Or with the help of the concept of prefabricated dishes, the share price of Huifa Food ushered in a wave of rise, but on the whole, the company's fundamentals are not ideal.
Dong Lin, a researcher at the Investment Times.
In 10 days, it won 9 price limits, so that Shandong Huifa Food Co., Ltd. is referred to as Huifa Food, 603536SH) for a while, the scenery is unlimited.
On the morning of December 6, Huifa Food's intraday price limit, the stock price hit 2022 yuan shares (calculated according to the previous weighting, the same below) high, a new high since listing. Prior to this, the stock gained a daily limit for 8 consecutive trading days from November 24 to December 5. However, on the afternoon of December 6, the share price of Huifa Food fell sharply, and finally fell to the limit**, staged the "sky floor"**On December 7, the stock rose again, and recorded 9 daily limits in 10 trading days, with a cumulative increase of 11225%。
Researchers from the Investment Times noticed that since the beginning of this year, the share price of Huifa Food has been fluctuating between 6 yuan and 8 yuan shares, and it was not until the end of November that the stock rose sharply. To this end, from November 28th to December 6th, the company issued a number of abnormal trading fluctuations and **transaction risk reminder announcements, indicating that the company's fundamentals have not undergone major changes, and there is no material information that should be disclosed but has not been disclosed.
Or with the help of the concept of prefabricated dishes, the share price of Huifa Food ushered in a wave of rise, but on the whole, the company's fundamentals are not ideal. According to the financial report, the net profit attributable to the parent company in 2021 and 2022 will lose 13.8 billion yuan, 1After 2 billion yuan, in the first three quarters of this year, the company continued to lose money, with a loss of 03 billion yuan. At the same time, Huifa Foods is also facing greater financial pressure. As of the end of September 2023, the company's monetary funds were 25 billion yuan, corresponding to short-term borrowings of 54.8 billion yuan, with a cash short-term debt ratio of 046, the asset-liability ratio is 6720%。
Next, how will the company improve profitability and debt levels?In terms of the development of the prefabricated food industry, what are the layout and breakthroughs of the company?In response to the above questions, the researcher of "Investment Times" sent an email communication outline to the relevant departments of Huifa Food, but has not received a reply from the company as of press time.
The trend of Huifa Food's stock price since 2023(Yuan shares).
Data**: windThe stock price has risen sharply and the market value has doubled
Founded in 2005, Huifa Foods was listed on the Shanghai ** Stock Exchange in June 2017. The company is mainly engaged in the research and development, production and sales of quick-frozen frozen foods such as pill products, sausage products, fried products, string products, and dish products. In 2021, Huifa Foods started its strategic transformation and increased its investment in the research, production and marketing of prefabricated dishes and the first-chain services of healthy ingredients.
Recently, with the help of prefabricated dishes, the share price of Huifa Food began to soar, and the company's total market value increased from 20 to 20 within 10 days9.7 billion yuan rose to 44The high point of 9.7 billion yuan is equivalent to rebuilding a company.
Behind the soaring stock price, Huifa Food has also frequently issued the "** Announcement on Abnormal Fluctuations in Trading". According to the announcement released on December 5, the company's cumulative range since November 24, 2023 is 11447%, * short-term gains were significantly higher than the Shanghai Composite Index, and there was an overheating of market sentiment. However, there has been no major change in the company's fundamentals, there are no major events affecting the serious abnormal fluctuations of the company's ** transactions, and there is no material information that should be disclosed but has not been disclosed.
Huifa Food also disclosed in the announcement that as of December 5, 2023, Hui Zengyu, the actual controller of the company, and Hui Xiping, the person acting in concert, Shandong Huifa Investment, held a total of 14.9 billion shares, accounting for 60 percent of the company's total share capital97%, and the remaining external shares outstanding accounted for 3903%, which is relatively small, and there may be a risk of irrational hype. In addition, some of the company's shares held by Hui Zengyu are in a pledged state, with a cumulative pledge of 373380,000 shares, accounting for 73 of its shares38%, accounting for 15% of the company's total share capital26%。
Researchers from the Investment Times noticed that four years ago, Huifa Foods also had the same stock price performance. From November 28, 2019 to January 2, 2020, the company's stock price suddenly soared, with a cumulative increase of 137% in 25 trading days. It hit its highest point of 17 on January 3, 2020After 78 yuan shares, the share price of Huifa Food began to decline rapidly, and in the next 15 trading days, it accumulated **5060%。
For the abnormal fluctuation of stock prices, the regulatory authorities have been paying close attention to it for a long time. On the evening of December 8, the Shanghai Stock Exchange issued an announcement saying that from December 4 to December 8, the Shanghai Stock Exchange took written warnings and other regulatory measures against 40 abnormal trading behaviors such as lifting and suppressing and false declarations. The Shanghai Stock Exchange also said that it will focus on monitoring the ** of serious abnormal fluctuations such as Huifa Food. As of Dec. 13**, Huifa Food's share price was 1798 yuan shares, the latest market capitalization is 439.9 billion yuan.
