At the end of September, new dairy, which just held the eighth fresh festival in Ningxia, the base camp of Xiajin Milk, handed over a high-growth third-quarter performance report, and on the evening of October 26, New Dairy released the third quarter of 2021 financial report showing that the company's revenue and net profit in the first three quarters increased significantly, and the net cash flow generated by operating activities rose by 90%.
It is worth noting that the new dairy industry with long sleeves and good dance in the capital market is still constantly selling this year, and the new dairy industry with the fresh strategy as the core competitiveness has also completed the construction layout of the national high-quality fresh "milk circle".
<h1 toutiao-origin="h2" >1. Revenue and net profit both grew in high digits</h1>
The report shows that in the first three quarters of this year, the revenue and profit of the new dairy industry achieved high-digit double growth, with revenue of 6.65 billion yuan, an increase of 42.79% year-on-year; net profit of 256 million yuan, an increase of 38.22% year-on-year; deduction of non-net profit of 221 million yuan, an increase of 53.99% year-on-year.
In addition, the third quarter revenue was 2.334 billion yuan, an increase of 11.08% year-on-year; the net profit was 110 million yuan, an increase of 1.24% year-on-year; and the deduction of non-net profit was 102 million yuan, an increase of 10.37% year-on-year.
For the third quarter of the net profit growth rate slowed down significantly, New Dairy said that because of the existence of equity incentive amortization and convertible bond interest expense of 21.5 million yuan in the current period, if compared with the same caliber, the net profit attributable to the company's shareholders in the third quarter increased by more than 20% year-on-year.
It is also worth noting that the net cash flow generated by the operating activities of New Dairy in the first three quarters of this year reached 790 million yuan, an increase of 90% year-on-year, highlighting the improvement of business quality.
<h1 toutiao-origin="h2" >2</h1>
At present, "selecting fresh in milk, selecting the best in fresh" has become the mainstream trend of the development of the domestic dairy industry. The new dairy industry, which has been promoting the "fresh strategy", is also constantly tapping the core of the value of improving "fresh".
Last year, New Dairy launched the "Golden 24-hour Fresh Milk", with superior quality and consumer interaction and communication, the share in the Sichuan market exceeded 5.1% in only 3 months, facing the low-price strategy existing in the market, still maintaining the share advantage, opening up the new dairy "24 hours" value competition model.
In September this year, New Dairy released a new 24-hour platinum all-excellent milk, screening excellent cattle breeds and 5% extreme "quality" milk sources, using the industry-leading "72 °C, 15S pasteurization technology" and Swedish membrane filtration process, creating the industry's first fresh milk containing 5 kinds of active nutrition and 7 trace elements, immunoglobulin reached 20 times that of ordinary fresh milk, refreshing the new record of domestic low-temperature fresh milk in the dimensions of fresh nutrition and excellent quality.
According to the data recently released by Kantar Consumer Index, dairy sales and penetration rates both lead the overall FMCG market, of which the low-temperature fresh milk category has developed rapidly, and sales and penetration rates in the first half of this year have increased by 17% and 27% year-on-year, ranking first in dairy products.
Obviously, since its inception has been based on low-temperature fresh milk as the new dairy industry at the right time, thick accumulation of hair, in May this year, new dairy will also upgrade its fresh strategy to the 3.0 version of the "fresh cube" strategy, and carry out a series of measures: further improve the "fresh ecosystem" of "pasture - factory - market", build a matrix of fresh milk products, actively promote the digital transformation of the supply chain, expand subscriber channels, brand marketing around the "fresh value" to carry out consumer interaction and communication, The fresh milk moat with new dairy characteristics has been established, which fundamentally promotes the sustainable growth of enterprises.
<h1 toutiao-origin="h2" >3.Capital long-sleeved good dance to build a national "milk circle"</h1>
It has to be said that the performance of the new dairy industry rose sharply in the first three quarters, and there is another important factor, that is, to take the path of differentiated development of mergers and acquisitions to ensure that the epitaxial growth of the new dairy industry has high certainty.
New Dairy said in the report that the company's revenue growth, on the one hand, the company's business achieved rapid growth after the new crown epidemic, and on the other hand, the consolidated statements of a number of companies acquired by New Dairy during the reporting period. Including Ningxia Huanmei Dairy (which owns the Xiajin milk brand), Fujian New Hope Ao Niu Dairy Co., Ltd., Fujian Xin'ao Animal Husbandry Co., Ltd. were included in the scope of consolidated statements in July 2020, and Chongqing Hanhong was included in the scope of consolidated statements in March this year.
Among them, the most worth mentioning is the announcement of New Dairy in May last year to acquire 100% of the equity of Huanmei Dairy for 1.711 billion yuan, at the end of last year, the acquisition was completed, in the words of New Dairy, the merger of the two sides is "zero run-in", maintaining sustained high growth, and the first half of this year's summer low temperature dairy products have begun to make profits.
At the recent fresh ceremony, New Dairy also announced that it would build Xia Jin into a geographical indication of "Ningxia Milk" and achieve the strategic goal of "doubling sales revenue, doubling low temperature products, and 3 times increasing dairy cattle inventory".
As we all know in the industry, the most important thing for enterprises that focus on high-quality fresh milk is to have high-quality milk sources. In the capital market, the new dairy industry, which is good at dancing with long sleeves, has long begun to lay out the upstream high-quality fresh milk source. In 2019, New Dairy invested in Modern Animal Husbandry as its second largest shareholder, and the third quarterly report showed that the dividend income of Modern Animal Husbandry during the reporting period was 12.77 million yuan.
Just in September this year, New Dairy issued an announcement announcing a strategic stake of US$58.4 million in Aoya Group, with a shareholding ratio of 5%, and also signed a 5-year milk supply agreement based on 2022 and renewable on a rolling basis, adding a strong guarantee to New Dairy's high-quality milk supply.
Up to now, New Dairy has built a national "milk circle" in the southwest, northwest, east China, central China, north China and southeast China.
<h1 toutiao-origin="h2" >4. The agency predicts that the three-year doubling target is expected to be achieved more than expected</h1>
Nonsense is reasonable to note that at the end of last year, New Dairy also announced the implementation of a stock incentive plan for the first time since its listing. According to the incentive plan, New Dairy aims to almost double its operating income and net profit within three years, that is, by 2023, New Dairy's revenue and net profit targets will be no less than 13.16 billion yuan and 528 million yuan.
"The new dairy 'epitaxial expansion + endogenous growth' at the same time, the three-year doubling target is expected to be completed beyond expectations", Southwest Securities recently released a research report saying that on the one hand, the new dairy industry has initially established a national layout framework, and the future epitaxial expansion trend is expected to continue; on the other hand, the new dairy industry continues to exert efforts in new marketing channels, and continuously promotes the development of near-field and far-field e-commerce from quality improvement and capacity building. In addition, in terms of operational excellence, the company continues to strengthen the quality of operation management through digital transformation and refined management of the supply chain. Finally, under the guidance of the "fresh strategy", the new dairy's low-temperature product structure upgrade and post-investment management experience accumulation, the net profit margin of each subsidiary generally showed an upward trend, it is expected that the scale effect will show results, and the long-term profitability is expected to continue to improve.