Jialong Co., Ltd. released a performance forecast on the evening of October 14, and it is expected that the net profit attributable to shareholders of listed companies in the first three quarters of 2024 will be 15 million yuan ~ 17 million yuan, a year-on-year turnaround. Basic earnings per share was 0.0161 yuan ~ 0.0182 yuan. The basic earnings per share loss in the same period last year was 0.0301 yuan.
Compared with the loss situation in the previous two years, since the first quarter of 2024, Jialong's performance has gradually "recovered". According to the announcement, in the first quarter of 2024, the company expects the net profit attributable to shareholders of listed companies to be 1.6 million yuan to 2 million yuan, a year-on-year turnaround from a loss of 1.5494 million yuan in the previous year, and an estimated non-net profit of 1.4 million yuan to 1.8 million yuan, compared with a loss of 1.5958 million yuan in the same period last year.
All of the above information shows that Jialong shares have temporarily managed to get rid of the loss situation for two consecutive years. As of press time, the market value of Jialong shares is 1.3 billion yuan.
There is progress, but not much
Jialong shares mentioned in the performance forecast that during the reporting period, the company adjusted its business ideas, formulated marketing strategies, carried out market reforms, and achieved significant results according to market conditions; At the same time, the management of raw material procurement was strengthened, and the prices of raw materials such as monosodium glutamate and disodium nucleotide decreased significantly, and the company's product sales cost decreased year-on-year, and the gross profit margin increased year-on-year.
On the other hand, we continued to strengthen the internal management of open source and cost reduction, solidly promoted various cost reduction and efficiency improvement work, reduced product costs, and improved management efficiency, resulting in a large year-on-year increase in the company's operating performance in the reporting period.
However, combined with the current fierce competition in the industry, Jialong shares are generally "more worried than happy".
Although Jialong shares have a certain market share in the condiment industry, in the face of fierce market competition, its market share has not increased significantly, and may even face the risk of being eaten by other brands.
In recent years, the sharp fluctuations in the prices of major raw materials such as monosodium glutamate and disodium nucleotide have had a great impact on the cost of product sales of Jialong. Although Jialong has taken certain measures in the management of raw material procurement, in the face of the uncertainty of raw material prices, cost control is still a serious challenge.
At the same time, Jialong shares currently mainly rely on provincial agents as first-level distributors to sell products to catering enterprises, household consumers and other terminal markets. This channel model, which is highly dependent on large customers, may not be sustainable and vulnerable to fluctuations in orders from large customers.
In addition, and most importantly, in recent years, there has been no significant innovation or breakthrough in the marketing strategy of Jialong shares. Although the company said that it would closely follow the development trend of the industry and expand marketing channels, the actual effect was not obvious.
In the capital market, the share price of Jialong shares has been depressed for a long time, and it is still facing the pressure of ST and par value delisting.
You can't keep "eating the old book"
Although Jialong Co., Ltd. claims to have been committed to the research and development, production and sales of condiments since its establishment, it has established a good corporate brand image in the industry. The company has established a rich product category, maintains high product quality, and has outstanding product research and development capabilities and stable sales channels, and has a strong competitive advantage in the industry. The company was rated as "Guangdong High-tech Enterprise" and "Guangdong Provincial Enterprise Technology Center". The registered trademark of the company's "Jialong and Tu" was recognized as "China Famous Trademark".
However, at the product level, to this day, Jialong's revenue from chicken powder and chicken essence still accounts for more than 65% of the company's total revenue, of which chicken powder contributes more than 45%.
On the one hand, consumers' demand for condiments is becoming more and more diversified, and the requirements for product quality and taste are getting higher and higher, while Jialong shares are relatively lagging behind in product development and innovation, and it is difficult to meet the new needs of consumers; On the other hand, Jialong shares also have deficiencies in marketing and brand building, resulting in a gradual decline in the market competitiveness of core products.
Although the company achieved a turnaround in the first three quarters of 2024, this improvement was mainly due to measures such as lower raw material costs and internal cost reduction and efficiency improvement, rather than significant growth in core business or market share. At the same time, the company has not seen significant innovations or breakthroughs in channel models, marketing strategies and new business exploration.
In the long run, Jialong shares need to further strengthen the development of the main business, expand new market share, and optimize the channel model and marketing strategy to achieve sustained and stable performance growth. In addition, the company also needs to increase investment and exploration in new business areas such as prefabricated dishes to seek new growth points.