Reporter | Zhao Xiaojuan
Edit | Zan Huifang
On October 19, Chengde Lulu (000848. SZ) issued a performance announcement that the company achieved operating income of 1.854 billion yuan in the first three quarters of 2021, an increase of 34.31% year-on-year; net profit attributable to shareholders of listed companies was 400 million yuan, an increase of 33.36% year-on-year.
In contrast, Chengde Lulu almost equaled the sales revenue of the whole year of last year in the first three quarters of this year. According to its 2020 annual report, the company achieved revenue of 1.861 billion yuan that year, the worst of the five years from 2016 to 2020.
Although the performance of Chengde Lulu has rebounded after entering 2021, the problem of its excessive dependence on large items still exists.
In addition to the best-selling classic almond dew, Chengde Lulu has not been able to launch new big items in recent years. Although it once said on the interactive platform, "The company is currently focusing on almond dew, strengthening core products, but also developing related plant protein drinks, choosing opportunities to market." "But in terms of product distribution and market performance, almond dew is still a big company. According to the product classification revenue of the 2020 financial report, the revenue of the company's almond dew series was 1.847 billion yuan, accounting for 99.35% of the total revenue of 1.859 billion yuan.
Interface News visited Beijing Shouhang Supermarket, Yonghui Supermarket and Wumart Supermarket and found that there are three main products under Chengde Lulu sold in supermarket channels, namely almond dew, sugar-free almond dew, and 1 liter of almond dew. A supermarket employee told Interface News that Lulu Almond Dew's customer group is highly loyal, but because of the bitter taste of almonds, customers who hate the taste of almonds are also difficult to be converted.
This presents an opportunity for competitors of the same plant milk sequence. Yangyuan Beverage, the parent company of Six Walnuts, is a strong contender for Chengde Lulu's mouth. In Wumart Supermarket, the same specifications of Chengde Lulu almond dew and Yangyuan walnut almond dew are priced at 4 yuan and 2.9 yuan respectively, while the sugar-free almond dew and six walnut sugar-free products are priced at 4.5 yuan and 4.2 yuan respectively. Chengde Lulu's products are not dominant in price.
In addition, Chengde Lulu's attempts to cut into the children's market are also doing dismal.
In 2016, Chengde Lulu launched a product "Little Lulu" for children. At present, this canned product with a capacity of 145 ml is priced at 45.9 yuan (145ml * 12 cans) in the Jingdong Lulu flagship store, and the unit price of 3.8 yuan is similar to Lulu's classic almond dew (240ml).
In the supermarkets visited by the above interface news, "Little Lulu" products could not be found. Supermarket staff said, "I have not put this product on the shelves, and the better sales are lulu almond dew." ”
A minutes of Chengde Lulu's investor activities in June obtained by Interface News shows that chengde Lulu management admitted in response to investor questions that the effect of Xiaolulu products in promotion is not good, because consumers are more willing to buy classic models. Xiao Lulu is targeted at children, the number of milliliters is smaller, but the input cost in terms of function, raw materials and other aspects is the same or higher than that of the classic model, so it affects sales. In addition, in the packaging, the little Lulu is not attractive enough to children. This year, the company will make improvements to its packaging, portability, and contents.
Judging from the financial report, the company has indeed increased its investment in research and development. In the first three quarters of this year, Chengde Lulu's research and development expenses increased from 7.01 million yuan in the same period last year to 14.18 million yuan, an increase of 102%. Chengde Lulu said that the increase in this part of the cost was caused by the increase in R&D investment during the period.
Securities Star said in a report in June that some insiders said that Chengde Lulu would lay out young consumers on the basis of the original products, launch products for the personalized needs of young consumers, and penetrate consumers of other ages through this consumer group. These new products will provide new performance growth points for Chengde Lulu.
This also makes the industry pay more attention to the trend of Chengde Lulu after the change of coach.
In March this year, Shen Zhijun succeeded Liang Qichao as chairman of Chengde Lulu. Including Liang Qichao, since 2018, Chengde Lulu has replaced 3 chairmen, and the last two chairmen have only served 1 and a half years.
The capital market seems to have a lot of confidence in the new coach. On October 20, Chen Qingqing, an analyst at Guosen Securities, said in a three-quarterly report comment on Chengde Lulu that after the new chairman Shen Zhijun took office, various reform measures were implemented in an orderly manner. The company launched a new sales incentive policy in August, the bonus is not capped to improve the enthusiasm of sales staff; catering channel PET bottles are expected to be launched in the fourth quarter, the research and development of new drinks is actively promoting; the company continues to introduce market, brand, research and development and other aspects of the middle and senior management personnel, equity incentive plan is expected to land after the introduction of talents; the southern market has begun to attract investment.
As a result, Chen Qingqing believes that the operation and management of Chengde Lulu is expected to gradually improve, and the Spring Festival in 2022 is advanced, and its fourth quarter is expected to maintain a high growth rate. At the same time, in terms of investment advice, Chengde Lulu was given a maintenance "buy" rating.