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In addition to the coconut palm juice that has been repeatedly searched for on the "lace news", the coconut juice market has not set off any waves for a long time, until today, Happy Home is listed.
Today, Yang Mi's endorsement of Happy Home was listed on the ChiNext board of the Shenzhen Stock Exchange, and on the first day of listing, it rose 571.46% to 33.17 yuan, and the market value was once close to 15 billion yuan. The issue price of the shares was 4.94 yuan per share, and the price-to-earnings ratio was 12.76 times. As of the close of trading on June 2, the share price of Happy Home was 31 yuan per share, and the market value reached 13.95 billion yuan.
According to public information, Happy Home was founded in 2001 and is headquartered in Zhanjiang City, Guangdong Province, mainly engaged in the research and development, production and sales of food and beverage products such as coconut juice, fruit juice drinks, lactic acid bacteria drinks, and canned fruits. The company's products are mainly divided into two categories: the first is coconut juice plant protein drinks, juice drinks, lactic acid bacteria drinks and other beverage products; the second is canned fruit, canned porridge and other canned foods.
It is understood that Happy Home has laid out a number of production bases across the country. The company has three production bases in Zhijiang, Hubei, Hanchuan, Shandong, and Zhanjiang, Guangdong, with a total area of more than 1,000 mu. In 2020, the company's sales of canned products were 61,000 tons, and the sales of beverage products were 141,000 tons. The multi-point layout of the company's production base nationwide can reduce the cost of product logistics and ensure the timely and stable supply of products.
Channel side. Happy Home has established a sales network with numerous outlets, wide coverage and strong penetration. In 2020, the number of signed dealers cooperating with the company was 1748, and the sales area has covered 31 provinces, municipalities and autonomous regions across the country. The continuous expansion of the sales network is the concentrated embodiment of the company's market competitiveness.
According to the prospectus, the total amount of funds raised is 1.292 billion yuan, which is planned to be used for the construction project of smart new retail network, with an annual output of 136,500 tons of beverages and canned food construction projects, marketing network construction projects, research and development testing center projects, information system upgrading construction projects, and supplementary working capital and repayment of bank loans. Among them, the total investment in the construction project of smart new retail network reached 650 million yuan, accounting for more than half of the fundraising.
The controlling shareholder of Happy Home is Haoxing Investment, which holds 63.54% of the total share capital of the company. The actual controllers of the company are Li Xing, Zhu Wenzhan and Li Kangrong. Li Xing and Zhu Wenzhan are husband and wife, and Li Kangrong is li Xing's younger brother. Li Xing, Zhu Wenzhan and Li Kangrong directly hold 29.65% of the company's equity, Li Xing and Zhu Wenzhan hold 63.54% of the company's equity through Haoxing Investment, which they control, and Li Kangrong holds 19.09% of the capital contribution of rongxing investment, the shareholder of the issuer, and indirectly enjoys 1.30% of the company's interests. The shares directly held and indirectly controlled by Li Xing, Zhu Wenzhan and Li Kangrong together accounted for 93.19% of the total share capital of the company.
At the beginning of the establishment of Happy Home, relying on the advantages of regional resources, it specialized in the production and operation of canned fruits, canned seafood and canned quail eggs, and after nearly 20 years of development, it has become one of the top three fruit canned producers in the domestic industry.
Overall, in recent years, the fruit canning industry performance is more general, from the perspective of consumption upgrading, canned does not meet the future consumption development trend, the development of cold chain technology makes consumers more inclined to fresh fruit, Happy Home has to expand on the category to try.
In 2014, Happy Home entered the coconut juice beverage market, and the industry pioneered the use of core technologies such as fruit grain addition technology under sterile cold filling conditions and coconut juice secondary homogenization technology to launch the "Happy Home Raw Press Series" products.
Among them, coconut juice of "coconut juice + pulp" quickly became the pillar product of the company after it was listed. Compared with the traditional method, the customized instantaneous high-temperature treatment process takes into account the integrity of the fruit grain under the premise of safety and quality, and the differentiated and innovative products make the company quickly become a strong brand in the field of segmentation.
Subsequently, Happy Home has successively launched fruit juice drinks, lactic acid bacteria drinks and other products; in 2019, the company has launched new products such as eight treasure porridge and functional drinks.
