Research says Soymilk industry enters a period of low growth

Northeast Securities pointed out in a research report that the soybean milk machine industry will enter the era of low growth, and the industry gross profit margin will continue to decline. Just last Saturday, Jiuyang, the leading company in the soybean milk industry, unexpectedly called for an equity incentive plan.

Northeast Securities pointed out in yesterday’s research report that the growth of the soybean milk machine market in the next two years is not optimistic. Soymilk brand increases and market competition continues to increase. Under the pressure of rising raw material prices and rising labor costs, the future industry gross margin level will be Continue to go lower. For Jiuyang, Northeast Securities pointed out that due to the company's small home appliances business is still relatively low contribution to its performance, its growth is difficult to make up for the poor performance of the soybean milk machine business performance on the company's drag.

The announcement on the Jiuyang Stock Exchange announced on Saturday that the main reason for the cancellation of the 2011 equity incentive plan of the company was that the continued implementation of the plan would damage the interests of the listed company. Therefore, it decided to withdraw the plan, and then find a suitable opportunity after the conditions matured. New equity incentive plan.

According to the previous equity incentive plan, the company plans to grant a total of 246 persons to the company’s directors, senior management personnel, and key management personnel, etc., at a price of 7.59 yuan per share, and grant 4.26 million restricted shares, accounting for 0.56% of the company’s total share capital. The specific incentive threshold is that the sales growth of the company from 2011 to 2013 is not less than 20% over the same period of last year.

Jiuyang said that with the gradual development of the company's water purification business, a group of mid- to high-end composite management, technology, and sales backbones have been newly introduced and equity incentives are urgently needed. However, the original plan did not cover the backbone of this segment. At the same time, after the announcement of the company's equity incentive plan, the People's Bank of China has raised the deposit reserve ratio five times and raised the benchmark interest rates for deposits and loans twice. This has caused the company’s current incentive target to increase the cost of restrictive stocks, causing a sharp increase in risk. The implementation of the company's 2011 restricted equity incentive plan has brought certain difficulties.