The A-share quick-frozen food boss is going to sprint to Hong Kong stocks.
Recently, Anjing Food (603345. SH, hereinafter referred to as "Yasui") announced that in order to accelerate the internationalization strategy and overseas business layout, and enhance overseas financing capabilities, the company intends to issue shares (H shares) overseas and list on the Stock Exchange of Hong Kong Limited.
At present, the listing plan has passed the resolution of the board of directors, and Yasui has also authorized the management to start the preparatory work for the H-share listing, the specific details have not yet been determined.
It is worth mentioning that Yasui, which is preparing to go public in Hong Kong, does not have severe financial pressure, but has a stable cash flow.
According to the third quarterly report, as of the end of the third quarter of 2023, the balance of cash and cash equivalents on Anjing's account was 4.879 billion yuan (RMB, the same below), the total accounts receivable and notes receivable were 521 million yuan, and the trading financial assets were 889 million yuan.
The "internationalization" strategy proposed by Yasui has rarely been publicly mentioned before, and the current overseas business accounts for only 1%.
It is planned to be listed in Hong Kong
Since announcing on January 19 that it will be listed in Hong Kong, Yasui's share price has been falling endlessly.
On the first trading day after the announcement (January 22), Yasui's stock price fell directly to the limit. In the following trading days, the downward trend did not stop. As of today's close (January 25), it has fallen to 79.97 yuan / share.
For the news of the IPO of Yasui Hong Kong stocks, the market voted with real money.
△ Image source: Screenshot of Xueqiu.com
According to data from Xueqiu.com, in the past three days, the activity of Yasui stocks has been much higher than usual, and the single-day trading volume on January 23 was as high as 187,900 lots. From January 23rd to 25th, the turnover reached 1.493 billion yuan, 814 million yuan and 743 million yuan respectively.
In fact, the current valuation and liquidity of the Hong Kong stock market are not ideal. Some investors are worried that the listing of Anjing Hong Kong stocks may have an impact on the valuation and growth of its A-shares, and some shareholders believe that the company is not short of money at present, and there is no need to go to the Hong Kong stock IPO.
According to the third quarterly report, as of the end of the third quarter of 2023, the balance of cash and cash equivalents on Anjing's account was 4.879 billion yuan, the total accounts receivable and notes receivable were about 521 million yuan, and the trading financial assets were 889 million yuan.
Of course, some investors believe that "Yasui is still in the fast lane of growth, and the growth in the next 10 years is very certain, and the aging of the population will also expand the prefabricated vegetable market."
Nearly 7.7 billion yuan was raised, and more than 6.2 billion yuan was cashed out in 6 years
In February 2017, Yasui landed on the A-share market, and since its listing, Yasui's revenue scale and net profit have maintained a year-on-year growth trend.
From the perspective of revenue scale, in 2017, Yasui's revenue was 3.484 billion yuan, and by 2022, the annual revenue has exceeded 12 billion yuan. Anjing, which has crossed the threshold of 10 billion, has also surpassed the old quick-frozen enterprise Sanquan Foods and has become a real quick-frozen leader.
In terms of net profit, in the first three quarters of 2017-2023, in the past six years, Yasui earned a total of 4.354 billion yuan. Among them, in 2020 and 2022, Yasui's net profit will grow by more than 60% year-on-year. In the first three quarters of 2023, Yasui's net profit has exceeded that of the whole year of 2022, and the fourth quarter is the traditional peak season for quick-frozen enterprises, and the net profit level for the whole year of 2023 may be further improved.
Behind the brilliant performance, Yasui's share price has risen all the way, reaching a high of 283.99 yuan per share. At present, although it has fallen for many days, it has increased several times compared with the issue price of 11.12 yuan per share at the time of listing.
However, investors do not enjoy much of the dividends.
According to public data, since its listing in 2017, Yasui has paid dividends a total of 8 times, with a total dividend of about 1.25 billion yuan. And the dividend of 1.25 billion yuan is a small drop in comparison with the financing obtained by Yasui.
According to relevant announcements and public reports, since its listing, Yasui has received a total of nearly 7.7 billion yuan in financing. In 2017, Anjing raised 601 million yuan in public offerings. After that, almost every two years or so, Yasui will carry out one financing, or private placement or issuance of convertible bonds, and most of the funds raised are used to expand production capacity.