In 2018 and 2019, the operating income of Happy Home was 1.355 billion yuan and 1.424 billion yuan, respectively, an increase of 13.39% and 5.12% over the previous year, and the net profit was 161 million yuan and 207 million yuan, respectively, an increase of 93.03% and 28.46% over the previous year; the growth rate of revenue and net profit decreased twice.
Affected by the epidemic, the company's operating income in 2020 was 1.247 billion yuan, down 12.44% year-on-year; net profit was 179 million yuan, down 13.59% year-on-year. From the category point of view, the beverage revenue was 734 million yuan, accounting for 59.09%, of which the main product plant protein beverage income was 571 million yuan, accounting for 45.95%; canned products were 479 million yuan, accounting for 38.55%.
Even though it has been deployed nationwide, many people still say that they are not very familiar with the brand of Happy Home. The main reason is that the beverage industry relies on advertising to open up popularity and lay channels, but there are fewer marketing actions in Happy Home.
However, in the past two years, Happy Home has changed, such as replacing the spokesperson with the topic queen Yang Mi, so as to achieve in-depth docking with a new generation of young consumers, and also marks that its brand's youthful and personalized strategic layout has entered a new stage; in addition, Happy Home has accurate insight into the industry trend, and "earthy packaging" is also converging with coconut palm juice.
In recent years, plant-based diets have become an emerging trend in the food industry. Among them, the development trend of coconut-based drinks is even more "jaw-dropping".
Coconut water is known as the healthiest soft drink, led by coconut trees, China's local coconut water producers are mainly based on the production of natural coconut water, without any additives has won a large number of consumers love, especially in some areas of the banquet market, drinking more than Coca-Cola, Mei Juice Source and other big brands.
From 2014 to 2019, the annual output of plant protein beverages increased from 5.626 billion liters to 8.784 billion liters, with a compound growth rate of 8.91%. According to the white paper "Innovation Trends of Plant Protein Beverages in 2020", the growth rate of the Tmall online plant protein beverage market in 2020 is as high as 800%, the number of buyers is up 900%, and the growth contribution in the beverage market is 15.5%, ranking third, becoming the high-speed engine driving the growth of the beverage market.
Among them, coconut water, with its rich nutritional value of plant protein, vitamins and other nutrients, has risen rapidly in sub-categories and has strong demand. In addition, as major brands have begun to use coconut elements in their drinks, it is expected that the market share of coconut drinks will continue to rise.
According to the data survey of the Prospective Industry Research Institute, coconut juice is the highest proportion of raw materials in the segmentation of China's plant protein beverages in 2019.
At present, the main brands of coconut juice in China are Hainan Coconut Brand Coconut Juice, Special Soldier Coconut Juice, Mei Juice Source, Happy Home and some Southeast Asian brands. The highest market share is the "hot search regular" coconut brand coconut juice, which once exceeded 5 billion; Happy Home, Special Soldier and Coconut Tai are close behind; mei juice source is also expanding the market through price wars. In addition, giants such as Wahaha, New Hope and Huiyuan have also laid out.
From the perspective of raw materials and technology, the raw materials of big brands of coconut milk products are basically imported, and the imported coconut milk used by Unity, Huiyuan and Silver Heron; the coconuts used for Wahaha raw squeezing are from Indonesia, and the Happy Home uses Vietnamese coconuts. The second small brand special soldier coconut juice is also raw squeezed, but because of the cost of raw materials, pure coconut water is not made, but coconut fiber fruit is added to make up for the lack of taste.
An industry insider said that in recent years, although the pattern of coconut juice drinks is relatively stable, it has not been able to achieve further breakthroughs. However, as the new generation becomes the main force of consumption, who can win their favor, who has hope to win the future.
For the listing of Happy Home, it is believed that under the background of national policy support, broad industry prospects, and continuous consumption upgrading, Happy Home, as one of the leaders in the coconut juice beverage field with comprehensive strengths such as products, channels and marketing, is expected to usher in the growth opportunities of the subdivision track brought about by consumption upgrades.
However, the coconut juice beverage industry is still fiercely competitive, the leading coconut palm juice is not easy to shake, the latecomer special forces are chasing after it, and the source of coconut Thai and American juice is eyeing the tiger. It remains to be seen whether Happy Home, which seized the opportunity through listing, can continue to consolidate its advantage and take advantage of the chase.