Laziness, laziness is a new outlet, and prefabricated dishes have become the "snail myth" of the new era for young people?
According to the "White Paper on the Development of China's Prefabricated Vegetable Industry in 2022", the national market size of prefabricated vegetables will be 419.6 billion yuan in 2022, and it will break through the trillion mark by 2026.
The popularity of prepared dishes is obvious, but shopping malls are like battlefields. The more competitive the high-growth track, the more "masters" must "one step ahead", and Shuanghui Development is one of these "masters". Recently, Shuanghui Development released the 2023 semi-annual report. Data show that in the first half of 2023, the sales volume of Shuanghui Development's prepared vegetable products will reach 36,000 tons, achieving a year-on-year growth of about 80%.
So, after four years of preparation, is the prefabricated vegetable project developed by Shuanghui about to achieve a new leap in "flying dragons in the sky", or is it necessary to continue to hide our strengths and bide our time for "hidden dragons and don't use them"?
In the first half of the year, the steady increase in revenue exceeded 30 billion yuan, and the performance of Shuanghui Development was in line with expectations
On August 15, Shuanghui Development released its 2023 semi-annual report. The report shows that in the first half of the year, with the increase in the scale of hog slaughtering and the gradual commissioning of new projects in the poultry industry, Shuanghui Development's total export sales of meat products were 1.64 million tons, a year-on-year increase of 7.2%. 5.1%, Shuanghui Development achieved operating income of 30.522 billion yuan, a year-on-year increase of 9.15%.
In addition, Shuanghui Development actively adjusted its product structure, effectively implemented "two adjustments and one control", better controlled market conditions, effectively resolved the pressure of rising costs, and achieved net profit growth. Data show that in the first half of the year, the company achieved a net profit of 2.837 billion yuan attributable to shareholders of listed companies, a year-on-year increase of 3.89%.
On the whole, in the new round of down cycle of live pigs and meat products, the company's pig price performance in the first half of 2023 is in line with the prediction at the beginning of the year, and the long-term efforts of diversification and high-end transformation are beginning to show results .
In terms of revenue composition, fresh products accounted for more than half of the revenue, and its revenue contribution and growth rate were both higher than those of the packaged meat business. Data show that in the first half of this year, Shuanghui's fresh products achieved revenue of 15.889 billion yuan, accounting for 45% of total revenue, an increase of 11.73% year-on-year; packaged meat products achieved revenue of 13.692 billion yuan, accounting for 45% of total revenue, a year-on-year increase 3.31%.
Specifically, among fresh products, the production volume of fresh pig products was 831,100 tons, the sales volume was 722,200 tons, and the inventory was 172,800 tons, a year-on-year increase of 14.15%, 6.69%, and -0.97% respectively; The product production volume was 198,000 tons, the sales volume was 114,000 tons, and the inventory volume was 11,000 tons, an increase of 92.23%, 63.79%, and 54.93% year-on-year respectively.
The production volume of packaged meat products was 746,500 tons, the sales volume was 778,400 tons, and the inventory was 7,600 tons, a year-on-year increase of 1.04%, 2.33%, and -7.32% respectively. In terms of growth rate, as the group's new poultry industry projects have been put into production one after another, fresh poultry products have also become one of the driving factors for performance growth in the first half of the year.
In short, the development of Shuanghui is basically good in the first half of the year. However, compared with the peak period, the revenue recovery speed of Shuanghui Development is still relatively slow. The data shows that the company's revenue in the mid-2020 period will be 36.37 billion yuan, the company's revenue in the 2021 mid-term will be 34.91 billion yuan, and the company's revenue in the 2023 mid-term will be 30.52 billion yuan. Compared with the previous level, there is still a gap of about 5 billion yuan. , has not fully recovered to its original level.
In addition, Shuanghui Development's operating costs showed an increase in the first half of the year. Data show that in the first half of this year, Shuanghui Development's operating cost was 25.154 billion yuan, a year-on-year increase of 9.9%, which was slightly higher than the revenue. Among them, the cost of packaged meat products increased by 7.23%, the cost of fresh products increased by 10.57%, and other costs increased by 40.35%.
