Source: World Wide Web
A few days ago, many places across the country issued the "spring during the Spring Festival non-essential do not return to the hometown", "local New Year" initiative, spawned a new way of Chinese New Year's Eve meal consumption, online Chinese New Year's Eve rice is becoming more and more popular, more and more people choose to Chinese New Year's Eve meal set or semi-finished pre-made dishes, the development of online retail development of catering is accelerating the formation, is expected to become a new hot spot in catering consumption, a new growth point.
This marks that in the future, domestic semi-finished dishes (prefabricated dishes) are nurturing a large market, accelerating development, and also ushering in the favor of capital. A recent landmark event is the successful IPO of suzhou Weizhixiang Food Co., Ltd., an industry leader, on December 10 last year and plans to land on the main board of the Shanghai Stock Exchange.
According to the prospectus, Weizhixiang intends to issue no more than 25 million shares, raising 654 million yuan, and will invest in "an annual output of 5,000 tons of fermented mushroom liquid for food and an annual output of 50,000 tons of fermented conditioned food project", "R&D inspection center and information construction project", "marketing network and training center construction project" and "supplementary working capital". The main purposes of the funds raised by Weizhixiang are as follows:
The funds raised this time will help meet the needs of the expansion of Weizhixiang's production capacity, achieve sustained business growth, enhance the company's new product research and development capabilities, improve production processes and product quality, optimize offline marketing layout, expand market leadership, enhance the company's core competitiveness in the semi-finished vegetable (prepared dish) industry, and promote the company's strategic goal of becoming the core supplier of the international leading semi-finished dish (pre-made dish) enterprise.
Semi-finished vegetable head enterprise, outstanding competitiveness, strong development momentum
Since its inception in 2008, Weizhixiang has been committed to combining Chinese catering culture with modern machinery and equipment to create prepared dish products with good taste, reliable quality and convenient dining, providing consumers with healthy, green, convenient and delicious semi-finished dishes. The company's products have won the recognition of consumers with good dish taste, reliable product quality and convenient dining experience. After 12 years of deep cultivation and continuous development and accumulation, the company has become one of the industry's leading semi-finished vegetable production enterprises, and established a product system with the two brands of "Weizhixiang" and "Yuyu" as the core, the company's products include beef, aquatic products, poultry, pork, small stir-fry five categories of product lines, covering hundreds of dishes, effectively meet the eating habits and taste preferences of consumers in all regions of the country. The company has now opened a "Weizhixiang Food" WeChat public account, "Weizhixiang - Food" WeChat video account, and opened a Tmall flagship store on December 22, 2020 to carry out online business, and has now listed more than 40 products.
At present, the sales revenue of the main business of Weizhixiang is as follows:
In recent years, with the upgrading of consumption and the acceleration of the pace of life, under the promotion of multiple factors such as takeaway and cold chain transportation, the demand for semi-finished dishes (prepared dishes) in the catering industry has been growing, and recently, affected by the epidemic, the pattern of the catering industry has undergone major changes, and semi-finished dishes have become a new choice for catering enterprises and consumers, promoting the sustained and stable development of semi-finished dishes (prepared dishes) industry enterprises.
With large-scale production advantages, rich product categories, strict quality control and strong research and development capabilities, Weizhixiang has strong revenue and profitability in the past three years, showing a steady and sustainable development upward trend. From 2017 to 2019, the company's operating income was 358.7868 million yuan, 465.9510 million yuan and 542.4245 million yuan, respectively, the operating income in 2018 increased by 29.87% year-on-year, 16.41% in 2019, and the net profit was 51.8045 million yuan, 71.1249 million yuan and 86.2433 million yuan, respectively, and the net profit in 2018 increased by 37% year-on-year, and the year-on-year increase was 21% in 2019. All maintained rapid and stable growth. As shown in the following figure:
In general, in recent years, the gross profit margin of Weizhixiang has remained benign and stable, maintaining at about 25%; at the same time, the net profit margin has increased year by year, 14.44%, 15.26% and 15.90% respectively. At present, the overall operating condition of Weizhixiang is good, the enterprise is resistant to pressure and has strong endurance, the overall asset quality is developing well, and the future development prospects are still sustainable and promising.
Weizhixiang has been awarded the honorary titles of "2016 Jiangsu Provincial Food Industry Excellent Brand Enterprise", "Famous Food in the Yangtze River Delta Region", "2014-2017 Jiangsu Famous Trademark", "Shanghai Edible Agricultural Products 'Golden Basket' Brand", "Suzhou Well-known Trademark (2014-2017)", "Suzhou Quality Award", "Suzhou Quality Management Gold Award (2017)", "China Chain New Talent Award" and other honorary titles, and is the vice president unit of China Meat Association. In 2017, the company was awarded the title of "National Staple Food Processing Industry Demonstration Enterprise" by the Ministry of Agriculture.
The market prospect is good, providing broad development space for Weizhixiang
Prepared dishes originated in the United States in the 1960s and gradually emerged in Japan, Canada and parts of Europe. Due to the changes in consumption habits brought about by the acceleration of the pace of life, more and more consumers around the world choose time-saving and trouble-saving heated ready-to-enjoy meals.
According to Euromonitor's forecast, the Ready Meals market in developed countries is quite mature, and the outbreak of demand under the epidemic has accelerated the expansion of the market, with the market size of the United States and Japan reaching $45.4 billion (+14.9%, 2010-2020 CAGR is 3.9%), 23.85 billion US dollars (+5.6%, 2010-2020 CAGR is 3.3%) in 2020.
