Chinanews client, Beijing, August 25th (Zuo Yukun) Seven things to open since ancient times, firewood, rice, oil, salt, sauce and vinegar tea. Among them, seasoning occupies half of the country, enough to see its importance in the daily lives of ordinary people. However, compared with a wide variety of main cooking ingredients, seasonings as supplementary foods still play a supporting role.
Recently, however, the seasonings have changed their low-key attitude. From Haitian's soy sauce to Hengshun's vinegar, they are always obscure in the kitchen and willing to assist them. Standing in the C position also "kills the Quartet."
Data map: The villagers are cooking farm meals. Photo by Ai Qinglong
The market value surpasses Sinopec, Haitian flavor industry is not "soy sauce"
On July 30, the Hurun Rankings released the "2020 Hurun China Top 10 Food and Beverage Companies", listing the top 10 local food and beverage companies in China. Unexpectedly, the final winner turned out to be Haitian Weiye, the main soy sauce company.
“What’s more interesting is that China’s most valuable food companies are condiments. In the six months since the outbreak, the value of Haitian Flavor Industry has increased by 180 billion to nearly 500 billion, which is almost the sum of its last three values.” Hurun Report, Chairman and Chief Research Officer, Hu Run, said that the main reason is that soy sauce and other condiments are necessities of consumers and are also the direction of investors' attention in the "post-epidemic era"-rigid demand.
The picture shows workers canning the prepared soy sauce. Photo by Wang Dongming
If this list has not attracted much attention to Haitian Soy Sauce, then during this period of time, the stock price of Haitian Flavour has been soaring so that everyone can finally see that the "top stream in the seasoning industry" has actually reached this point. Kind of degree.
August 18 is an important day for Haitian. As of the close of the day, the share price of Haitian Flavor was reported at 158.33 yuan per share, and the total market value exceeded the 500 billion mark, reaching 513.1 billion yuan. As of the close on August 24, the market value of Haitian Flavor has reached 534.868 billion yuan.
What is the concept of more than 500 billion yuan? In the food industry, the current market value of Haitian Flavour is about 2.5 Yili, 13 Peach and Plum Bread, and 16 Qiaqia Food. Looking at the entire A-share market, Haitian Flavour has surpassed Midea Group, a leading home appliance company, Hengrui Pharmaceuticals, a leading pharmaceutical company, and even surpassed Sinopec, the second largest oil giant in the Fortune 500.
Seeing this, do you also want to say "disrespectful" to Haitian Soy Sauce in your kitchen?
A 120% increase during the year, Hengshun Vinegar's share price hit a new high
The soy sauce is on fire, and as the seasoning leader, the vinegar naturally has to keep up. The most interesting vinegar player is Hengshun Vinegar, the representative of Zhenjiang Fragrant Vinegar, one of the "Four Famous Vinegars", and the only A-share listed and time-honored vinegar company.
A few days ago, Hengshun Vinegar Industry released a half-year report, and the company's net profit and total operating income both hit new highs in the same period in the past three years. In the first half of this year, revenue was 953 million yuan, a year-on-year increase of 7.39%, and net profit attributable to the parent was 149 million yuan, a year-on-year increase of 3.63%.
While the semi-annual report has achieved brilliant results, the share price of Hengshun Vinegar has reached a new high. As of the close on August 24, it closed at 26.00 yuan, an increase of 120% compared to 11.74 yuan at the beginning of the year.
The picture shows the vinegar craftsman looking at the dried vinegar in the vinegar jar. Photo by Li Yang
Although it has maintained a steadily advancing posture, the market value of Hengshun Vinegar Industry, which is also the "industry leader", of 26 billion yuan, seems to be slightly "shabby" compared to the Haitian flavor industry that has exceeded 500 billion yuan. In fact, this is not unrelated to the overall situation of my country's entire condiment industry.
Although soy sauce and vinegar are the top two categories in China’s condiment industry, data from the China Industrial Research Institute shows that in 2018, soy sauce and vinegar accounted for 60% and 20% of Chinese residents’ condiment consumption, respectively. The proportion of consumption is three times that of vinegar.
At the same time, unlike the crowded soy sauce track, the concentration of vinegar is very low at this stage. According to the "Analysis of China's Vinegar Industry Market Status and Development Trends in 2019" issued by the Qianzhan Industry Research Institute, the top five companies in China's vinegar industry in 2018 only accounted for approximately 16.2% of the market. The share is only 6.5%.
