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original title:Mustard fulingWhy did it sell 2 billion?
Source: Beijing Commercial Daily
There are complicated trading experiences and huge profits hidden in the little Fuling mustard tuber. On February 26, the performance bulletin released by Fuling mustard tuber showed that in 2020, the total operating income of Fuling mustard tuber was 2.273 million yuan, an increase of 14.23% year-on-year. From the perspective of industry insiders, with the continued rise in product prices, the performance of Fuling mustard has improved and is one step closer to its sales target of ten billion yuan. However, the volume of the mustard industry is not large, there are endless mustard brands on the market, and the future development of Fuling mustard is not easy.
Raising prices to boost performance?
On February 26, the yield bulletin released by Fuling mustard tuber showed that in 2020, the total operating income of Fuling mustard tuber was 2.273 million yuan, an increase of 14.23% year-on-year; operating profit was 915 million yuan, an increase of 27.28% year-on-year. At the end of the reporting period, the total assets and net assets of Fuling mustard were 3,969 million yuan and 3,411 million yuan, an increase of 18.07% and 18.82%, respectively, over the beginning of the year.
It is understood that the Fuling mustard tuber was established in 1988. Its predecessor was the Sichuan Fuling mustard tuber group. Since its establishment, it has been mainly engaged in the development, production and sale of mustard products, soy mustard sauce and other snacks. The product is Wujiang Series Mustard brand. On November 23, 2010, Fuling Mustard became the first listed company in the mustard tuber industry.
According to Bao Yuezhong, a new retail expert in fast-moving consumer goods, due to the impact of the epidemic, some consumption scenarios and consumption patterns have changed, and the domestic consumer market is hot. The fuling mustard tuber has been affected by this. and its performance has increased.
However, some people in the industry said that Fuling mustard’s increased performance is not unrelated to its price increase. Since 2008, Fuling mustard is reported to have made at least 12 increases in the price of the product. In 2012, the Fuling mustard tuber optimized the product structure, eliminating some low-end products and reducing volume and increasing prices. In June 2020, mustard pickled cabbage with Fuling mustard again raised prices in disguise, reducing the size of its main product from 80g per bag to 70g.
Raise 3.3 billion to expand production capacity
For the last ten years since its listing, the Fuling mustard tuber has continued to “close the market.” At the beginning of its listing, Fuling Mustard used the funds raised to expand production capacity and upgrade technology. In 2013, Fuling Mustard initially used the city-level dealer model to irradiate markets at the county level to increase participation of cities at the county level. However, due to the small size of the Fuling mustard at the time, the cost of the investment could not be sustained, and the canal was sinking.
In 2015, Fuling Zhacai began entering the kimchi market after acquiring Huitong Food. According to Fuling Mustard’s 2016 annual report, Huitong Food made a profit of 5.91 million yuan in 2016. Among them, kimchi sales increased significantly from 21.14 million yuan in 2015 to 55.81 million yuan. in 2016. In 2019, Fuling mustard pickle business achieved revenue of 127 million yuan. Also, due to the limited popularity of Huitong kimchi, Fuling Zhacai uses Huitong Food’s kimchi technology to launch Wujiang brand kimchi and Xiafancai.
The ambition of the Fuling mustard tuber is not limited to the mustard tuber and kimchi market. In 2018, Fuling Zhacai plans to issue shares to raise funds to acquire Sichuan Hengxing and Sichuan Weizhinong, and enter the field of bean paste. However, the final acquisition was unsuccessful.
The acquisition was unsuccessful and Fuling Mustard is looking to expand production capacity. In 2020, the Fuling mustard tuber plans to raise 3.3 billion yuan. Among them, 2.95 billion yuan was used for the Wujiang Fuling Mustard Green and Smart Production Base (Phase I), and 350 million yuan was used for the Wujiang Fuling Mustard Mustard Smart Information System Project.
In addition, the Fuling mustard tuber will accelerate the expansion of sauces, Sichuan-style compound seasonings, and fruit and vegetable snacks, and further expand the product line. In Bao Yuezhong’s view, from the perspective of the whole industry, there is still room for development in the mustard consumption scene, such as snail noodles, convenience foods and other products. Additionally, the Fuling mustard tuber may also develop some new areas around the industry.
Nowadays, with the development of the national economy and the improvement of the consumption level of residents, people’s consumption needs and consumption scenarios are becoming more and more diversified, and the mustard tuber is also expanding a variety of new edible features, such as leisure snacks.
The opponent is watching
Perhaps the good performance has given the Fuling mustard tuber hope. At the Third China Fuling Mustard Tuber Industry Exhibition, Chongqing Fuling, Fuling Mustard Tuber announced that it will take 3-5 years to reach the annual sales target of more than 10 billion yuan and further expand the size. of mustard tubers market.
Chinese food industry analyst Zhu Danpeng told Beijing Business Daily that the Fuling mustard tuber is currently facing a double top. First, there is still a certain gap between the Fuling mustard tuber and the sales target of 10 billion yuan; Second, because the total market size of the mustard tuber industry is not large, although the Fuling mustard tuber is a leading company, the number of participants is increasing, and the challenges it faces are more complicated.
According to Euromonitor data, the sales volume of China’s mustard industry has increased from 480,000 tons in 2008 to 820,000 tons in 2019, and the market size of packaged mustard has increased from 3,779 million yuan in 2013 to 6,688. million yuan in 2019. Among them, the market scale of packaged mustard tubers in 2019 increased by 11.67% compared to 2018. It is estimated that the retail sales of packaged mustard tubers industry will be He expects them to reach 9.931 billion yuan by 2024.
The scale of the market continues to expand and the number of companies entering the market is also increasing. In the mustard tubers sales area in a supermarket in Haidian District, Beijing, you can see that there are many brands of mustard tubers. From the point of view of the store area, the Fuling mustard tuber does not dominate. Data shows that Fuling mustard’s market share in 2019 was 36.41%, and its main competitors Yuquan, Liubiju, Gaofuji and Weijute accounted for 11.5%, 9.58%, 9% and 5.75. %, respectively. Compared to 2008, the mentioned brands, including Fuling mustard, have increased their market share to varying degrees.
Regarding future development plans, a reporter from the Beijing Commercial Daily contacted and interviewed the Fuling mustard tuber, but as of press time, the other party did not respond.
Beijing Business Daily Reporter Qian Yu Bai Yang
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