From the perspective of competition pattern, the MARKET SHARE OF CR3 in the US market in 2020 reached 29.9%, and the head food companies such as Nestlé (13.7%), Kraft Heinz (9.7%), and Conigerra (6.5%) occupied a large market share. With the rapid economic take-off after World War II, the fast-paced life and the access of American fast-food culture, the Japanese market has also evolved its unique food market ecology. In 2020, 7-11, FamilyMart and Lawson will occupy 6.7%, 4.6% and 4.1% of the market share of the Japanese prefabricated meal market respectively, and the convenience store catering that is heated and ready to eat has become one of the main dining methods for Japanese white-collar workers and students.
China's semi-finished vegetable industry entry threshold is relatively low, there are many enterprises in the industry, the degree of marketization of the industry is high, and the competition is sufficient, but most of them still stay in the workshop-style production and processing mode, the degree of market concentration is low, the regional characteristics are obvious, there are fewer enterprises that reach the production level above the scale, and they have not yet formed a national operation enterprise. The market share of various enterprises in the industry is limited, and the more well-known large-scale production enterprises include Weizhixiang, Xinya Food, Haodexi, Fucheng Shares and Lujin Food.
The scale of China's pre-made meal market is in a stage of rapid development, and in recent years, under the background of national home isolation and this year's local New Year, the demand for pre-made meals has continued to accelerate its development. According to Euromonitor, the size of China's prepared meal market will reach 46.3 billion yuan (+7.6%, CAGR 5.3% in 15-20 years) in 2020, and the consumption volume will be 1.83 million tons (+3.3%). The main products of China's prefabricated meal market are still mainly packed points and dumplings, and the proportion of semi-finished dishes in the future is expected to benefit from the acceleration of C-end supply of post-epidemic prefabricated meal enterprises and continue to improve. Under the background of economic development and consumption upgrading, the structure of social life has undergone subtle changes, and the terminal demand for prepared dishes driven by fast-paced life will continue to grow. Enterprises with both product strength and channel power will have the ability and potential to continue to expand the C-end market.
In the B-end market, the chain rate of the catering industry continues to increase, the demand for standardized, good taste, and high-quality dishes is increasing, the superimposed takeaway continues to increase, the group meal and rural kitchen markets rise, and the market demand for prepared dishes continues to expand. On the other hand, with the gradual maturity of cold storage warehousing and cold chain logistics, the supply radius has been expanded, and the expansion of regional supply capacity for high-quality products has been enhanced. Under the two-way promotion of supply and demand, the prefabricated vegetable industry has a vast space. This also brings sustainable growth opportunities to well-known head companies such as Weizhixiang.
Nowadays, the public knows less about semi-finished dishes, and many people have not yet used such products. With the gradual cultivation of consumption habits, the domestic semi-finished vegetable market is in a stage of rapid development. At present, the pace of life is accelerating, but people's requirements for dietary quality have not been reduced, and under the impetus of the trend of consumption upgrading, consumers' demand for green, healthy and delicious food has increased significantly. Semi-finished dishes can meet the needs of consumers for fast and convenient food, provide high-quality ingredients, have broad market prospects, and also provide broad development space for Weizhixiang.
The commissioning of new projects in the future will bring sustained growth momentum to the company
The investment project of the raised funds is in line with the overall strategic objectives and future development plans of Weizhixiang, and through the implementation of the fundraising project, it will greatly enhance the company's production and marketing capabilities, research and development capabilities and enrich the company's product line series, and will constitute a positive pull on the relevant financial indicators and comprehensively enhance the company's comprehensive competitiveness.
(1) Fermentation bacteria liquid for food with an annual output of 5,000 tons and fermentation and conditioning food project with an annual output of 50,000 tons
The financial evaluation period of this project is 10 years, of which the construction period is 2 years and the production period is 8 years. It is expected that the average annual sales revenue will be 950.7261 million yuan, the average annual net profit will be 103.7978 million yuan, and the after-tax internal rate of return will be 23.55%.
(2) R&D inspection centers and informatization construction projects
This project does not directly produce economic benefits, but through the construction of R & D inspection center and information construction project, it can supplement the company's shortcomings in R&D and inspection talents, technology, equipment, etc., further expand the company's leading edge in industry technology, help the company enrich product categories, improve product quality, improve efficiency and reduce costs; at the same time, through optimizing and improving the information system, it can further integrate the company's business system, comprehensively improve the efficiency of management decision-making and business response, which is of great significance.
(3) Marketing network and training center construction projects
After the project is invested, it does not directly generate economic income, and its benefits are mainly manifested in the cultivation of consumers, maintenance of customer channels, and brand promotion for the company after the completion of the construction of the marketing network, so as to expand market share and establish the company's image.
Looking forward to the future, Weizhixiang will continue to uphold the mission of "inheriting the essence of Chinese cuisine and dedicating good products to the society", on the basis of deeply cultivating the existing categories of semi-finished vegetable products, developing new categories of products such as "Taste Love Crazy" series of high-end hot pot ingredients and "Search for Flavors" series of local specialties, further enriching the product line, and is committed to upgrading from a semi-finished raw material processing enterprise to a provider of delicious solutions for the table. At the same time, the company will strengthen the construction of marketing outlets, enhance the company's brand awareness, build a network sales platform connecting offline sales outlets, etc., to create a multi-channel, multi-level marketing network based on Jiangsu, Zhejiang, Shanghai, and radiation throughout the country, further enhance the company's core competitiveness and competitive advantages, develop into a leading enterprise in the industry, and share the benefits of growth with A-share investors.