Based on the above performance, many people in the industry believe that Shuanghui Development, as the industry leader, has entered a "bottleneck period" in its current development. The data shows that the company's revenue began to decline after reaching a peak of 73.9 billion in 2020. The revenue in 2021 will be 66.8 billion, and the revenue in 2022 will be 62.7 billion.
So, how should Shuanghui develop in the future break the existing ceiling and open up new incremental markets?
Behind the explosion of prefabricated dishes, there are dangers everywhere. How can Shuanghui develop both offense and defense?
In recent years, prefabricated dishes have become more and more popular, and there is a lot of room for growth. In order to break through the existing bottleneck and create new profit points, Shuanghui Development launched an offensive on prefabricated dishes.
It is reported that in 2021, Shuanghui Development has established a catering business department to carry out prefabricated dishes related businesses; in 2022, "prefabricated dishes" will be included in the Shuanghui Development Annual Report for the first time; Said that the pre-made vegetable business will become the profit growth point of Shuanghui's new stage.
However, the prepared vegetable industry is still in the early stages of development, and there are two major "gaps".
"Gap" one, the development of the prepared vegetable industry cannot keep up with the growth rate, and the factory capacity cannot keep up with the market demand.
From the perspective of the B-end market, the prefabricated vegetable industry has entered an explosive growth stage due to the continuous entry and increase of various brands and capital, but the industrial foundation of the industry's production end is still not perfect. Some people in the industry said that the pre-prepared vegetable factories at this stage can only meet the basic production needs, and are far from meeting consumers' demand for the production of high-quality pre-prepared vegetables.
The second "gap" is that the consumption scene cannot keep up with the marketing environment, and the product development cannot keep up with the brand building.
Although there are more and more categories and flavors of prepared dishes on the market, showing a trend of diversification, the quality of the products has not seen a leap forward. From the perspective of the C-end market, consumers' awareness of pre-made dishes is still "convenient", and the brand awareness of pre-made dishes is relatively lacking.
In short, at this stage, prefabricated dishes are more "bright sales", and behind the glamor, from production to branding, it can be said to be full of thorns.
Therefore, Shuanghui Development will aim at the "gap" and take the lead in launching an offensive in terms of factory production capacity.
Offensive one, Shuanghui’s development continues to increase its breeding business. While improving the supply chain, it can also provide sufficient, healthy, and quality-guaranteed raw materials for pre-made vegetables to a certain extent.
It is reported that Shuanghui Development has recently issued a report on the non-public offering of shares and a listing announcement. The total amount of funds raised by issuing shares this time is 7 billion yuan. The issuance plan shows that the broiler industrialization production capacity construction project integrates feed production, breeder chicken breeding, chick hatching, commercial chicken breeding, slaughtering and processing, with a total investment of 4.516 billion yuan, and it is planned to use the raised funds to invest 3.33 billion yuan; hog breeding production capacity construction The total investment of the project is 1.257 billion yuan, and it is planned to use the raised funds to invest 990 million yuan.
Shuanghui expects that after the project is put into production, it will form a commercial chicken production capacity of 200 million birds per year, and about 500,000 breeding pigs and live pigs per year, so as to improve the industrial chain. In the future, these projects will also provide sufficient raw materials for the production of prefabricated dishes.
From this point of view, there seems to be traces of Shuanghui's "doubled short-term borrowing" that the market is worried about. Financial report data show that in the first half of the year, the company's short-term borrowings increased from 3.147 billion yuan at the beginning of the year to 6.484 billion yuan, an increase of more than 106%. The proportion of this indicator in total assets also jumped from 8.96% at the beginning of the year to 17.6%.
Offensive 2, Shuanghui Development continues to expand the production capacity of the prefabricated vegetable factory, and build a prefabricated vegetable processing factory with the advantages of specialization, automation and scale.
