expectations; competition is intensified; food safety.