In the case of the third quarterly report of liquor listed companies "seeing red", the performance of Shunxin Agriculture is not satisfactory.
A few days ago, the reporter of the Nandu Liquor New Consumption Index Research Group noted that the third quarterly report of Shunxin Agriculture, a listed company with liquor business, showed that the company's revenue and net profit fell by 6.51% and 14.23% respectively, of which the net profit in the third quarter recorded a loss of 103 million yuan.
Shunxin Agriculture Third QuarterLy Report Core Financial Data (Screenshot Source: Shunxin Agriculture Third Quarterly Report)
Although Shunxin Agriculture did not disclose specific business data in the third quarterly report, Nandu reporter noted that Shunxin Agriculture explained the decline in performance, saying that the decline in performance in the third quarter was mainly caused by the loss of real estate business and pork business, and the company's liquor business in the third quarter was basically the same as the same period last year. But this also means that Shunxin Agriculture's liquor business stagnated in growth in the first three quarters of this year.
According to public information, the liquor business is a business that accounts for more than 70% of Shunxin's agricultural income, of which the low-end liquor represented by the second pot head of Niulan Mountain is the fist product of the company's liquor pipeline. As a representative brand of light bottle wine (that is, liquor packaged in a rude box), Niulan Shan Er Guo Tou has been maintaining a leading position in the field of low-end liquor and light bottle wine.
According to some data, in 2019, Niulanshan, Bofen, Jianzhuang, old village chiefs and Red Star and other dynamic sales data ranked high, and the proportion of Niulanshan City, which ranked first in the list, was about 13.85%, far higher than the red star that was also the head of the second pot.
However, since last year, after many companies have increased the field of light bottle wine, the "top day" of Niulan Mountain is not very good.
According to the Nandu reporter, the head enterprises in the liquor industry continue to increase in the high-end layout, and the regional liquor companies that have suffered from the squeeze in the market will gradually sink the product market and turn to increase the size of the light bottle wine, which means that the market is divided up by competition with the second pot of Niulan Mountain. At the same time, some newly emerging wine companies have had an impact on the Niulanshan Erguotou market, including emerging brands such as Guangliang Wine and Jiang Xiaobai continuing to exert their strength in light bottle wine.
Taking Jiang Xiaobai as an example, at the end of October, Jiang Xiaobai released the "Tenth Anniversary Special Edition Golden Cap" new product in Guangzhou, and the relevant person in charge of the company said that creating a 100-yuan light bottle cost-effective liquor is the long-term goal of the new product, "We hope to pay attention to the user experience and continuously introduce cost-effective products."
Nandu reporter also noted that the field of 100 yuan of light bottle wine is still "concerned" by the liquor giant. Among them, Shanxi Fenjiu's Bofen has always been the main competitor of Niulan Mountain, and some research reports believe that the sales of Bofen this year may exceed the level of 10 billion.
Luzhou Laojiao, one of the leading enterprises, also "bets" on the light bottle wine. Recently, the company focused on the launch of its light bottle wine brand "Highlight". In view of the positioning of "Gaoguang", Zhang Biao, secretary of the party committee and general manager of the sales company of Luzhou Laojiao Co., Ltd., pointed out that "Gaoguang" has opened up a new track for the development of Luzhou Laojiao, "and at the same time, as the third development curve of Luzhou Laojiao, the company will fully match the strategy and resources."
Industry analysts believe that the light bottle wine market is large and fiercely competitive, but the level of profitability is low. In the case of a number of companies adding light bottle wine, the "stagnation" of the growth of Niulan Mountain is also inevitable. Brand management expert Ma Fei said that NiulanShan's own single-bottle profit is reduced, channel thrust is insufficient, etc. are also the reasons, under the impact of policies and competitors, it is expected that its performance growth rate will continue to slow down in the short term.
Nandu reporter also noted that some securities companies are optimistic about the future of Niulan Mountain. Guosheng Securities Research Report shows that in the future, Shunxin Agriculture will continue to focus on the three strategic development markets of Beijing-Tianjin-Hebei, Yangtze River Delta and Pearl River Delta, and improve the product structure in the medium and long term, Niulanshan, as the leader of the bare bottle wine industry, is expected to increase market share with high quality and high cost performance in the future.
At the close of trading on November 2, Shunxin Agriculture reported 32.32 yuan down 1.76%.
For the future market development of Niulan Mountain Erguotou, the reporter of the Nandu Liquor New Consumption Index Research Group will continue to pay attention.