Foshan Haitian Flavouring And Food Company Ltd(603288) has been “threatening” since 2022. On January 12, 2022, Tianyan survey showed that Foshan Haitian Flavouring And Food Company Ltd(603288) (hereinafter referred to as ” Foshan Haitian Flavouring And Food Company Ltd(603288) “) invested in a new brewing food company.
Prior to this, on December 31, 2021, Foshan Haitian Flavouring And Food Company Ltd(603288) also announced that it had invested in Zhejiang Jiusheng Camellia Oil Technology Co., Ltd. through a wholly-owned subsidiary. From this point of view, at the beginning of the new year, Foshan Haitian Flavouring And Food Company Ltd(603288) successively invested in two companies. In the context of the overall decline in share prices over the past year, Foshan Haitian Flavouring And Food Company Ltd(603288) one after another investment actions are thought-provoking.
last year, there were new investments every month on average
As the leader of condiment, Foshan Haitian Flavouring And Food Company Ltd(603288) has always been relatively low-key in the industry. But in the past 2021, Foshan Haitian Flavouring And Food Company Ltd(603288) has been moving constantly.
According to the reporter’s statistics, since 2021, Foshan Haitian Flavouring And Food Company Ltd(603288) has invested 12 subsidiaries abroad, including soy sauce, oil consuming brewing, food technology, management services, supply chain, park management, etc. In 2020, the number was 5. At present, Haitian Group has 110 enterprises. In addition to investing in the establishment of subsidiaries, last March, Foshan Haitian Flavouring And Food Company Ltd(603288) also participated in the c-round financing of daily black Qiao.
This means that in the past year, Foshan Haitian Flavouring And Food Company Ltd(603288) invested in a subsidiary every month on average. Just recently, Foshan Haitian Flavouring And Food Company Ltd(603288) announced that according to the needs of business development, it plans to invest 50 million yuan to establish a wholly-owned subsidiary Haitian Brewing Food Co., Ltd. in Guangzhou, Guangdong. The announcement shows that the business scope of the brewing company is food production, condiment production, food inspection and testing, food sales, food Internet sales, etc.
In addition, the announcement also shows that Foshan Haitian Flavouring And Food Company Ltd(603288) acquires part of the existing shareholders\’ equity of Zhejiang Jiusheng Oil Tea Technology Co., Ltd. (hereinafter referred to as “Jiusheng oil tea”) through its wholly-owned subsidiary daidaidaidaitian (Wuhan) Food Group Co., Ltd. (hereinafter referred to as “daidaidaitian food”), and then unilaterally increases the capital of Jiusheng oil tea. After the transfer and capital increase, Daidaitian food will hold 67% equity of Jiusheng Camellia branch, and the capital increase transaction amount is 575 million yuan.
It is understood that Jiusheng Camellia oleifera is a famous enterprise in China’s tea oil industry. Founded in 2006, Jiusheng Camellia oleifera is engaged in the operation of high-end edible vegetable oil and Camellia oleifera derivatives. It is a large Camellia oleifera enterprise in Zhejiang Province. From 2019 to the middle of 2021, Jiusheng oil tea’s revenue was 199 million yuan, 185 million yuan and 91.24 million yuan respectively.
It is worth noting that this is not Foshan Haitian Flavouring And Food Company Ltd(603288) the first time to acquire oil enterprises. At the beginning of 2020, Foshan Haitian Flavouring And Food Company Ltd(603288) acquired Hefei Yanzhuang Edible Oil Co., Ltd. at the price of RMB 169 million. After the acquisition of Jiusheng oil tea, Foshan Haitian Flavouring And Food Company Ltd(603288) will further expand its territory in the field of grain and oil. It should be mentioned that the “inter-bank” of Foshan Haitian Flavouring And Food Company Ltd(603288) is not limited to the field of edible oil. Last May, Foshan Haitian Flavouring And Food Company Ltd(603288) launched the “geographical imprint” series of rice and officially entered the rice market.
Frequent foreign investment and entering the grain and oil market make the outside world guess whether Foshan Haitian Flavouring And Food Company Ltd(603288) is looking for new performance growth points other than soy sauce and oyster sauce. After all, under the dual influence of epidemic situation and cost, Foshan Haitian Flavouring And Food Company Ltd(603288) its own performance is under serious pressure. Although the price of some products has been raised last year, the help of price increase on performance may be difficult to reflect in the short term.
