Yanjin store’s net profit of 260 million yuan in advance is a hidden worry in the channel, the baking business competition is intensified, and e-commerce is still a short board

In 2020, Yanjin shop will have a boundless scenery. The company expects to make a profit of 240 million to 260 million yuan, which may double that of the previous year. In the secondary market, the share price has also doubled, with a market value of more than 13.8 billion yuan. < / P > < p > once, Yanjin shop was the leader in bean products and dried fruit industry, but its profitability was not strong. In 2017, Yanjin shops began to transform and focus on baking business. This transformation has improved the company’s operating performance and achieved rapid growth. < / P > < p > however, although Yanjin shop has no immediate worries, it still needs long-term consideration. The current situation is that there are more people entering the baking business, such as peach and plum bread, Yiming food and so on. There are many strong competitors, and the market competition is intensified. Yanjin shop how to achieve sustained and rapid growth of baking business, need a good plan. In addition, the company highly relies on offline channels. In the mobile Internet era, with the trend of fast pace of work and life, online channels are more popular with salaried people. < / P > < p > Yanjin store’s initial business preserved fruit still has strong competitiveness, which is also worthy of attention. At present, liangpin shop and three squirrels are in a large-scale layout. Whether Yanjin shop can keep its original market also needs to be carefully considered. < p > < p > in early December 2020, yanjinpuzi disclosed the share repurchase plan, which is not less than 150 million yuan and not more than 250 million yuan. Through the secondary market, yanjinpuzi plans to buy back shares through centralized bidding, with the repurchase price not less than 150 yuan / share and the repurchase period of 6 months. < / P > < p > according to the company, this share repurchase is based on the firm confidence of the company in its long-term intrinsic value. At the same time, in order to further establish and improve the long-term incentive mechanism of the company, and comprehensively consider the company’s financial situation and future profitability, the company launched the share repurchase scheme. The shares repurchased are used for the later implementation of equity incentive plan. < / P > < p > according to the third quarterly report of 2020, in the first nine months, the company achieved an operating revenue of 1.434 billion yuan and a net profit attributable to shareholders of listed companies (referred to as net profit) of 189 million yuan, up 46.15% and 110.00% year on year. The net profit after deducting non recurring profit and loss (hereinafter referred to as deducting non net profit) was 142 million yuan, a year-on-year increase of 122.82%. < / P > < p > the company estimates that in 2020, its net profit will be 240 million yuan to 260 million yuan, with a year-on-year growth of 87.45% – 103.07%. Compared with the first three quarters, the net profit in the fourth quarter is expected to be 51 million yuan to 71 million yuan, which is basically the same as the first three quarters. < / P > < p > such a brilliant performance is rare in the leisure food industry. In the first three quarters of 2020, the net profits of three squirrels and Laifen all decreased significantly. < / P > < p > in view of the high-speed growth of annual business performance, Yanjin shop explained in the performance forecast mainly due to three reasons. First, on February 8, 2017, after the listing of the company, the company optimized and adjusted its strategy, consolidated its foundation for transformation, and achieved results in upgrading its product strategy, channel strategy, and regional development strategy. The first curve of leisure (salty) snacks has been steadily rising, the second curve of leisure baked snacks has been greatly improved, the third curve of nuts and dried fruits is being cultivated, and the fist product matrix is gradually forming. The company’s steady operation strategy of multi brand, multi category, Omni channel and whole industrial chain, together with the “double island” strategy of Shangchao, has made the overall business revenue maintain a stable growth. Second, the company pays attention to both scale and efficiency, constantly optimizes the allocation of resources, and the cost and expense control is becoming more and more benign. Third, the company has implemented equity incentive, and the effect is good. < / P > < p > business performance data shows that in 2017, Yanjin store achieved an operating revenue of 754 million yuan and a net profit of 66 million yuan, a year-on-year change of 10.38%, – 23.25%, and a non net profit deduction of 32 