Cover news reporter Xiong Yingying
A shares have never lacked long-established brands, from Guizhou Moutai and Wuliangye, to Katazai, Yunnan Baiyao, Haitian Flavor Industry, not only has a century-old history, but also is an undisputed industry leader in the capital market.
However, after knocking on the door of capital, some long-established brands have gone downhill more and more because of poor management. Xi'an Catering deducted non-net profit for eight consecutive years as negative, Quanjude's performance declined for five consecutive years, and the dog ignored the delisting last year... Such a performance has also made investors skeptical about the long-established brands that have frequently sought to go public in recent years.
With the release of the semi-annual report, the reporter noticed that a number of long-established enterprises fought a performance turnaround battle in the first half of this year.
In the first half of the year, 7 long-established brands doubled their performance
26 long-established brands disclosed semi-annual reports
Only 3 companies saw their net profits decline year-on-year
According to iFinD statistics, there are 60 "time-honored concept stocks" in the A-share market, involving pharmaceuticals, liquor and beverages, food and beverages, retail department stores and other industries, and 26 companies have disclosed their 2021 semi-annual reports so far.
From the performance point of view, all long-established enterprises achieved revenue growth in the first half of the year, and the net profit of 23 companies increased year-on-year. Among them, 7 companies have doubled their net profit growth, and Gui Faxiang's net profit has increased by more than 539%. Gui Fa Xiang Eighteenth Street Twist Flower was born in 1927, is a professional engaged in traditional characteristics and other leisure food research and development, production and sales of food enterprises.
Shede Liquor industry followed closely behind, achieving a net profit of 735 million yuan in the first half of the year, an increase of 347.9% year-on-year.
During the reporting period, only 3 long-established brands saw their net profit growth decline year-on-year, namely Hengshun Vinegar, Tongqinglou and Zhejiang Zhenyuan. Among them, the net profit of Hengshun Vinegar Industry fell by 14.62%, the largest decline, and the net profit level of 128 million yuan pulled the company back to 2018.
Brokerage analysis pointed out that its performance decline is mainly due to the rise in raw material costs, as well as product structure adjustment, low gross profit margin of large packaging products increased. Due to poor performance, the company's stock price also hit a new low in the year in recent days, falling by more than 40% from the highest point in February this year.
Anhui's long-established Tongqing Building, which focuses on banquets, saw its net profit fall by 11% in the first half of the year, and its income did not increase profits. Mainly because of the repeated epidemic in the first quarter, the government restricted cluster consumption, and the annual meeting of the unit was basically cancelled, resulting in the postponement of some banquets and the impact on store operations.
A number of long-established brands turned losses into profits from the same period last year
Digital transformation, business expansion
A number of long-established brands turned losses into profits
Affected by the epidemic, many food and catering enterprises have suffered a greater impact in 2020. But at the same time, there are also many long-established brands that have experienced continuous losses and finally ushered in growth in the first half of this year.
For example, Xi'an Catering, in the first half of the year, revenue and net profit rose by 97.56% and 11.72% respectively, although the net profit is still a loss, but compared with the same period last year, the loss decreased. This is also the first semi-annual report of Xi'an Diet to increase in the same period in the past three years.
The company said that in the first half of the year, through the adjustment and optimization, streamlining of products and the development of online marketing, the catering business increased by 106.98% year-on-year; at the same time, through the research and development of new products, packaging upgrades, technological transformation and cultural and creative empowerment, the food industry revenue increased by 139.56% over the same period last year.
The net profit of East Ejiao in the first half of the year increased by 278%, turning a loss into a profit year-on-year.
In 2019, due to factors such as high pressure to destock and intensified competition in the industry, East Ejiao experienced its first loss after listing, and it is still in a state of loss in the first half of 2020. From the second half of the year, the situation gradually improved.
In the first half of this year, the company achieved revenue of 1.687 billion yuan and net profit of 150 million yuan; ejiao and series product revenue increased by 87%. This is mainly due to digital transformation, opening up key links such as production and marketing, and realizing the product from a single OTC terminal to an omni-channel layout.
In addition, Hainan Coconut Island and Harbin Pharmaceutical Co., Ltd. have also successfully achieved a turnaround. Among them, Hainan Coconut Island began to enter the liquor industry from the first half of this year, and the operating data showed that its liquor sales revenue has exceeded that of health liquor.
Despite the advantages of the long-established brand, the external environment is undergoing profound changes. For long-established enterprises, listing is not the same as landing, and if you want to be recognized in the capital market, performance is still the most critical factor. Only by actively transforming and constantly making breakthroughs can it be possible to achieve "new shoots of old trees".
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