Shanxi Securities believes that the development of the vinegar industry is currently in the middle and early stages of branding, which is the early stage of growth. Consumers' brand awareness is increasing. Compared with Japan, it is estimated that Chinese vinegar still has three times the room for growth. If we can break through regional taste differences and expand catering channels in the future, the vinegar market will have more room for growth.
"Chinese Little Master" detonates the seasoning
Not only the dragon's hair strength, but also many seasoning brands have ushered in their bright moments during this period.
"MSG first stock" Lotus Health returned from bankruptcy and reorganization, and in the first half of 2020, it achieved the first deduction of non-net profits in nearly a decade and a turnaround. On August 21, the health of Lotus rose rapidly during the intraday trading and hit the daily limit again. Flush ifind data shows that the stock has reached its daily limit 23 times in the past year.
Qianhe Weiye, which aims at the high-end zero-additive soy sauce market, released a semi-annual report on August 15. During the reporting period, Qianhe Flavour Industry achieved operating income of 799 million yuan, a year-on-year increase of 34.53%; net profit achieved 157 million yuan, a year-on-year increase of 79.85%, the highest since its listing in the same period.
Benefiting from the impact of the performance rebound, Qianhe Flavours reached an intraday limit on August 17, with a price of 38.50 yuan, a record high. As of the close of trading on August 24, Qianhe Flavour's quotation has risen to 42.91 yuan.
Also setting a record high was Zhongju Hi-tech, which is also on the soy sauce circuit. Its semi-annual report released on August 20 disclosed that the company achieved a profit of 455 million yuan in the first half of the year, a year-on-year increase of 24.31%. In the eyes of many institutions, Zhongju High-tech's performance in the first half of the year has exceeded expectations.
On the morning of August 21, Zhongju High-tech's stock price once hit the daily limit. Data shows that the stock's daily limit is very rare in its history. The last time the company blocked the daily limit was in February 2016.
The picture shows a stall owner spreading cakes to customers. Photo by Hong Jianpeng
Do you still remember the "Chinese Little Masters" who made Liangpi cakes at the house at the beginning of the year? In the first quarter of this year, residents affected by the epidemic were restricted from going out, the catering industry basically stagnated, and the consumption scene shifted to the home side. It is not surprising that the demand for seasonings from the home channel has increased significantly.
"The epidemic accelerates the differentiation of the industry, which is conducive to the concentration of shares to big brands." Huajin Securities pointed out that the epidemic will accelerate the differentiation and exit of small and medium-sized enterprises, which will help large companies increase their market share.
Be more cautious under the "rising voice"
“On the whole, Haitian’s valuation must be inflated. It is the broker’s hype and pushing up.” According to Zhu Danpeng, a Chinese food industry analyst, Haitian is the largest and most profitable company in the condiment industry. As the industry leader, it is sought after, favored and elevated by the entire capital, which is in line with the characteristics of capital.
But at the same time as Haitian’s “rising voice”, there are also more and more voices questioning whether it is still a bit difficult to prop up a market value of more than 500 billion yuan with soy sauce.
According to Haitian Flavour Industry’s 2019 annual performance report, the company’s 2019 revenue was 19.797 billion and net profit was 5.333 billion, a year-on-year increase of 16.22% and 22.64% respectively. The momentum is very strong, but this figure is obviously still very inconsistent with its market value.
At the same time, according to data from Euromonitor, an international third-party consulting agency, household consumption accounts for 32% of the total scale of the condiment industry. It is estimated that the total scale of my country's condiment industry will not exceed the 500 billion mark until 2023. In other words, even if the entire condiment market belongs to the Haitian flavor industry, it is currently impossible to reach a value of more than 530 billion.
Data map: Guangzhou Customs officers regularly supervise export condiment companies. Photo by Liao Jiankang
"We can see that many stocks, including Moutai, basically have few retail investors. Institutional holdings are very large. Institutions use their own influence and professionalism to continuously push up their holdings. Stocks.” Zhu Danpeng believes that although this is a normal phenomenon, the overall bubble is already very large.
Haitian flavor industry is naturally aware of this problem and has been constantly trying to widen the track. Recently, its official flagship store on Tmall low-key launched four hot pot base ingredients. Industry analysts believe that this may be a new growth point for Haitian Flavour Industry to seek breakthroughs.
When the "strongest food company" Haitian meets the "strongest national cuisine" hot pot, do you think there will be sparks? (Finish)