financial Associated Press (Qingdao, reporter Xiao Lianghua) news, the Spring Festival is coming. How about the production and marketing of “prefabricated vegetables” directly related to the new year’s Eve dinner? The financial Associated Press reporter recently investigated the spring snow food (605567. SH) with white feather chicken series prefabricated dishes as the main product. Li Yanlin, the company’s secretary, said that the company has many chicken conditioning varieties. According to the current situation, the sales volume of this year’s Spring Festival will increase month on month.
“The improvement of demand boom began in the third quarter of 2021,” Li Yanlin said frankly. The orders of the company’s prepared products (prefabricated vegetables) increased significantly, and the fried and electric roasted products have been in full production.
According to the financial Associated Press reporter interviewed a number of relevant enterprises, the booming production and marketing is a common situation in the prefabricated vegetable industry, and the “Spring Festival” further “urges the market demand. In an investigation, the Secretary of Shandong Delisi Food Co.Ltd(002330) (002330. SZ) said that the sales volume of the company’s New Year gift box doubled, Shandong Xiantan Co.Ltd(002746) (002746. SZ), Shandong xinhesheng food group and other enterprises expanded their production one after another.
during the Spring Festival, orders for prefabricated vegetables increased significantly
Prefabricated dishes refer to finished or semi-finished dishes made from Shenzhen Agricultural Products Group Co.Ltd(000061) , livestock and poultry, aquatic products and other raw materials with various auxiliary materials through pre-processing (such as cutting, stirring, pickling, rolling, forming, seasoning, quick freezing and freezing).
The intergenerational change of “spoon power” of new year’s Eve dinner is more obvious under the influence of the epidemic, and the popularity of prefabricated dishes among young people is rapidly increasing. Public data show that up to now, before the Spring Festival this year, the sales of “prefabricated vegetables” on Taobao, dingdong shopping, boxed horse fresh and other platforms have soared. In Taobao, the sales volume of “prefabricated vegetables” during this year’s annual goods Festival increased by more than 100% year-on-year. In Ding Dong’s shopping, Kwai Chi dishes (that is, simply heating edible ingredients) increased by 400% over the same period last year. Some of the dishes were over 980% higher than the previous week.
Zhang Lei, a practitioner of Qingdao prefabricated dishes, said that at present, 35 year old young people are taking the lead in the new year’s Eve dinner, and these consumer groups are also more willing to try prefabricated New Year’s dishes. In addition to white feather chicken conditioning products, there are “family photos” that have been launched in HEMA, and various fish prefabricated dishes developed by Zhanjiang Guolian Aquatic Products Co.Ltd(300094) , which meet the needs of young people in terms of variety and quality.
Zhang Lei said that white feather chicken conditioning products have cheap raw materials and rich consumption scenes. Among all kinds of prefabricated dishes such as dishes, fish and meat, they are most capable of cultivating medium and large-scale chain brands, such as foreign fast food brands KFC, McDonald’s and Zhengxin chicken chops emerging in China in recent years. These downstream chain brands will further bind upstream enterprises and promote the improvement of industry scale.
Springsnow Food Group Co.Ltd(605567) at present, it is the third largest manufacturer of chicken conditioning products in China. From 2017 to 2019, the market share of the company’s chicken conditioning products was 2.36%, 3.51% and 4.07% respectively.
In order to meet the market demand, the company continues to expand production capacity. Li Yanlin introduced that in 2021, the company added about 14000 tons of conditioning products, and the company’s conditioning products production capacity exceeded 70000 tons. In addition, the raised investment projects, including 40000 tons of conditioning products per year and 50 million new slaughters per year, are currently under construction and are scheduled to be put into operation by the end of 2022. “After the new production capacity is put into operation, the market share of the company will be greatly improved and the scale advantage will be further enhanced.”
From the perspective of revenue, Springsnow Food Group Co.Ltd(605567) conditioning products have increased from 42.33% in 2018 to 54.42% in 2020. In terms of gross profit margin, the gross profit margin of the company’s conditioning products is close to 20%, while that of fresh products fluctuates around 10%. Li Yanlin said that the company will further increase the proportion of the revenue of conditioning products and improve the overall gross profit margin of the company.
In terms of industry, a number of enterprises related to prefabricated vegetables are expanding their production scale. Liu Peng, the Secretary of the board of directors, said during the investigation of the reception organization in January this year that the capacity of the company’s Prefabricated vegetables in 2021 is about 30000 tons, and the capacity of prefabricated vegetables under construction is 150000 tons. It is expected to achieve full production in 2024. Fujian Sunner Development Co.Ltd(002299) , Shandong Xiantan Co.Ltd(002746) are also increasing the production capacity and revenue proportion of prefabricated vegetables.
AI media consulting data show that the market scale of China’s Prefabricated vegetables in 2021 is estimated to be 345.9 billion yuan. The prefabricated vegetable market will accelerate to the B and C ends at the same time, and then increase year by year at a growth rate of 20%. The scale of prefabricated vegetables in China will be about 516.5 billion yuan in 2023.
expand channels and speed up the pace of new product launch
Compared with the United States, Japan and other countries, the concentration of China’s Prefabricated vegetable market is very low. Tianyan survey shows that there are 72000 prefabricated vegetable enterprises in China, most of which are small, and there are no leading enterprises with national dominance.
What are the advantages of Springsnow Food Group Co.Ltd(605567) in the prefabricated vegetable track? Li Yanlin said that the company has the advantages of the whole industrial chain. Starting from the breeding end, it implements high standards, and the product quality has a competitive advantage. “KFC, DEX and other fast food enterprises have high requirements for the supply chain, and the company’s products can fully meet their requirements. Therefore, it is relatively easy for the company to expand new customers.”
However, Li Yanlin further said that because the implementation standards of all links are high, the company’s products do not have advantages on the cost side, or even slightly higher than those in the same industry. “Correspondingly, the selling price of the company’s products will be slightly higher.”
The financial Associated Press reporter noted that the company has actively expanded the market and strengthened brand construction in recent years. In terms of overseas markets, Li Yanlin told the financial associated press that Springsnow Food Group Co.Ltd(605567) is one of the few enterprises with the export qualification of white feather chicken conditioning products. The amount exported to Japan and the European Union has increased rapidly. In the future, the company will continue to increase the development and expansion of overseas markets; In the Chinese market, on the one hand, the company actively guides the transformation of original customers, on the other hand, it strengthens the communication and cooperation with downstream emerging brands. According to the financial data, the company’s overseas market revenue accounted for only about 7% in 2018 and increased to 16% by 2020.
Li Yanlin said that the current ratio of b-end and C-end of the company’s Prefabricated vegetable products is about 7:3. In the future, the company will increase R & D investment, develop b-end and C-end products respectively, speed up the pace of new product launch and respond to the needs of consumers more quickly. Tiktok Kwai C, Future Ltd in the business channel, in addition to official shopping mall, settled in the shaking and quick hands and other platforms, will actively try various new platforms and cooperation mode, enhance the channel of electricity business revenue.
