Sell ​​water to become the richest man in China? “Moutai in the water” hit the dark market today, up 110%! This is nature’s money printing machine.

Original title: Net worth is super Ma Huateng and Ma Yun selling water to become the richest man in China? “Moutai in the water” is now trading on the dark market up 110%, this is nature’s money printing machine

Summary

[¿Vender agua para convertirse en el hombre más rico de China? “Moutai in the water” salió al mercado oscuro hoy, ¡subiendo un 110%! Esta es la máquina de imprimir dinero de la naturaleza]Nongfu Spring’s share price soared more than 100% in dark trading the day before the IPO on September 7. China’s largest bottled faucet company, Nongfu Spring, will be listed on the Hong Kong Stock Exchange on September 8. The company is highly sought after by the market. In the dark market, on September 7, it opened at HK $ 38, which is HK $ 16.5 higher than the offer price of HK $ 21.5. The open range reached 76.7%. At 4pm on September 7, the increase was over 110% and the total market value exceeded 500 billion Hong Kong dollars. (China corridor)

　　Nongfu SpringIn dark market trading the day before the IPO on September 7, the share price soared more than 100%.

China’s largest bottled tapthe companyNongfu SpringIt will be listed on the Hong Kong Stock Exchange on September 8. The company is highly sought after by the market. In dark market trading on September 7, it opened at 38 Hong Kong dollars, which was 16.5 Hong Kong dollars higher than the offer price of 21.5 Hong Kong dollars, and the opening range reached 76.7%. At 4 p.m. on September 7, the increase exceeded 110% and the total market value exceeded HK $ 500 billion.

　　Nongfu SpringMaximumshareholderZhong Sui Sui is also an A-share listed companyWantai BioThe largest shareholder. If the spring of Nongfu followsWantai BioThe level of dilution of shares after listing is settled by dilution to 75% of the shares. After Zhong Sui Sui’s listing on Nongfu Spring, his total personal value will reach 450 billion Hong Kong dollars, or 58 billion US dollars, based on a black market price of 500 billion yuan. His personal wealth will likely surpass Ma Huateng and Ma Yun to become the richest man in China.

　　Selling water is too profitable and the funds are crazy for cash cows

China’s largest bottled faucet company, Nongfu Spring, will be listed on the Hong Kong Stock Exchange on September 8. The company is highly sought after by the market. In the dark market, on September 7, opened at 38 yuan, 16.5 yuan more than the sale price. The rate reached 76.7%, as of 4 pm on September 7, the increase was more than 109% and the total market value exceeded 500,000 million Hong Kong dollars.

Nongfu Spring was originally called “Zhejiang Qiandaohu Yangshengtang Drinking Water Co., Ltd.” and its headquarters is in Hangzhou, Zhejiang. It was established on September 26, 1996. The company previously launchedadSaid its Hong Kong IPOPricesIt’s HK $ 21.5 per share, grossing HK $ 8.149 billion. Nongfu Spring said that the Hong Kong IPO for retail investors received 1,148.3 times the subscription.BankThe locked capital reaches HK $ 677.7 billion, making it the “king of frozen capital” in the history of Hong Kong stock IPOs.

　　The capital’s attention to Nongfu Spring stems from the company’s strong profitability, and the company has also become a Chinese leader in the beverage industry.

Before 2011, when it came to drinking water, Taiwan, ChinabusinessMaster Kong has become the bottled tap in mainland China, but since 2011, Nongfu Spring has surpassed Master Kong. Especially in the field of natural drinking water, it has become the absolute leader in the market. Data shows that at present, Nongfu Spring has gained 57.3% of the market share in the field of natural drinking water.

Although Nongfu Spring’s most important business is bottled water, the company is gradually diversifying its business. According to public information, Nongfu Spring also has four series of tea drinks (π tea, oriental leaves), functional drinks (shout, energy vitamin water), juice (water soluble C100, Nongfu Orchard, NFC juice and 17.5 °) . Dozens ofproductAnd other drinks. According to a report, from 2012 to 2019, Nongfu Spring held the number one market share in China’s bottled drinking water market for eight consecutive years. In terms of retail sales in 2019, Nongfu Spring had the highest market share in tea drinks, functional drinks and juice drinks. The top three in the Chinese market.

Furthermore, the purchasing power of Nongfu Spring is truly extraordinary. According to the information disclosure, Nongfu Spring’s bottled drinking waterinterest rateUp to 60.2%, the gross of the tea drink bottleinterest rateIt is also as high as 59.7%, the gross of functional beverage productsinterest rateAs high as 50.9%, the gross profit margin of fruit juice beverage products reached 34.7%, and the gross profit margin of Nongfu Spring in 2019 was 55.4%.

