On April 28, “the first share of quick frozen supply chain” Zhengzhou Qianweiyangchu Food Co.Ltd(001215) ( Zhengzhou Qianweiyangchu Food Co.Ltd(001215) . SZ) disclosed the annual report of 2021 and the first quarterly report of 2022. In 2021, the company achieved an operating revenue of 1.274 billion yuan, a year-on-year increase of 34.89%; The net profit attributable to the parent company was 884641 million yuan, a year-on-year increase of 15.51%; The net profit deducted from non profit was 855553 million yuan, a year-on-year increase of 47.14%. The company’s revenue and net profit increased significantly, giving investors a brilliant answer.
In the first quarter of 2022, the company made a good start again and its performance exceeded expectations. In the first quarter, the company realized an operating revenue of 348 million yuan, a year-on-year increase of 20.17%; The net profit attributable to the parent company was 28.709 million yuan, a year-on-year increase of 44.78%; Deduct non net profit of RMB 238423 million, with a year-on-year increase of 24.16%.
Sinolink Securities Co.Ltd(600109) research report pointed out that under the disturbance of the epidemic situation, Zhengzhou Qianweiyangchu Food Co.Ltd(001215) 2022 still achieved an increase of 20.17% in the first quarter, highlighting the company’s ability, and the contract liabilities increased by 34% at the same time. The downstream demand is still strong, and it is expected to accelerate the release in the second quarter.
four advantageous products continue to be sold in large quantities, and the performance of prefabricated vegetables is expected to increase
Zhengzhou Qianweiyangchu Food Co.Ltd(001215) has been deeply cultivating the fast-frozen noodle rice catering market for nearly 20 years. Adhering to the strategic positioning of “only for catering and chefs”, it is committed to providing comprehensive supply solutions for catering, hotels and group canteens. In 2021, it became the first listed catering supply chain enterprise, known as “the first share of quick-frozen supply chain”.
During the reporting period, the four dominant categories of the company developed rapidly and maintained a high growth trend. In terms of products, the revenue of frying in 2021 was 660 million yuan, a year-on-year increase of 26.66%; Baking achieved a revenue of 223 million yuan, a year-on-year increase of 19.10%; Cooking achieved a revenue of 256 million yuan, a year-on-year increase of 39.20%; Dishes and others achieved a revenue of 130 million yuan, a year-on-year increase of 162.11%.
In terms of profitability, in 2021, the gross profit margins of the company’s frying, baking, cooking, dishes and others were 20.72%, 24.95%, 23.45% and 21.59% respectively. While the company’s performance is advancing by leaps and bounds, it continues to maintain good profitability.
Zhengzhou Qianweiyangchu Food Co.Ltd(001215) started with fried products, accounting for more than 50% of the market in sub categories such as sesame balls and fried dough sticks. At the same time, around scenes such as group meals and rural banquets, it created new growth points of fried sweet potato balls, crispy bananas and so on. During the reporting period, as the star products of the company, the overall growth rate of the product line was 34.65%, with a strong growth trend. In addition to a single core major customer, the growth rate of fried dough sticks product line was 43.88%, and its leading position was stable.
In addition to the above fried single products, the company increased the R & D and promotion of steamed and fried dumplings in 2021, focusing on the layout of group meals and rural banquets. In the future, it is also expected to cut and develop around fried dough sticks in the breakfast market. During the reporting period, the company’s steamed and fried dumpling product line as a whole achieved a significant increase of 167.87%.
While developing the main market, the company also seizes the opportunity of emerging tracks. During the reporting period, the company strengthened the market of prefabricated dishes and accurately developed new varieties of prefabricated dishes based on the needs of catering chain enterprises. As an important development direction determined by the company’s strategy in 2021, prefabricated vegetable products also attracted market attention in 2021 and ushered in a bumper harvest during the reporting period. In 2021, the sales volume of the company’s Prefabricated vegetables was more than 14 million, with a year-on-year increase of 34.35%.
Under the catalysis of “home economy” and policy encouragement, the prefabricated vegetable industry continues to receive attention. According to AI media consulting data, from 2019 to 2021, the market scale of Chinese prefabricated dishes increased from 244.5 billion yuan to 345.9 billion yuan, with an average annual compound growth rate of 18.94%. It is expected that by 2026, the market scale of Chinese prefabricated dishes will exceed trillion yuan to 1.07 trillion yuan.
In the face of the huge market of prefabricated vegetables, Zhengzhou Qianweiyangchu Food Co.Ltd(001215) said that the R & D, production and sales of prefabricated vegetables will be strengthened in 2022. The company plans to establish a professional prefabricated vegetable company to carry out relevant business and open a new growth pole of performance.
