Jihong Shares (002803) Company Dynamic Comment: Mergers and Acquisitions Promote Industry Consolidation and Seek Growth as a Leader in QSR Packaging

Jihong Shares (002803) Company Dynamic Comment: Mergers and Acquisitions Promote Industry Consolidation and Seek Growth as a Leader in QSR Packaging

Event: The company signed an equity transfer agreement on April 25, agreeing to use RMB 5,396.

Acquired the remaining 67% equity of Anhui Weizhi Environmental Paper Co., Ltd. at a price of RMB 850,000. After the completion of the acquisition, Anhui Weizhi will become a wholly-owned subsidiary of the company.

Anhui Weizhi focuses on the opening of environmentally friendly paper containers, and has a certain reputation in the domestic food-grade packaging industry.

At the time of plastic limit, QSR packaging had a bright future.

QSR (Fast Food Restaurant) packaging is fast food packaging, which mainly refers to paper cups, paper bowls, food packaging paper, environmentally friendly paper bags, tableware and other products used for fast food, take-out, packaging, etc.

With the rise of the take-out industry, the pollution of plastic meal boxes has increased, and the progress of environmental plastics restriction has accelerated: Hainan has gradually started to ban the plastic from this year;Start research.

In addition, take-out giant Meituan has launched the “Aoyama Plan”. Are you hungry to launch the “Blue Planet” plan to encourage consumers to reduce the use of disposable tableware and promote the use of environmentally friendly paper bowls instead of plastic meal boxes; Starbucks has gradually stopped supplyingPlastic straws instead of paper straws.

At present, the size of the paper QSR packaging market is about 140 million, and the penetration rate has decreased. Most of the paper QSR packaging is large foreign chain restaurants. A large number of medium-sized restaurants still use plastic lunch boxes. If the take-out policy is introduced, the paper QSR packaging marketThe scale promotes rapid improvement, reaching more than 270 ppm.

With the combination of acquisition and fixed increase, Jihong’s segmentation in this market segment will increase rapidly and promote the concentration of the industry.

Anhui Weizhi holds major customer resources such as KFC, McDonald’s, Burger King, Subway, Rakuten and is one of the top 10 companies in the field of paper QSR packaging.

Large customers have higher requirements for packaging products, with large demand, strict requirements on supplier technology, production capacity and other qualifications. Through the acquisition of Anhui Weiwei, the company quickly filled the gap in the food-grade packaging field and obtained a large number of high-quality customer resources.

In addition, the company also plans to increase construction of Xiaogan. Langfang and Xiamen have three production bases, which are mainly used for paper QSR packaging production. The three bases are expected to contribute US $ 1.5 billion in revenue when they reach full capacity.

The simultaneous advancement of acquisition and fixed increase will help Jihong to quickly improve the market structure of the paper QSR packaging segmentation industry. We expect that Jihong will rank among the top five in the industry after the completion of the acquisition. It is expected to grow into a leader in the industry in the medium and long term.

The concentration of the paper QSR packaging industry is only about 30% of CR10. Jihong’s acquisition of Anhui Weizhi opens the industry integration pace, and it will increase the market share by increasing the code, which will promote the industry’s concentration and increase its bargaining power.

Internet + marketing empowers packaging, opens up offline traffic entrances, and QR code marketing business attempts to achieve QSR packaging to achieve heavy volume.

The company’s QR code marketing business is to make full use of its advantages in Internet technology, marketing strength, fast-dissolving customer resources, etc., and combine offline and online with a one-code one-code sweepstakes model, and use packaging as trafficEntrance, transforming every opportunity of consumer product packaging to contact customers into Internet data, providing customers with traceability, marketing, advertising, drainage and other services, while helping packaging customers to carry out preventive marketing, and maximize the marketing essence of FMCG packaging.

The QR code marketing business model is novel and has high barriers, offline traffic, advertiser resources, and marketing capabilities are indispensable. Jihong is uniquely able to meet these three major 北京夜网 requirements, build a deeper moat, and realize the traditional packaging business.Upgrade, huge space for future development.

At present, the company has reached cooperation with Hengan, Dali, Netease Koala and other enterprises.

In the future, through the heavy volume of QSR packaging, the company is expected to realize that QSR packaging will reach more large consumer groups, control considerable traffic inflows, and utilize the precise marketing capabilities of the subsidiary Dragon Star to optimize traffic matching and increase the conversion rate of drainage., Continue to enlarge the advantages of QR code marketing business.

Investment suggestion: The company’s acquisition of Anhui Weizhi will rapidly improve the market structure in the QSR packaging industry, promote the industry’s concentration, and simultaneously convert QSR packaging to achieve the growth of QR code marketing business.


28 yuan, corresponding to PE of 15 / 11x, maintain “strongly recommended” investment rating.

Risk reminder: The price of wood pulp fluctuates sharply, capacity construction is lower than expected, downstream demand is lower than expected, and industry competition is intensifying.