On April 29, Beingmate Co.Ltd(002570) handed over a brilliant report card: in 2021, the company successfully turned losses into profits and doubled its net profit; The first quarter report of 2022 achieved double-digit high growth in revenue and net profit.
Under the personal operation of Xie Hong, the founder of the company, Beingmate Co.Ltd(002570) has achieved strong performance for two consecutive quarters. Is the company out of the dilemma and ushering in a new development period?
In this regard, song Liang, a dairy expert, said in an interview with the reporter of Securities Daily that Beingmate Co.Ltd(002570) performance showed restorative growth. On the one hand, the company’s main business performance was good, the market channel was relatively stable, the confidence was sufficient, and the company’s promotion efforts were solid; Secondly, the company’s OEM business is booming. These factors have promoted the growth of Beingmate Co.Ltd(002570) overall performance, and the company has entered the best period of restorative development.
Turn losses into profits in the annual report
Double digit growth in the first quarter of this year
According to the annual report data of 2021 released by Beingmate Co.Ltd(002570) , during the reporting period, the company achieved a revenue of 2.54 billion yuan, a year-on-year decrease of 4.7%; The net profit attributable to the shareholders of the listed company was 733145 million yuan, an increase of 122.61% over the same period last year. The net cash flow from operating activities was 246 million yuan, a year-on-year increase of 713.34%.
It is worth mentioning that the competition in the dairy industry is becoming increasingly fierce under the background of the decline of newborn population and repeated epidemic Beingmate Co.Ltd(002570) in such a big environment, the achievements made by the company’s founder have something to do with his personal trading.
According to the Beingmate Co.Ltd(002570) annual report, from the fourth quarter of 2021, the company’s series of changes and adjustments began to produce results. In the fourth quarter, the company achieved an operating revenue of 881 million yuan, an increase of 91.61% over the same period of the previous year. In the first quarter of this year, the company’s performance continued the development trend in the fourth quarter of last year, and achieved a good start with the report card of double-digit high growth in revenue and net profit.
According to the first quarterly report of Beingmate Co.Ltd(002570) 2022, during the reporting period, the company achieved an operating revenue of 814 million yuan, an increase of 43.68% over the same period last year; The net profit attributable to the shareholders of the listed company was 201264 million yuan, an increase of 38.45% over the same period last year. For two consecutive quarters, it has reached the best level in a single quarter in the company’s history in the same period of nearly four years.
In the view of insiders, Beingmate Co.Ltd(002570) last year’s net profit doubled, indicating that the effect of precision marketing and fine management of the company began to appear. From the performance of the company from the fourth quarter of last year to the first quarter of this year, it also verified the establishment of the company’s dilemma reversal situation.
Cash flow increased by 713.34% year-on-year
The company’s dilemma is reversed and the situation is clear
The amount of cash flow from operating activities is one of the important financial indicators to judge the fundamentals of the company. According to the annual report of Beingmate Co.Ltd(002570) 2021, the net operating cash flow of the company increased significantly during the reporting period, from 303369 million yuan in 2020 to 2467438 million yuan in 2021, with a year-on-year increase of 713.34%, and the net operating cash flow was much higher than the total net profit.
“The successful promotion of the new retail model has enhanced the bargaining power of Beingmate Co.Ltd(002570) to downstream channels and stores. In addition, due to the increasingly clear trend of Beingmate Co.Ltd(002570) reversal, the bargaining power of the company to upstream is also increasing.” A person familiar with Beingmate Co.Ltd(002570) said so.
From the huge loss in 2020 to the good performance in 2021 and the first quarter of this year, what did Beingmate Co.Ltd(002570) do right, so that the company can realize the great reversal of performance under the background of the normalization of epidemic prevention and control and the decline of neonatal birth rate?
In this regard, song Liang gave three reasons. First, Beingmate Co.Ltd(002570) reduced the focus of the brand and the main brand, re established the channel information, maintained the price and gave the channel a good profit distribution; Second, Beingmate Co.Ltd(002570) gave full play to its own production capacity advantages, and China’s children’s milk powder ushered in a development dividend period. The OEM model of Beingmate Co.Ltd(002570) has performed well in the market; Thirdly, Beingmate Co.Ltd(002570) further accelerated the internal control management, strengthened the construction of digital marketing management system, and achieved good results in the internal control management of the company.
It is worth noting that the Political Bureau of the CPC Central Committee held on April 29 once again set the tone for steady growth, defined the annual economic development goals, and emphasized infrastructure, consumption and platform economy as the direction of steady growth. This is undoubtedly a great benefit to the consumer goods industry where Beingmate Co.Ltd(002570) is located, and the prosperity of the industry will be greatly improved.
“The state will boost consumption and boost the performance and development of enterprises such as Beingmate Co.Ltd(002570) .” Song Liang said so.
In the view of insiders, Beingmate Co.Ltd(002570) sales have rebounded to the bottom, with obvious reduction and efficiency increase. Coupled with the continuous improvement of the company’s cash flow, the Beingmate Co.Ltd(002570) dilemma reversal situation is clear and the future can be expected.