Different from the “single family consumption scenario”, the catering industry has a wide range of formats and forms, which also produces diversified needs under different consumption scenarios, and the catering industry has high requirements for the speed of pushing through the old and bringing forth the new. With in-depth understanding of catering consumption demand, Zhengzhou Qianweiyangchu Food Co.Ltd(001215) continues to strengthen R & D and technology to improve product competitiveness. In 2021, the company invested 8.9895 million yuan in R & D expenses, with a year-on-year increase of 24.79%, and completed the launch of a number of new products one after another.
Key products and innovative products go hand in hand, and the category layout is more diversified, which makes Zhengzhou Qianweiyangchu Food Co.Ltd(001215) the product structure continue to be optimized, providing strong support for the company’s future performance growth.
direct selling deeply binds high-quality customers, and distribution helps accelerate national development
According to the data released by China chain operation association, the market scale of China’s catering industry will be 4.7 trillion in 2021, and it is expected to reach 6.6 trillion in 2024. With the rapid growth of the catering market, the chain degree of catering brands has increased, and the chain rate has increased year by year. According to the data disclosed by meituan, the chain rate of Chinese catering from 2018 to 2020 was 12.8%, 13.3% and 15.0% respectively, and the chain rate of the industry increased year by year. From the distribution of different store sizes of chain brands, the proportion of catering chain stores with a scale of more than 10000 stores increased from 0.7% in 2018 to 1.4% in 2020.
Zhengzhou Qianweiyangchu Food Co.Ltd(001215) since its establishment, it has continued to cultivate the catering market and has become a supplier of quick-frozen noodles and rice products of famous catering brands such as KFC, pizza hut, Wallace, Haidilao and zhenkung Fu. Among them, the supplier system in Yum China is the highest T1 level, leading other competitors in the industry.
With the continuous improvement of the binding and utilization rate of large catering chains in China, it is expected that catering chains will continue to benefit from the strong binding of catering chains in China.
From the perspective of direct marketing channels, Haidilao, Wallace and other major customers have maintained a relatively high-speed growth, and the company continues to expand major B customers in the new field of catering, bringing increment to the company’s business development. In 2021, the direct marketing sales volume of the company was 510 million yuan, with a year-on-year increase of 51.62%.
During the reporting period, the company strengthened the development of key customers. In addition to considering the sales scale and the number of stores of customers, the company also included some catering enterprises with high growth and great potential for future development into the key customer management system. Therefore, the number of key customers of the company increased on a large scale in 2021. By the end of December 2021, the number of major customers of the company was 168, an increase of 93.10% compared with 87 at the end of 2020.
In addition to deep cultivation of direct major customers, the company has strengthened dealer cooperation to reach downstream small and medium-sized customers. The company faces small and medium-sized B catering customers through distribution channels, with large quantity, wide distribution, high timeliness and stability requirements. Under the distribution mode, the company constructs a multi-level distribution system. On the one hand, it can use the dealer warehouse as a transit warehouse to realize stable and efficient food material distribution. On the other hand, it can rely on the local sales channels of dealers to realize national expansion.
During the reporting period, the company strengthened the construction of dealers, and the number of dealers increased from 61 to 968. The company empowers dealers through various ways. It is obvious that the sales and marketing personnel of the company have expanded from 67 in 2017 to 213 in 2021, striving to help dealers deepen and sink channels in an all-round way.
It is worth noting that the effect of the company’s increased support for core dealers initially appeared. In 2021, the sales of the top 20 dealers accounted for 206 million, with a year-on-year increase of 50.14%, much higher than the overall growth rate of distribution channels.
With Zhengzhou Qianweiyangchu Food Co.Ltd(001215) increasing the development of dealers, the number and quality of dealers will be greatly improved, and the company’s distribution channel revenue will maintain a high growth rate. In 2021, the sales volume of the company’s distribution channels was 760 million yuan, a year-on-year increase of 25.35%.
According to Euromonitor data, in 2021, the sales volume of quick-frozen rice noodle catering channels accounted for about 16%, the sales volume CAGR in recent five years reached 15%, the sales volume of retail channels accounted for 84%, and the CAGR in recent five years was 4.2%. The growth rate of catering channels was high, and the proportion continued to increase. Compared with the retail channel, quick-frozen rice flour products started late in the catering channel and are still in the stage of product development and market development. With the increasing demand of catering enterprises for pre products, the catering channel has become a new blue ocean.
Zhengzhou Qianweiyangchu Food Co.Ltd(001215) as the leading restaurant of quick-frozen noodles and rice products, channel barriers have been formed through long-term cooperation with customers. With the sustainable development of social economy, the catering scale will still grow steadily. The chain of catering and the standardization of takeout will make the catering channel of quick-frozen noodles and rice products continue to benefit. On the one hand, through continuous research and development, the company is expected to maintain a high growth rate by pushing through the old and bringing forth the new, Zhengzhou Qianweiyangchu Food Co.Ltd(001215) steaming and frying dumplings, baking new products, and frying. On the other hand, the company is expected to take advantage of the wind and build a new growth pole.