For Foshan Haitian Flavouring And Food Company Ltd(603288) to enter the grain and oil market, Shen Meng, executive director of Xiangsong capital, analyzed the reporter of Huaxia times and believed that: “There are still obvious operational differences between the grain and oil market and the condiment market. Therefore, for Haitian, if it enters the traditional grain and oil industry on a large scale, on the one hand, it may not be acclimatized, and on the other hand, it also faces competition from competitors with strong scale and strength. However, Haitian’s advantage lies in its high popularity of its core brand, which can continuously overflow to the grain and oil industry through brand output. ”
Interestingly, while Foshan Haitian Flavouring And Food Company Ltd(603288) launched the grain and oil track, the head player Yihai Kerry Arawana Holdings Co.Ltd(300999) of the grain and oil track is also marching into the condiment track. The same as Foshan Haitian Flavouring And Food Company Ltd(603288) , Yihai Kerry Arawana Holdings Co.Ltd(300999) “inter-bank” also adopts the acquisition mode. In 2019, Yihai Kerry Arawana Holdings Co.Ltd(300999) acquired Shanxi Liangfen vinegar industry. As the undisputed “boss” of the grain and oil track, Yihai Kerry Arawana Holdings Co.Ltd(300999) has a very high market share in the field of grain and oil. In this case, the “grain and oil trip” of Foshan Haitian Flavouring And Food Company Ltd(603288) is full of expectations.
“Three Five Year Plan” performance test
Affected by the epidemic, enterprises not only look for new performance growth points, but also make efforts in channels.
In 2019 Foshan Haitian Flavouring And Food Company Ltd(603288) put forward the third five-year plan, which said that in order to complete the third five-year plan with high quality, Foshan Haitian Flavouring And Food Company Ltd(603288) should make essential changes in business model, management level, scientific and technological progress, talent level, etc. At the same time Foshan Haitian Flavouring And Food Company Ltd(603288) also mentioned the need to focus on the development of the main business and continue to expand the leading edge in the condiment industry; While making great strides in reform, we will accelerate the transformation of enterprise management and grasp the development opportunities of the new era.
2021 is the third year of Foshan Haitian Flavouring And Food Company Ltd(603288) the third five year plan. In the annual report of 2021, Foshan Haitian Flavouring And Food Company Ltd(603288) said: “in 2021, the company plans to have a total operating revenue target of 26.44 billion yuan and a profit target of 7.56 billion yuan.” However, according to the data currently disclosed, in the first three quarters of 2021, Foshan Haitian Flavouring And Food Company Ltd(603288) achieved revenue of 17.994 billion yuan, a year-on-year increase of 5.3%; The net profit attributable to the parent company was 4.708 billion yuan, an increase of 2.98%. This report card has also become the worst growth rate of Foshan Haitian Flavouring And Food Company Ltd(603288) three quarterly reports since its listing.
In the secondary market, “soy sauce Mao” was also badly hit. As of the closing on January 14, Foshan Haitian Flavouring And Food Company Ltd(603288) was reported at 102.92 yuan / share, down 2.45% from the previous day. The share price has fallen by more than 30% in the past year, and the total market value is currently 433.558 billion yuan.
The reason why Foshan Haitian Flavouring And Food Company Ltd(603288) is firmly at the head depends largely on its intensive offline distribution network. By the first half of 2021, Foshan Haitian Flavouring And Food Company Ltd(603288) has a sales network covering 31 provinces, more than 300 prefecture level cities and more than 2000 county markets. However, affected by the epidemic, consumers’ consumption in offline restaurants has decreased, Foshan Haitian Flavouring And Food Company Ltd(603288) is also difficult to avoid the impact.
In the past two years, Internet consumption has developed rapidly under the epidemic, and many enterprises choose to take the opportunity to develop online. Although Foshan Haitian Flavouring And Food Company Ltd(603288) has repeatedly said in the financial report that it is necessary to speed up the construction of e-commerce platform. But at present, the effect is not very obvious.
According to the data, the revenue of Foshan Haitian Flavouring And Food Company Ltd(603288) online channels in 2020 was 380 million yuan, down from the same period last year, accounting for only 1.76% of the operating revenue. In the first half of 2021, Foshan Haitian Flavouring And Food Company Ltd(603288) online revenue increased by 17.47% year-on-year to RMB 250 million, accounting for 2.14% of revenue.
Although there are huge offline distribution channels, with online shopping gradually becoming the general trend, will the slow penetration of online channels affect the performance growth of Foshan Haitian Flavouring And Food Company Ltd(603288) , Shen Meng told our reporter: “compared with the online market, although condiments still occupy a larger share offline, online is a good supplement for condiment enterprises including Foshan Haitian Flavouring And Food Company Ltd(603288) .” He also believes that if online e-commerce is used as the main channel, its growth space will be limited.
For the future development direction and online channel planning of Foshan Haitian Flavouring And Food Company Ltd(603288) , the reporter of Huaxia times contacted Foshan Haitian Flavouring And Food Company Ltd(603288) by email. As of press time, no reply has been received.