Continued losses Debt is under pressure
Behind the soaring stock price, what are the fundamentals of Huifa Food?Researchers from the Investment Times noted that in the nearly three years of the transformation to prefabricated dishes, Huifa Food has continued to lose money.
According to the financial report, in 2021 and 2022, the net profit loss attributable to the parent company of Huifa Food will be 13.8 billion yuan, 1200 million yuan, the total loss in the two years has exceeded the total net profit attributable to the parent company in the previous six years. In the first three quarters of this year, the company achieved revenue of 130.4 billion yuan, a year-on-year increase of 1608%；The net profit attributable to the parent company was 03 billion yuan, although the loss narrowed by 60 compared with the same period last year62%, but it is still not out of the loss.
Huifa Food said that due to the changes in the market environment and changes in consumption patterns, the revenue and efficiency of the company's first-class chain business and terminal direct sales business declined, and the amortization of equity incentive expenses of some major raw materials, and the increase in sales and marketing expenses led to performance losses.
However, during the same period, unlike the net profit loss of Huifa Food, the comparable company Sanquan Foods (002216SZ) and Yasui Foods (603345.)SH) are profitable, and Haixin Food (002702SZ) turned from profit to loss.
Wind data shows that from 2021 to 2022 and the first three quarters of 2023, Sanquan Foods achieved a net profit attributable to the parent company of 64.1 billion yuan, 80.1 billion yuan, 55.2 billion yuan;The net profit attributable to the parent company of Yasui Food was 68.2 billion yuan, 110.1 billion yuan, 112.2 billion yuan;The net profit attributable to the parent company of Haixin Food was -34.43 million yuan, 63.22 million yuan and 3.67 million yuan respectively.
It is worth noting that due to the continuous loss of profits and poor cash flow performance, the debt pressure of Huifa Food has intensified. As of the end of the third quarter of 2023, the company's net cash flow from operating activities was 02.7 billion yuan, the company's monetary funds are 2500 million yuan, short-term borrowings of 54.8 billion yuan, with a cash short-term debt ratio of 046, the asset-liability ratio is 6720%。
Key accounting data of Huifa Foods for the third quarter of 2023(Yuan).
Data**: Company earnings report.
Competition in the prefabricated food track has intensifiedAccording to the official website, Huifa Food has independently developed more than 2,000 prefabricated dishes, including clean vegetables (meat), material packages, semi-finished dishes, and finished products, and finally formed three series of frozen prefabricated dishes, cold and fresh prefabricated dishes, and room temperature prefabricated dishes.
Researchers from the Investment Times noted that in the financial report, the revenue of Huifa Food's finished prefabricated dishes was mainly attributed to the Chinese cuisine business. From 2021 to 2022 and the first three quarters of 2023, the company's Chinese cuisine revenue was 15.4 billion yuan, 17.8 billion yuan, 16.2 billion yuan, accounting for the proportion of total revenue. 38%, corresponding to a growth rate of %.
While the revenue of prefabricated dishes has not improved, the competition in the entire prefabricated food track continues to intensify. For this upcoming trillion market, all companies are laying out.
On June 9, 2023, Huifa Food announced that the company plans to invest in the establishment of a joint venture with Linxia Kairun Agriculture and Animal Husbandry Investment and Development Group *** hereinafter referred to as Kairun Agriculture and Animal Husbandry), with Huifa Food holding 49% of the shares and Kairun Agriculture and Animal Husbandry holding 51% of the shares. The follow-up of the new company will mainly focus on the company's main business, especially the prefabricated food industry chain channels, consolidate and enhance the company's position and competitiveness in the prefabricated food industry, and gradually promote the construction of the company's catering food and beverage food chain.
On the same day, Anjing Food deliberated and passed the "Proposal on Foreign Investment in the Construction of Sichuan Anjing Phase III Project", the company plans to invest about 700 million yuan to build a new production line, storage center and comprehensive building with an annual output of 100,000 quick-frozen food (quick-frozen dishes, quick-frozen hot pot products, etc.). At the end of the same month, Haixin Food also announced that the company planned to 4500 million yuan for the intensive processing of aquatic products and quick-frozen dish products private placement fund-raising project, the China Securities Regulatory Commission has agreed to the registration approval.