The above information means that for every yuan of sales revenue, Nongfu Spring can generate around 60 mao of profit. Nongfu Spring can be said to be a typical source of income. The prospectus shows that from 2017 to 2019, Nongfu Spring achieved revenue of 17.49 billion yuan, 20.48 billion yuan, and 24.02 billion yuan, respectively.Net profit3.39 billion yuan, 361 million yuan, and 4.95 billion yuan. The Nongfu Spring fundraiser will be mainly used forBrandConstruction and constant improvementDistributionAmplitude andSingle storeSales, further expansion of production capacity, increased investment in basic capacity building and exploration of market opportunities abroad.

　　Sell ​​water to become the richest man in China?

It is worth mentioning that Nongfu Spring is also a successful wealth building opportunity. Currently, Zhong Suansui owns approximately 87.44% of Nongfu Spring, which includes approximately 17.86% of direct capital and 69.58% of indirect capital through Yangshengtang.

Also, in April 2020, Zhong Suisui absolutely controls another company.Wantai BioIt also achieved an initial public offering in A shares. At the close of September 7, the total market value of Wantai Biotech reached 85.4 billion yuan. Taking into account that Zhong Suansui owned 75.15% of the shares after the Wantai Bio listing, the corresponding wealth is about 64 billion yuan, about 72.6 billion Hong Kong dollars.

If Nongfu Spring is liquidated with 75% equity dilution in accordance with Wantai Biotech’s equity dilution level after listing, Zhong Sui Sui’s total personal value may reach HK $ 450 billion, or US $ 58 billion in personal wealth after being listed in Nongfu Spring. .

This means that Zhong Suisui will become the richest man in China after listing. From now on, if calculated based on the holdings of Ma Huateng and Ma Yun, and regardless of the next Ant Group listing, Ma Huateng and Ma Yun’s personal wealth is low. At 55 billion US dollars.

After the Nongfu Spring listing, how long it can finally stay above the HK $ 500 billion market value depends on the company’s progress.PerformanceThe growth and confidence of institutional investors in the company, although a leader in the beverage and bottled water industry, the HK $ 500 billion valuation is not cheap at all. At the close of September 7, the market value of Tingyi listed on the Hong Kong Stock Exchange was only HK $ 84.3 billion, and the market value of Uni-President was 31, 1 billion Hong Kong dollars.price, 1 Nongfu Spring equals 6 Master Kong.

　　However, institutional investors are still more confident in the future space of Nongfu Spring.

　　Tianfeng ValuesawareInvestigation reportThe packaged drinking water market is believed to have entered a prosperous period and the future space is huge. In the last ten years,Urbanization rateAs the demand for drinking water increases in convenient scenarios, the bottled drinking water industry shows a medium to high speed development trend. While production continues to increase, the size of the market also maintains steady growth. From 2014 to 2019, retail sales of packaged drinking water in China increased from 119.6 billion yuan to 2017 billion, with a CAGR of 11%. According to Frost & Sullivan calculations, the bottled water market is expected to maintain a compound growth rate of 10.8% over the next five years, and its market share is expected to exceed 300 billion yuan in 2024. Furthermore, after years of development, the share of the drinking water industry in soft drinks has increased to 20.34% (2019), replacing carbonated drinks as the largest sub-industry in the soft drink industry. In the future, the two main factors supporting the development of the industry will be driven by the volume and price of the increase in the urbanization rate and per capita disposable income.

Huajin Securities believes that competition in the soft drink industry is fierce, and the success of Nongfu Spring is based on many aspects. In terms of products, the company continues to focus on health, paying attention to differences in taste and bottle design, accurately predicting and understanding consumer trends; in Marketing, Ingenious Company AdvertisingCreativityBuilding on the product itself, he has created classics like “Nongfu Spring is a little sweet” and “Nature’s Porter”, has deep knowledge of event marketing, and has accumulated “healthy, natural and safe” products for a long time.Brand; In terms of channels, the company drastically reformed the dealer system in 2016, supported dealers with independent business capabilities to grow stronger and stronger, stimulated subjective initiative from front-line dealers and sellers, and finally ushered in of a new round. Fast growth. The company’s earnings per share are forecast to be 0.44, 0.56 and 0.66 yuan in 2020-2022.Net assetsThe returns are 42.7%, 41.2% and 37.1%, respectively, and buy-A recommendations are given.

(Article source:BrokerageChina)

(Responsible editor: DF380)