At the end of July 2018, Yasui publicly issued 500 million yuan of convertible bonds. At the end of July 2020, Yasui issued another 900 million yuan of convertible bonds. In May 2021, Yasui issued a fixed increase plan to issue no more than 5.74 billion yuan. In March 2022, the private placement disclosed by Yasui showed that the private placement finally raised 5.675 billion yuan, and after deducting the issuance expenses, the net amount of funds raised was 5.635 billion yuan.
This means that in the past seven years, Yasui's dividends have only been one-sixth of the total amount raised.
At the same time, the actual controllers and executives are frequently reducing their holdings and cashing out.
According to the announcement, since its listing, the company's actual controller and many executives have reduced their holdings many times, and since 2018, the total amount of holdings has exceeded 6.2 billion yuan. In 2023 alone, the company's shareholders Fujian Guoli Minsheng Technology Development Co., Ltd. and Chairman Liu Mingming will reduce their holdings by 5% and 1.09%, respectively.
In addition, the actual controller of Yasui has also changed. In September 2023, Anjing Foods announced that the actual controller of the company was changed from Zhang Gaolu to Hang Jianying and Lu Qiuwen.
A series of operations have somewhat made investors uncertain about the future business development of Yasui. Against this backdrop, Yasui has proposed an internationalization strategy, but will it be a good story?
Overseas income accounts for only 1%, and there are still difficulties to overcome overseas
The catering supply chain guide noted that from 2021, Yasui officially included overseas revenue in the financial report separately, and the revenue scale of overseas business in that year was 35 million yuan. In 2022, this figure will become 108 million yuan, with a year-on-year growth rate of 207.34%.
In the first three quarters of 2023, Yasui's overseas revenue was 90 million yuan, an increase of 13.09% compared to the same period in 2022.
In the past three years, Yasui's overseas business has been growing. Especially in 2022, it will skyrocket by more than 2 times. However, this may be due to the acquisition of British Kung Fu Foods.
△ Image source: Picture Worm Creative
According to the financial report, in 2021, Anjing's overseas revenue will be 35 million yuan. In the first half of 2022, the revenue of Anjing's overseas revenue was 54.0262 million yuan, exceeding the overseas revenue of the whole year of 2021. In this regard, Yasui admitted that the increase in overseas markets is mainly due to the sales of British Kung Fu Food of the subsidiary and the export sales of Xinhongye.
Although overseas revenue has increased year after year, the gross profit margin has shown a downward trend.
In 2021 and 2022, the gross profit margin of Yasui's overseas revenue will be 28.84% and 16.29%, respectively. For the gross profit margin in overseas areas to decrease by 12.55 percentage points in 2022, Yasui explained that the gross profit margin of Kung Fu Food's main business has decreased.
From the perspective of revenue scale, the current contribution rate of overseas revenue to the overall revenue is only about 1%. At present, the overseas business has not yet formed a scale effect, and the synergistic effect on the overall business layout of Yasui is not strong. This also means that its internationalization strategy still has a long way to go.
From the perspective of the entire quick-frozen industry, there are not many enterprises that have deployed overseas business, such as Haixin Food (002702.SZ), Huifa Food (603536. SH) and so on. However, similar to Yasui, the overseas business of these companies is only in its infancy and has not yet formed a scale.
Among them, Haixin Food's overseas revenue from 2020 to 2022 will be 2.8058 million yuan, 5.8191 million yuan, and 6.6874 million yuan respectively, accounting for 0.17%, 0.38%, and 0.41% of the total revenue respectively, and the contribution of overseas income is quite limited.
Huifa Food's overseas revenue is also growing, from 713,100 yuan in 2021 to 3.8526 million yuan in 2022, but compared with the revenue of 1.581 billion yuan in 2022, the overseas income of 3.8526 million yuan is negligible. In addition, the gross profit margin of Huifa's overseas business decreased from 21.18% in 2021 to 16.57% in 2022.
This also means that the overseas layout is still in the initial stage for domestic quick-frozen enterprises, and the impact on the overall business is minimal, and it is not easy to really make money in the overseas market.
After years of development, Yasui has formed a production base layout centered on East China and radiating the whole country. But abroad, Yasui has not yet established an advantage, and there are many challenges ahead. Whether it can tell a good story to overseas consumers remains to be seen.