million yuan, a year-on-year decrease of 52.09%. < / P > < p > in the secondary market, starting from 2020, the stock price of Yanjin shop has risen sharply. At the beginning of the year, its share price was 36.50 yuan / share, and at the end of the year, it was 111.12 yuan / share, with a year-on-year increase of 204.44%. < / P > < p > in 2020, affected by the epidemic, the e-commerce supply chain will be impacted, but the large-scale business will not be significantly affected because of the abnormal business. It is because of this that the business super channel helps the company’s business performance grow at a high speed. Different from the business model of three squirrel companies in the same industry, Yanjin store adopts the independent production mode, and its sales channels mainly rely on direct supermarkets and distributors. The three squirrels are mainly sold by e-commerce. In recent years, online retail has been laid out, while liangpin stores have developed online and offline sales in a balanced way. < / P > < p > compared with the sales mode of the same industry companies, Yanjin shops rely on direct business supermarket, which has both advantages and disadvantages. The disadvantage is that in the era of mobile Internet, salaried people have a fast pace of work and life, and they don’t have many opportunities to shop in supermarkets, and they don’t have the habit of shopping in supermarkets. Generally speaking, wage earners are the main force of consumption. < / P > < p > the e-commerce business of Yanjin shop is mainly undertaken by Hunan Yanjin shop e-commerce Co., Ltd. In 2019, the company realized an operating revenue of 47.2429 million yuan and a loss of 6.4321 million yuan. In the first half of 2020, the company achieved an operating income of 71.7121 million yuan, a substantial increase over the previous year, and a net profit of 6.2944 million yuan, turning losses into profits. Its business income accounted for 7.59% of the company’s main business income. < p > < p > according to the public information, in 2005, after Zhang Xuewu and Zhang Xuewen took over the workshop style small food factory from their parents, they planned to operate the brand and established the Yanjin shop brand. At the beginning, the company started with preserved fruits, and gradually extended to bean products. According to the prospectus, bean products accounted for 32.18% of Yanjin store’s revenue in 2013. The revenue of preserves was 114 million yuan, accounting for 25.21%. Fried goods, vegetarian food and others accounted for 11%, 10.32% and 2.36% of the revenue respectively. By 2016, bean products accounted for more than 50% of the total revenue, while preserves, meat products, fried goods and vegetarians accounted for 14.35%, 12.61%, 10.42% and 7.8% respectively. < / P > < p > in 2017, Yanjin shop’s operating revenue continued to grow rapidly, its net profit decreased by more than 20%, and the deduction of non net profit was even more significant, indicating that its main business profitability declined significantly. < p > < p > after its launch, Yanjin store implemented industrial transformation and marched into the baking field, launching a series of products such as 58 day shelf life toast. In 2018, the revenue of baking products was 178 million yuan, accounting for 16.06%. In 2019, the proportion will rise sharply to 29.30%, and in the first half of 2020, the proportion will be 32.21%, which will continue to rise. In addition, the company layout of surimi products, meat and fish products. < / P > < p > at present, the concentration of domestic baking industry is not high, but with the continuous expansion of the market scale, more and more enterprises rush into the food market. In addition to international brands such as Manhattan, holleyou, breadfruit Xinyu, Yamazaki bread and binbao, local brands such as Taoli bread and Dali food have been in the market for many years, occupying a large market share. In the first three quarters of 2020, the operating revenue of Taoli bread was 4.372 billion yuan. < / P > < p > can Yanjin shop, which lost the market in the dry fruit industry, be found in the baking industry? Highly dependent on offline Yanjin shops, it is worth considering whether it is necessary to complete the sales channel reform as soon as possible. < / P > < p > Disclaimer: the purpose of this article reprinted by CNFC is to convey more information, and it does not represent the opinions and positions of CNFC. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk. < p > < p > Chinanet is a state key news website under the leadership of the Information Office of the State Council and the management of China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website publishes information 24 hours a day. It is an important window for China to carry out international communication and information exchange.