The food and beverage industry continues to rise. On the evening of January 4, the first share of cream Shanghai Hi-Road Food Technology Co.Ltd(300915) (300915) and milk tea faucet Xiangpiaopiao Food Co.Ltd(603711) (603711) both officially announced price increases, mainly due to the continuous rise of raw materials and other costs. Among them, Shanghai Hi-Road Food Technology Co.Ltd(300915) products increased by 5% to 8%, while Xiangpiaopiao Food Co.Ltd(603711) raised the price of solid brewing milk tea products by 2% to 8%.
It is worth noting that since last year, price increase letters have been issued in many fields, such as condiments, beverages, snack foods, processed foods and even daily necessities, and the trend of price increase of raw materials continues.
the price of cream and milk tea increased
The Shanghai Hi-Road Food Technology Co.Ltd(300915) that landed in the capital market in December 2020 is known as the “first share of cream”. The company takes cream as the main track, expands its product matrix, jam and chocolate, and starts to freeze west point.
It was announced at Shanghai Hi-Road Food Technology Co.Ltd(300915) on the evening of January 4 that in view of the continuous rise in the cost of main raw and auxiliary materials, in order to better provide consumers with high-quality products and services and promote the sustainable development of the market, the company decided to adjust the ex factory prices of some products by 5% to 8%, and the new prices began to be implemented on March 1.
Shanghai Hi-Road Food Technology Co.Ltd(300915) said that the price adjustment of some products may have a certain impact on market sales, and the impact on the company’s future performance is uncertain.
In terms of performance, Shanghai Hi-Road Food Technology Co.Ltd(300915) achieved a main revenue of 545 million yuan in the first three quarters of last year, a year-on-year increase of 44.99%; The net profit was 93.5342 million yuan, a year-on-year increase of 93.67%; Among them, the operating revenue in the third quarter was about 195 million yuan, a year-on-year increase of 31.87%. The net profit was about 41.8 million yuan, a year-on-year increase of 103.33%.
Subject to the general performance of the food and beverage sector since last year, the stock price of Shanghai Hi-Road Food Technology Co.Ltd(300915) in 2021 did not increase significantly. Last year, the stock price increased by 7.83%, and the latest market value is RMB 5.163 billion.
On the same day, the price of milk tea faucet Xiangpiaopiao Food Co.Ltd(603711) was announced. On the evening of January 4, Xiangpiaopiao Food Co.Ltd(603711) announced that in view of the continuous rise in the costs of main raw materials, labor, transportation and energy, in order to better provide high-quality products and services to dealers and consumers and promote the sustainable development of the market and industry, the company decided to adjust the price of the company’s solid brewing milk tea (including classic series and good material series), The price increases of main products range from 2% to 8%, and the new prices will be implemented according to the price adjustment notice of each product from February 1.
Xiangpiaopiao Food Co.Ltd(603711) said that the price adjustment of some products may have a certain impact on the market share of the company’s products. Coupled with the rising cost factors, the price adjustment of the products does not necessarily increase the company’s profits, and the impact of the price adjustment on the company’s future performance is uncertain. Under the influence of the food industry and performance, the share price of Xiangpiaopiao Food Co.Ltd(603711) performed poorly last year, down 19.27% for the whole year. At present, the latest market value is 6.961 billion yuan.
Xiangpiaopiao Food Co.Ltd(603711) in the first three quarters of last year, the company achieved a revenue of 1.974 billion yuan, a year-on-year increase of 4.29%; The net profit was 39.3955 million yuan, a year-on-year decrease of 11.45%; In the third quarter, the revenue and net profit increased month on month, of which the revenue increased by 123%.
food industry prices continued to rise
The Shanghai Hi-Road Food Technology Co.Ltd(300915) that started the price increase is only one of many food and beverage enterprises that have recently increased their prices. Since last year, listed companies in many fields such as condiments, beverages, snack foods, processed foods and even daily necessities have issued price increase letters, including Jiangsu Hengshun Vinegar-Industry Co.Ltd(600305) , Qianhe Condiment And Food Co.Ltd(603027) , Fu Jian Anjoy Foods Co.Ltd(603345) , Jonjee Hi-Tech Industrial And Commercial Holding Co.Ltd(600872) , C&S Paper Co.Ltd(002511) , Angel Yeast Co.Ltd(600298) , Chacha Food Company Limited(002557) and a large number of big and small leaders in various subdivided industries have joined the ranks of price increase, which is obviously a prairie fire.
According to rough statistics, most of the reasons for the recent price increase announced by food enterprises are caused by the continuous rise in the costs of various raw materials, labor, energy and transportation. In other words, the cost rise is too high to erode profits and have to rise.
It is worth noting that with the rise of raw material prices, Shanghai Hi-Road Food Technology Co.Ltd(300915) is also facing price pressure. In last year’s semi annual report, Shanghai Hi-Road Food Technology Co.Ltd(300915) pointed out that the main raw materials of the company’s products are oil, glucose and sugar, which are vulnerable to commodity price fluctuations. During the reporting period, the cost of main raw materials accounted for a high proportion of the cost of main business, and the purchase price of main raw materials had a great impact on the production cost of the company. If the price of main raw materials fluctuates greatly in the future and the company does not take effective measures to control costs, it will have an impact on the profitability of the company.
Xiangpiaopiao Food Co.Ltd(603711) also pays attention to cost risk. In last year’s semi annual report, Xiangpiaopiao Food Co.Ltd(603711) pointed out that the main raw materials for brewing milk tea include skimmed milk powder and vegetable fat powder, sugar, tea powder, red bean and coconut, and the packaging materials mainly include milk tea cup, cup cover, straw, packaging box and gift box. The cost of these raw materials accounts for a large proportion of the production cost. Although the company’s leading market share in the industry and the company’s centralized procurement mode can ensure the company’s bargaining power in the procurement link, if the supply and demand of main raw materials change greatly or the price fluctuates abnormally recently, it will have a certain impact on the company’s operation. Therefore, the company has the risk of price fluctuation of main raw materials.
To maintain steady growth in performance, price increases seem inevitable. Zheshang Securities Co.Ltd(601878) pointed out that the baking business where Shanghai Hi-Road Food Technology Co.Ltd(300915) is located has brought greater pressure on the cost side due to the rising price of raw materials; Power rationing and some target capacity constraints affect the performance level. After the epidemic, the demand of the baking industry recovered rapidly, and benefited from the emergence of new channels such as tea and catering, and the scale of the industry increased rapidly; At the same time, benefiting from the rapid development of food industrialization and the rapid development of new tracks such as freezing and baking, downstream brands pay more and more attention to suppliers who can provide stable “quantity” and excellent “quality”, and high-quality enterprises are expected to continuously improve the market share.
Dongxing Securities Corporation Limited(601198) pointed out that from the third quarterly report of 2021, the gross profit margin of dairy products, condiments and snack foods generally declined month on month due to the rise of upstream costs; The gross profit margin of meat products has recovered, mainly due to the downward cost caused by the downward price of pork; The overall gross profit margin of Baijiu is stable. Affected by the rise of upstream raw materials, some mainstream food enterprises have recently adjusted the prices of commodities. In 2022, the rise of upstream raw material prices will be further transmitted to the downstream. More enterprises have price expectations. Enterprises with the ability to transmit prices to the downstream will benefit more and pay attention to the price increase market.
(E company)
