C&S Paper Co.Ltd(002511) performance, known as "A-share paper Mao", has declined. Recently, C&S Paper Co.Ltd(002511) released the performance express for 2021, and the company's net profit fell by more than 30%, which is the first negative growth of C&S Paper Co.Ltd(002511) net profit since 2015 C&S Paper Co.Ltd(002511) attributed the decline in net profit to the rising cost caused by the rising price of raw materials, but this statement is not fully recognized by the industry, "Household paper has always been the core business of C&S Paper Co.Ltd(002511) . In recent years, the business sector has been squeezed by giants such as HengAn international and Vida international, and the market share is significantly lower than that of similar enterprises. For C&S Paper Co.Ltd(002511) whose performance begins to decline and senior management changes frequently, it is urgent to find a new growth point on the basis of maintaining the market share".
six year net profit down for the first time
According to C&S Paper Co.Ltd(002511) performance express, the company's operating revenue in 2021 was 9.194 billion yuan, an increase of 17.52% over the same period last year; The net profit attributable to shareholders of listed companies was 582 million yuan, down 35.8% from the same period last year. This is the first negative increase in net profit of C&S Paper Co.Ltd(002511) since 2015. According to the financial report data, from 2015 to 2020, C&S Paper Co.Ltd(002511) net profit increased by 30.66%, 195.27%, 34.04%, 16.6%, 48.36% and 50.02% respectively.
C&S Paper Co.Ltd(002511) performance has declined since the second quarter of 2021. According to the financial report data, C&S Paper Co.Ltd(002511) net profit in the first quarter of 2021 increased by 47.81% year-on-year, decreased by 10.06% in the first half of 2021 and decreased by 64.72% in the third quarter.
The rise in raw material prices and the increase in costs are the reasons for the decline in performance given by C&S Paper Co.Ltd(002511) the company C&S Paper Co.Ltd(002511) in the announcement, it was mentioned that the price of international raw materials and packaging materials increased, the production cost of the company increased, and the market expense investment increased, resulting in the decline of profits.
As stated in C&S Paper Co.Ltd(002511) announcement, China's pulp price has indeed increased in recent years. Data show that since November 2020, China's pulp price has been rising, once approaching the high point of 7400 yuan / ton. Although there is a correction on the way, the pulp price has remained at about 6300 yuan / ton since July 2021.
However, according to Xu Xiongjun, a strategic positioning expert and founder of Jiude positioning consulting company, the rise of pulp price is a common problem faced by the whole industry, and the decline of C&S Paper Co.Ltd(002511) performance is mainly due to its weak competitiveness under the intensification of market industry competition. "There are not a few enterprises in the household paper industry, and the squeeze of giants such as HengAn international and Vida international makes C&S Paper Co.Ltd(002511) not dominant in the market share, and C&S Paper Co.Ltd(002511) 's performance is bound to be affected." Xu Xiongjun said.
frequent changes in Senior Management
With the decline in performance, C&S Paper Co.Ltd(002511) executives also changed frequently.
According to C&S Paper Co.Ltd(002511) announcement information, in March 2021, Deng Guanbiao, President of the company, applied for resignation as president, and still served as vice chairman of the Fifth Board of directors and member of the strategy committee of the company after resignation; On April 13, C&S Paper Co.Ltd(002511) announced that based on the consideration of future strategic development planning, chairman Deng Yingzhong applied to resign as chairman of the board and still serve as director and chairman of the Strategy Committee; On April 29, the co presidents applied for resignation and no longer held C&S Paper Co.Ltd(002511) any post after resignation; In July 2021, supervisor Li Youquan resigned, and then his board secretary and vice president Zhou Qichao resigned; On October 27, ye Longfang, vice president, resigned and no longer held any post of C&S Paper Co.Ltd(002511) any post after resignation.
C&S Paper Co.Ltd(002511) senior executives resigned one after another, which also attracted the attention of the Shenzhen Stock Exchange and asked it to explain whether the changes of several directors, supervisors and senior executives have had an adverse impact on the company's production, operation and internal management since 2021. Subsequently, C&S Paper Co.Ltd(002511) said in the reply that it would not have a significant impact on its production and operation.
Although C&S Paper Co.Ltd(002511) said in the reply that the changes of several executives would not have a significant impact on the operation, there were still some fluctuations at the market level. In May 2021, after Deng Yingzhong, the company's director and actual controller, issued the "bottom-up shareholding increase proposal", the C&S Paper Co.Ltd(002511) share price once climbed to the highest 35.22 yuan / share, and then fell all the way, falling the limit for many times during the period. As of press time, C&S Paper Co.Ltd(002511) share price fell to 14.18 yuan / share, down 59.74% from last year's high.
The reporter of Beijing business daily interviewed C&S Paper Co.Ltd(002511) about the decline of employment performance and the change of management. As of the press time, no reply has been received.
giant extrusion
With the decline of performance and the turbulence of Management... C&S Paper Co.Ltd(002511) the follow-up development has also been marked with a question mark.
As China's first A-share listed household paper enterprise, C&S Paper Co.Ltd(002511) since its listing in 2010, its performance and share price have been rising continuously, and its performance scale has increased from more than 1 billion yuan before listing to 9.2 billion yuan today. With such growth, C&S Paper Co.Ltd(002511) has been dubbed "A-share paper Mao", which is similar to HengAn international Vida international is known as the big three of paper towels.
C&S Paper Co.Ltd(002511) at present, its businesses include household paper and personal care, and its brands include jierou, Taiyang, duoleimi, etc. Household paper is C&S Paper Co.Ltd(002511) the largest business segment, accounting for more than 95% of revenue. According to the data of 2021 semi annual report, C&S Paper Co.Ltd(002511) household paper accounted for 96.12% of the revenue, and its personal care business accounted for 0.95%.
Today, C&S Paper Co.Ltd(002511) highly dependent household paper business is facing the squeeze of giants. Euromonitor data show that in 2020, HengAn international accounted for 10.2%, Vader international accounted for 9.3%, and C&S Paper Co.Ltd(002511) and jinhongye accounted for 6% and 5.7% respectively.
C&S Paper Co.Ltd(002511) has tried to expand business areas and look for new growth points. In 2018, C&S Paper Co.Ltd(002511) launched the "new cotton early white" series to enter the beauty, mother and baby market. In 2019, "duoleimi" was launched to enter the female nursing market and promote the multi brand strategy. However, judging from the current sales volume, it is difficult to become a business supporting the development of the company.
As a brand of C&S Paper Co.Ltd(002511) cutting into beauty and mother and baby track, Xinmian chubai has only launched two tissue products, with a sales volume of about double digits. Women's care brand duoleimi is also in the lower position. During the "double 11" period in 2021, the top ten brands of women's nursing sanitary napkins were hushubao, Sophie, Gauss, le'erya, seven dimensional space, all cotton era, ABC, free point, Jieting and libresse, and duoleimi was not on the list. In terms of sales volume, the number of products with the highest sales volume in the flagship store of libresse under Vida is 20000 +, and the number of products with the highest sales volume in the flagship store of HengAn International seven dimensional space is 10000 +. The number of products with the highest sales volume in doraimi flagship store is 200 +.
"Now C&S Paper Co.Ltd(002511) faces great competitive pressure. HengAn international and Vida international not only create competitive pressure on it in the field of household paper, but also have made layout in the fields of sanitary napkins and diapers. Therefore, it is extremely urgent to maintain the market share of core household paper under heavy pressure." Wu Daiqi, CEO of Shenzhen siqisheng company, said.