It is reported that on May 13, 2023, Shuanghui Development stated that the company's prefabricated vegetable production capacity and production base are currently mainly distributed in Henan, Shandong and other places, and at the same time, the third industrial park invested and constructed in Luohe is equipped with specialized The prefabricated vegetable processing plant and related projects are also actively under construction. After it is put into operation, it will expand the company's prefabricated vegetable production capacity and further enhance the company's competitiveness in the prefabricated vegetable business.
As for the "effect" after the construction of the prefabricated vegetable factory, we can see it from the transformation of the company's slaughterhouse. It is reported that by the end of 2021, the intelligent upgrading and transformation project of Shuanghui Luohe Slaughtering Plant with a total investment of 500 million yuan will be completed. After the new project is put into production, it only takes 13 hours for a live pig to be slaughtered, deacidified, and then marketed. In addition, Shuanghui Development has also invested 240 million yuan to upgrade its meat products factory. The upgraded meat production line has a daily production capacity of 200 tons, and the production efficiency is twice that of the original.
It can be seen that in the face of a "blue ocean" of prefabricated dishes, Shuanghui develops "sharpening knives without cutting firewood". Through insight into market demand, it takes the lead in launching an offensive in "factory capacity", hoping to continuously distance itself from other small and medium-sized enterprises.
Then, after laying the "capacity foundation", Shuanghui Development, as a large-scale enterprise that has been struggling in the field of prefabricated vegetables for many years, will it have to protect the "world" that has been laid down?
On the one hand, the development of Shuanghui must keep the advantage of "quality control". In the future, the competition of prepared dishes will be more reflected in the improvement of quality rather than the increase of variety. Therefore, Shuanghui Development can rely on its advantages in digitalization and intelligent factory management to stand out in the field of "high-quality prefabricated dishes".
Taking the slaughtering plant as an example, the intelligent factory of Shuanghui Slaughtering Plant has realized the informatization and intelligent management of the whole process. Among them, the pig AI certificate identification, product intelligent transportation/grading, partition intelligent temperature control system, etc. Means can make the entire production process more energy-efficient, more efficient, safer and more environmentally friendly.
It can be seen that Shuanghui has already accumulated a lot of experience in "quality control" through digital and intelligent factories, which will help it attract more attention in the future, which will become more and more prefabricated vegetables.
On the other hand, Shuanghui's development must keep its "channel" advantage. At present, the domestic prefabricated vegetable market is dominated by B-end supply and catering takeaway, and the market penetration rate of C-end channels is relatively low. Under such market conditions, the channel advantages of Shuanghui's development are highlighted.
In terms of dealers, the financial report data shows that as of the end of June 2023, the company has a total of 21,155 dealers, a net increase of 1,217 compared with the beginning of the year, an increase of 6.10%. Among them, there are 6,503 in the south of the Yangtze River, an increase of 0.63% compared with the beginning of the year, and 14,652 in the north of the Yangtze River, an increase of 8.73% compared with the beginning of the year. It is worth mentioning that JD Supermarket has become one of the fastest-growing channels for the sales of prepared vegetables, and is the core channel for cost-effective and high-quality prepared vegetables. In addition, Shuanghui prefabricated dishes have fully deployed online sales.
To sum up, in the field of prefabricated vegetables, Shuanghui Development must not only maximize its offensive and make up for its shortcomings in production capacity, but also maintain its advantages in quality control and channels, so as to seize a place in the crisis-ridden prefabricated vegetable field.
epilogue
Judging from the financial report, the current main performance of Shuanghui Development, the "ham sausage brother", is still the meat products business. However, the company's overall revenue growth has slowed down, and the management team is facing the risk of lack of success. Many investors worry that Shuanghui Development has become a "performance beast".
However, what is trapped in the iron cage is only one of the growth poles of Shuanghui's development, and new growth poles are breaking through the cage. In the future, with the gradual implementation of production capacity and the blessing of many advantages such as channels and quality control, Shuanghui's development is expected to change from "the first brother of ham sausage" to "the first brother of prefabricated vegetables", creating a new world in the field of prefabricated vegetables.
Author: Winning Buffett's Fate
Source: Songuo Finance