Why is Qianhe Weiye "soaring"?

Jade seeks a good price in the clump, and flies when it is waiting in the crow.

Jia Yucun chanted this poem when he was poor, and Zhen Shiyin regarded him as an aspiring person and sponsored him to entangle himself in Beijing to rush for the exam. After that, Jia Yucun took the entrance examination for junior high school, but was dismissed for corruption and favoritism, and later climbed to Jia House by taking advantage of Lin Ruhai's connections because he was Lin Daiyu's teacher. Later, Guan Hai went up and down, and finally he was imprisoned because of official irregularities.

This shows that there are at least two things that are important for people to be successful and start and end well:

First, there must be opportunities.

Your people are one of the ways opportunities arise. Without the help of Zhen Shiyin and Lin Ruhai, Jia Yucun wanted to mix up an official and a half-job, and it would have to be the year of the monkey.

Second, people must act rightly.

Steady and far-reaching, righteous and far-reaching.

Jia Yucun is very good at opportunistic and opportunistic, but he was later dismissed mostly related to corruption and lawlessness, and even arbitrarily sentenced the Hulu case, knowing that Yinglian was the daughter of his benefactor Zhen Shiyin who was abducted by human traffickers, and in order to curry favor with Jia Fu for Xue Pan, he did not even rescue Yinglian from Xue Fan. He was later imprisoned and deserved it.

Looking back on the explosive growth of Qianhe Wei Industry in the past year, luck and strength are indispensable.

First, how to interpret the reasons for the sharp increase in the first three quarters of Qianhe?

According to the company announcement of Qianhe Weiye on September 27, in the first three quarters of this year, the company's net profit attributable to parents and net profit deducted from non-attributable parents almost doubled. Since the net profit of Qianhe Wei Industry in the same period last year was 187 million yuan, then in the first three quarters of this year, Qianhe Wei Industry made a net profit of at least 350 million yuan.

The reasons for the company's growth are:

1. The company strengthens product quality, actively explores the market, optimizes marketing channels, improves market competitiveness and expands sales scale.

2. The purchase price of packaging materials decreased year-on-year, and the miscellaneous rate of products decreased, resulting in an increase in gross margin; The scale of sales increased and the input-output ratio of selling expenses increased, resulting in an increase in net profit margin.

The above two paragraphs read a bit abstract, and we have to read them in conjunction with the income statement.

There are three key words:

Expansion of sales scale;

improved gross margin;

Net profit margin improved.

Personally, I believe that the main reason for the increase in gross profit margin of Qianhe Weiye is the decrease in unit cost due to the increase in sales volume, rather than the increase in unit selling price caused by product price increases. Qianhe Weiye's third quarterly report also did not mention product price increases.

The figure below is the data of the operating cost ratio of Qianhe Wei Industry in each quarter extracted from "Flush iFinD", and the company's cost ratio in the first quarter of this year was 60.97%, lower than 65.02% in the same period last year; The cost ratio for the second quarter was 62.57%, down from 64.28% in the same period last year.

Considering the current situation where condiment production capacity is almost saturated and competition is fierce, the possibility of raising prices to increase gross margin is very low; The company's quarterly cost ratio is as little as 2 percentage points or more than 5 percentage points, which is likely to be the economies of scale produced by large sales growth.

Although the company does not currently disclose product sales data, it can be speculated that the company's sales growth rate is greater than the revenue growth rate; Instead of a decrease in sales and an increase in revenue as Kweichow Moutai, which once raised prices.

Second, Qianhe Wei Industry has the ability to adapt to the times

The image below was seen at the entrance of the supermarket last Sunday.

Qianhe Weiye held a value-added special sale outside the cashier from 9.23 to 9.24, covering soy sauce, vinegar and cooking wine series products, starting from 9.9 yuan, and there were good gifts when the full amount was full.

The entrance of this supermarket is close to the cash register and has a high traffic of customers; And Qianhe Weiye is very conspicuous in setting up a stall here, which specifically reads "Seasoning is healthy, Qianhe 0 added"; The price is also very favorable.

This just confirms our previous speculation, at present, Qianhe Wei Industry is increasing sales to seize the market, and some of the company's products are reducing prices and promotions, so as to attract more consumers and let "Qianhe soy sauce" penetrate into more consumers.

Some netizens once joked, "Haitian falls, Qianhe eats full".

There is an element of exaggeration in saying this, but Qianhe Weiye will especially take advantage of the opportunity vacated by Haitian due to last year's public relations incident, which is beyond doubt.

In addition, before the condiment additive incident, Qianhe Wei Industry has always focused on high-end soy sauce, focusing on zero addition, so when the opportunity arises, it acts quickly, accurately and in time, vigorously marketing its own "0 addition" identity, driving sales growth through low-price promotions, and pocketing many original Haitian consumers.

If Haitian Taste Industry has the ability of Qianhe Taste Industry to change from time to time and be fast and ruthless, will Haitian's performance be better now? The figure below is the sales of Haitian soy sauce and Qianhe soy sauce from the Meituan community this afternoon, basically the sales of each Haitian soy sauce are greater than 40,000, and the sales of Qianhe soy sauce only 9.99 have more than 40,000, but you can feel the fierce competition between Qianhe and Haitian.

Third, there is no perfect enterprise, Haitian and Qianhe are not perfect

Whether to buy Haitian or Qianhe, depending on your own understanding of the two companies, this article only provides an analytical perspective, namely:

The substantial growth in the performance of Qianhe Weiye in the first three quarters of this year is related to the company's strong adaptability, and also related to the company's focus on 0 addition track, relying on luck and strength. When the opportunity arises, based on the original product base, Qianhe Weiye will be special in sales, expand product sales through promotion, thereby reducing unit costs and improving the company's profit level.

As for whether Qianhe's high growth can be sustained, I personally have reservations.

Haitian Taste is large and has insufficient adaptability, but the company has made changes; In addition, Haitian's original competitive advantages have not been lost, such as scale advantages, channel advantages, etc., it will be a condiment leader that cannot be ignored in the future.

Finally, it ends with a sentence:

There is no solid moat, and the only moat is the ability to constantly adapt to change and create value.