Haitian Flavor Industry, once known as "soy sauce grass", once soared in stock price, and its market value has been rising. However, the bursting of the white horse stock bubble in recent years has cast a shadow on this former scenery.
In 2019, Haitian Flavor's share price was only about 30 yuan, but by 2021, its share price has risen to 126.2 yuan, and its market value once surpassed Sinopec. However, from 2021 to 2023, Haitian Flavor's share price has suffered a sharp decline, and its market value has shrunk by as much as 480 billion.
This continuous decline actually reflects the changes in the fundamentals of Haitian Flavor Industry. Haitian Flavor's performance is closely related to the stock price performance. Taking 2020 as an example, Haitian Flavor's performance achieved double-digit growth that year, but after entering 2021, the performance growth rate began to slow down, and even showed negative growth. This was mainly affected by changes in the external environment, such as the continued rise in raw material prices and the depression in the catering market.
Although Haitian Flavor has been promoting diversification and transformation, compared with mature products, new growth points have not yet emerged. Investors have chosen to flee, which makes Haitian Flavor Industry face huge challenges and tests. Although the performance in the first quarter of 2024 has rebounded slightly, in order to truly get out of the predicament, Haitian Flavor still needs to work hard to cope with various challenges.
Despite the challenges facing Haitian Flavor, there are also some signs of hope. First of all, Haitian Flavor has rebounded in terms of performance in the first quarter, which shows that the company is taking effective measures in response to changes in the external environment. Secondly, Haitian Flavor has been promoting diversified transformation and striving to find new growth points. For example, the company continues to introduce new products, expand the edible oil business, and increase investment in the field of compound condiments. These measures are expected to bring new performance growth points to Haitian Flavor.
However, in order to truly achieve recovery, Haitian Flavor still needs to face many challenges and difficulties. First of all, the company needs to deal with the pressure of rising raw material prices and seek ways to reduce costs and increase efficiency to maintain product gross margins. Secondly, Haitian Flavor needs to accelerate the pace of product innovation and continuously improve product competitiveness to attract more consumers. At the same time, the company also needs to strengthen cooperation with the catering industry, develop new sales channels, and increase market share.
In addition, Haitian Flavor also needs to strengthen corporate management and internal operations to enhance the overall competitiveness of the enterprise. The company should strengthen financial management, control costs, improve the efficiency of capital utilization, and ensure the steady development of the enterprise. At the same time, Haitian Flavor should also strengthen the construction of talent team, cultivate a high-quality workforce, and provide a solid talent guarantee for the development of the enterprise.
Overall, Haitian Flavor is facing many challenges and pressures, but there are also some signs of hope. Only if the company can maintain a sound business strategy, continue to innovate and develop, and actively respond to changes in the external environment, can it get out of the predicament and achieve sustainable development. It is believed that with the joint efforts of the company's leaders and all employees, Haitian Flavor will be able to usher in new development opportunities and once again achieve performance improvement and market growth.