On January 28, Zhejiang Yiming Food Co.Ltd(605179) (605179. SH), which focuses on “dairy + baking”, released a performance forecast. It is estimated that the net profit in 2021 will be 20-30 million yuan, a year-on-year decrease of 77.35% – 84.9%; The net profit after deducting non-profit was 7 million yuan to 10.5 million yuan, a year-on-year decrease of 91.13% ~ 94.09%.
The interface news reporter noted that the previous semi annual report of 2021 showed that from January to June, the company achieved an operating revenue of 1.1 billion yuan, an increase of 37.83% over the same period last year; The net profit attributable to the shareholders of the listed company was 60.0231 million yuan, an increase of 4.15% over the same period last year. The net profit attributable to shareholders of Listed Companies in the first three quarters of 2021 was 61.5396 million yuan, down 37.79% year-on-year.
According to the performance forecast, it means that in the fourth quarter of 2021, Zhejiang Yiming Food Co.Ltd(605179) loss reached 31.5396 million yuan – 41.5396 million yuan.
According to the data, Zhejiang Yiming Food Co.Ltd(605179) originated in Wenzhou, Zhejiang Province and landed on the Shanghai Stock Exchange on December 28, 2020. The company’s business model of professional food chain stores with “dairy + baking” health food combination as the content. At the same time, the company also has the advantage of integrated whole industry chain. While establishing its own central factory, cold chain logistics system and milk bar retail network, the company also has its own demonstration pasture.
For the company’s difficulties in the second half of 2021, Zhejiang Yiming Food Co.Ltd(605179) pointed out that the third quarter and the fourth quarter were successively affected by the spot development of covid-19 epidemic in Jiangsu, Zhejiang and Shanghai, resulting in a significant decline in the passenger flow of stores in the company’s business areas, and a serious decline in the passenger flow of transportation hub stores and school type stores, resulting in a great adverse impact on the sales of store products.
On the other hand, it comes from the reduction of short-term output brought by the pace of expansion. This year, the company strengthened the channel expansion and marketing publicity investment in Jiangsu, Zhejiang and Shanghai. In the third and fourth quarters, it concentrated on opening 386 Direct stores, and gave certain early-stage cultivation policies to the newly developed distribution channels, resulting in a significant increase in sales expenses compared with operating revenue.
In addition, with the continuous high impact of upstream feed prices this year, the cost of raw materials such as fresh milk and eggs of the company has increased, and the new production bases in Jiaxing and Changzhou have been fixed successively in the second half of the year, resulting in a decline in the gross profit margin and overall gross profit of the company’s products in all channels.
To sum up, Zhejiang Yiming Food Co.Ltd(605179) said that although the operating revenue increased with the increase of the number of stores this year, the overall operating profit decreased significantly year-on-year due to the comprehensive impact of the epidemic situation in the above regions, sales expenses and cost factors. In the follow-up, the company will further strengthen the optimization and improvement of store performance and the enrichment and expansion of various types of sales channels, in order to restore and improve business performance as soon as possible.
In the long run, it is still an important way to Zhejiang Yiming Food Co.Ltd(605179) maintain competitiveness by opening up markets to reduce costs, costs, single point impact and other risks. Food industry analyst Zhu danpeng also told the interface news reporter that as a market-oriented brand with strong regional competitiveness, Zhejiang Yiming Food Co.Ltd(605179) will face increasing competitive pressure and overall operating costs. If the brand strength does not meet the standard and blindly explore the market, the risk is huge.
In addition, Zhu danpeng believes that, including the impact brought by the rise of “new retail” format and the impact brought by the rapid emergence of “milk tea + baking” stores, it also puts great pressure on Zhejiang Yiming Food Co.Ltd(605179) with heavy assets, unified distribution and lack of flexibility of products.
In terms of share price, after Zhejiang Yiming Food Co.Ltd(605179) was listed, the share price was once seven consecutive boards, and then it was in shock adjustment. It hit a maximum of 22.09 yuan / share in nearly a year on June 1, 2021, and then it continued to go down the channel. The data show that the stock has fallen by 11.75% since 2022, and closed at 13.37 yuan on January 29, with an increase of 1.06% on that day.
