In 1998, when Chen Xianbao decided to develop melon seeds, there was almost opposition within the company. After all, there were many brands such as fool melon seeds in Anhui market at that time, but Chen Xianbao still insisted on his own opinion.
Thirteen years later, Chen Xianbao was listed on the Shenzhen stock exchange with Chacha Food Company Limited(002557) (002557. SZ), and later established his own “melon seed Empire”.
On the evening of February 22, Chacha Food Company Limited(002557) disclosed the performance express of 2021. During the reporting period, the company achieved a total operating revenue of 5.985 billion yuan, a year-on-year increase of 13.15%; The net profit attributable to the parent company was 930 million yuan, a year-on-year increase of 15.52%.
Although the performance growth remains the same, the performance growth rate of Chacha Food Company Limited(002557) has declined in recent years.
performance growth has decreased for two consecutive years
From 2011 to 2021, the company’s operating revenue increased from 2.739 billion yuan to 5.985 billion yuan, and the CAGR (compound annual growth rate) was 8.13%; The net profit attributable to the parent company increased from 213 million yuan to 930 million yuan, with a CAGR of 15.88%.
During the period, Chacha Food Company Limited(002557) had a year-on-year decline in net profit attributable to the parent company in 2013, 2016 and 2017, but the performance growth of the company basically remained above 30% from 2018 to 2020.
For performance growth in 2021, Chacha Food Company Limited(002557) in the announcement on the evening of February 22, it was considered that the main reason was “The company actively explores the channel intensive cultivation mode, builds the channel intensive cultivation information platform, defines the positioning of e-commerce channels, constantly expands new channels and new scenes, and the sales scale continues to grow; continues to optimize and upgrade the product structure, timely adjusts the ex factory price of some products in combination with the market situation, and the overall production and operation of the company are carried out in an orderly manner.”
According to the Research Report of Minsheng securities, from the perspective of the whole year, Chacha Food Company Limited(002557) has achieved steady growth since the second quarter of 2021. It is expected that the price increase will drive the subsequent profit margin to continue to improve.
The 21st Century Business Herald reporter noted that the net profit attributable to the parent company in Chacha Food Company Limited(002557) 2019 and 2020 increased by 39.44% and 30.73% year-on-year respectively, while the performance in 2021 increased by only 15.52% year-on-year.
It can be seen that the performance growth rate of Chacha Food Company Limited(002557) has decreased significantly in the past two years.
Perhaps this can be seen from its basic sector – the revenue of sunflower products. In 2019, 2020 and the first half of 2021, Chacha Food Company Limited(002557) ‘s sunflower products revenue increased by 17.5%, 12.8% and – 4.3% respectively year-on-year, and the signs of weak growth have been revealed.
On February 23, the 21st Century Business Herald reporter called Chacha Food Company Limited(002557) securities department. A staff member said that he would reply to the interview content in the form of e-mail, but as of the time of publication, he had not received a reply from Chacha Food Company Limited(002557) .
grow or rely on nut products
Through continuous product innovation and strengthening the two core categories of “melon seeds + nuts”, Chacha Food Company Limited(002557) once attracted institutional attention in the capital market.
Compared with the third quarter of last year, the fund increased its positions more in the fourth quarter, such as Agricultural Bank of China Huili emerging consumption, CAITONG value momentum, Fuguo blue chip selection, Penghua quality selection, CAITONG growth optimization and so on.
In the view of the food and beverage industry analysts of the above securities companies, Chacha Food Company Limited(002557) the current strategy is relatively clear, “the melon seed brand is aging, so the company’s advertising is more on nuts, but the competition in the nut industry is more intense and the competitors are stronger.”
According to the data, from 2018 to 2020, Chacha Food Company Limited(002557) nut revenue increased from 502 million yuan to 950 million yuan, with a compound annual growth rate of 37.6%, much higher than the compound growth rate of 12.3% of the company’s revenue in the same period, and the proportion of revenue increased from 11.97% to 17.96%.
In the first half of 2021, Chacha Food Company Limited(002557) had a nut income of 461 million yuan, with a year-on-year growth rate of 50.65%, accounting for 19.37%. The second growth curve of the company gradually became clear.
“At present, the revenue of Chacha Food Company Limited(002557) sunflower seeds is basically stable, that is, about 3.5 billion to 4 billion a year. If the company wants to continue to grow its revenue, it can only rely on nut products.” The food and beverage industry analyst of the above securities company told the 21st Century Business Herald that the Agency conducted a survey on Chacha Food Company Limited(002557) in January this year, “one of the very important concerns is whether there will be a price increase plan for nuts in the future?”
But, The answer to Chacha Food Company Limited(002557) is “At present, the competition among nut categories is still fierce, the market scale of the company’s nuts is not large, and the brand primacy effect of daily nuts is not prominent enough. Although some raw materials of nuts and sea freight have increased, the company will strive to overcome these factors and focus on expanding the scale of daily nuts in the next 2-3 years, hoping to be absolutely the first in the subdivided categories and strengthen the brand strength And channel power will be further considered whether to raise the price. “
For Chacha Food Company Limited(002557) who hopes on nut products, can “daily nut segmentation be absolutely the first in the market” in the next 2-3 years? Perhaps only time can give the answer.
