“Although affected by the epidemic, it is difficult to predict the performance in the second quarter, I still firmly believe that the impact of the epidemic will pass quickly, and the performance of snack food in the second half of the year is promising.” Zhou Jinsong, chairman of Jinzai Food Group Co.Ltd(003000) board, was full of confidence when asked by reporters at the annual general meeting on November 11.
On Monday, the 11th, affected by the international situation and the epidemic situation, A-Shares suffered “open door blackout”, and the Shanghai index fell more than 80 points. As the new generation in the snack food sector, Jinzai Food Group Co.Ltd(003000) fell less than 1%, showing relatively resistance to decline. For the decline of the share price of snack food, Zhou Jinsong admitted that the performance of the share price was affected by the general environment. From the annual report, Jinzai Food Group Co.Ltd(003000) ‘s revenue data is still ideal, but because of the large increase in raw materials and shipping costs, the profit was diluted and did not meet the expected period, which is also one of the reasons for the decline of the share price. Zhou Jinsong said that at present, the Jinzai Food Group Co.Ltd(003000) market is stable, and the performance in the second quarter is difficult to predict. However, he believes that the dynamic clearing of the epidemic will not take too long, and leisure food, as a category of FMCG, is just needed, so the market should improve in the second half of the year.
For major projects, Zhou Jinsong said that the construction of Jinzai Food Group Co.Ltd(003000) base in Africa is rapidly advancing. The base covers an area of thousands of Mu and is rich in marine resources. After completion, it will provide high-quality raw materials for Jinzai Food Group Co.Ltd(003000) stability. In addition, the change of the company’s product retail form from single package to boxed and bagged sales has been recognized by the market, which also helps to improve the company’s performance.
In fact, the expectation of whether the snack food industry can usher in a performance inflection point was eagerly expected by the market as early as the second half of last year, but the volatility of the epidemic has seriously impacted the industry. Nevertheless, in the past year, the performance of Hunan snack food stocks represented by Juewei Food Co.Ltd(603517) , Yanker Shop Food Co.Ltd(002847) and Jinzai Food Group Co.Ltd(003000) in Hunan is still commendable. Among them, Juewei Food Co.Ltd(603517) in the case of stable growth in performance in the first three quarters of last year, launched a large-scale fixed growth plan to expand production capacity and radiate to Guangdong, Guangxi and surrounding areas. While Yanker Shop Food Co.Ltd(002847) and Jinzai Food Group Co.Ltd(003000) experienced revenue growth but profit decline. But the good news is that, on the one hand, the capital situation of the two companies is good, and the cash flow has increased significantly year-on-year; On the other hand, the measures of recruiting talents have achieved good results. The two companies have made great progress in the development of sales channels and the construction of sales outlets. This has laid a good foundation for its subsequent operation and ushering in the performance inflection point.
Many professional institutions are also optimistic about Hunan Leisure food listed companies. For example, Huaxin securities issued a research report saying that Jinzai Food Group Co.Ltd(003000) will usher in a performance inflection point, and Yanker Shop Food Co.Ltd(002847) has also been supported by a number of powerful securities companies after issuing the annual report, giving a rating of “overweight” or “optimistic”.
