Mandarin** is the most non-standard Speaking of Dongpeng special drink, it is estimated that no one does not know. The rapid growth of Dongpeng Special Drink in recent years can be described as breathtaking, especially in the past 3 years, when the performance of consumer enterprises is generally sluggish, it has also achieved a good performance of revenue growth of more than 100%.
Brief introduction of the company's business.
Dongpeng Beverage was established very early, in 1994. The history of the company is also more tortuous and legendary, and I plan to analyze it in detail in the future.
The company's main products include Dongpeng Special Drink, Dongpeng Big Coffee, Dongpeng 0 Sugar Special Drink, Dongpeng Jiaqi, flavored beverages, tea drinks, etc. Among them, the most important is Dongpeng Special Drink, which accounts for more than 90% of the revenue and is a super single product. Dongpeng Special Drink relies on the ultra-affordable cost performance compared with Red Bull (about half of Red Bull in the same specification**) and the unique ashtray cap design, which makes it widely loved among drivers.
The latest financial performance indicators.
Although Dongpeng Beverage is also relying on the continuous development of Dongpeng Special Drink, which is different from the six walnuts, the market space and scale of Dongpeng Special Drink are far from the ceiling, and the performance is growing rapidly.
After the 3rd quarter report of 2023 came out, I also took a look at it:
The total operating income was 864.1 billion yuan, a year-on-year increase of 3005%, of which the third quarter increased by 35% year-on-year17%, up from 2414% and 29 in the second quarter96%。Why did the growth rate of other companies decline in the third quarter but Dongpeng grew against the trend, is it because the consumption downgrade can't afford to drink Red Bull has changed to Dongpeng special drink?
Net profit 165.6 billion yuan, a year-on-year increase of 4205%, Dongpeng's net profit growth rate has always been higher than the revenue growth rate, the reason is that with the improvement of the company's popularity, the proportion of marketing expenses in revenue has been declining, for example, the annual revenue in 2018 was 303.8 billion yuan, sales expenses of 96.9 billion yuan, with an income of 86 in the first three quarters of this year4.1 billion yuan, basically 3 times that of 2018, but the sales expenses did not increase by 200% to 3 billion yuan, but only 142.1 billion yuan, an increase of less than 50%, which is why the profit growth rate has been higher than the revenue growth rate. It also confirms from the side that the company's brand power is constantly increasing, and there is no need to rely too much on marketing to drive revenue growth.
Gross margin was 4252%, an increase of 077 percentage points, the gross profit margin decreased by five or six percentage points compared with before 2021, and I looked at the 2022 annual report, mainly due to the increase in gross profit margin due to the high level of bottle raw materials and sugar, which has also been confirmed in other beverage companies such as Six Walnuts.
Net profit margin was 1916%, an increase of 1 over the same period last year62 percentage points, the net profit margin is the highest level in the three quarterly reports in recent years.
Return on equity 2975%, an increase of 339 percentage points;
The number of inventory turnover days decreased by 5 compared to the same period last year04 days, which is also the best level of the three quarterly reports in recent years.
Overall, the company's financial indicators are as good as ever, and I personally think this is one of the reasons why the company's stock price is so strong.
Major assets and liabilities.
As of the end of the third quarter, the company's main assets and liabilities are as follows:
Monetary funds 545.8 billion yuan, trading financial assets 136.8 billion yuan, non-current assets due within one year67.9 billion yuan (mostly wealth management), 5Some of the 7.4 billion yuan is wealth management, with a total of more than 7.5 billion yuan in cash assets, and customer receivables are only 07.5 billion yuan, for a volume with an income of nearly 9 billion yuan, is a very good level, mainly because the company and Shuanghui are basically settled after the payment.
Inventory 26.6 billion yuan, down 16 percent from the same period last year63%, while the revenue growth is more than 30%, the inventory can be maintained at a lower level, which shows the improvement of the company's management efficiency. Fixed assets and construction in progress totaled 317.2 billion yuan, an increase of 6 over the same period last year8.9 billion yuan, mainly the company's national layout, increase production capacity and improve storage capacity throughout the country, perhaps many people do not understand why the national construction base, directly from the headquarters of the delivery is not OK, in fact, the beverage industry has a relatively high cost that is the cost of transportation, the construction of production bases in various core markets can reduce this part of the expenditure, like Wahaha, Master Kong are doing this. The company's book short-term borrowings 433.7 billion yuan, long-term borrowings 08.6 billion yuan, an increase of 19 over the same period last year4 billion yuan, the reason why the company has so many funds on the books to borrow money, I personally feel that on the one hand, the company has paid dividends to most of the net profit in the past 2 years, and there are fewer funds that can be used at any time, on the other hand, the company's current project budget under construction is about 3.1 billion yuan, and only more than 800 million yuan has been invested in the semi-annual report, and there is a funding gap of more than 2 billion yuan, and the current borrowing interest rate is not high, so I simply borrowed some more funds to complete the expansion of production capacity as soon as possible. Payments due to ** merchants6300 million yuan, an increase of 20 over last year40%, a new high for the three quarters in recent years, further confirms that the company's funds are indeed not abundant, so the account period is extended. Contract liabilities (customer advances) as of the end of the third quarter191.6 billion yuan, an increase of 42 over the same period last year60%, which exceeds the revenue growth rate, reflecting the enthusiasm of dealers to get goods.
Brand moat.
Personally, I think Dongpeng Special Drink has the following moats:
1. High level of marketing There is no shortage of good products in the FMCG industry, but good marketing and channels. Lin Muqin, chairman of Dongpeng Special Drink, has been deeply involved in this industry for twenty or thirty years, whether it is when Red Bull abandons the classic advertising slogan, he seized the opportunity to play "tired and sleepy to drink Dongpeng Special Drink", or the classic ashtray cap design, and creatively put forward the ** activity of scanning the code to receive cash and adding 1 yuan to redeem when the sales are poor, all of which reflect the company's superb marketing skills. 2. The ultimate cost-effective Dongpeng special drink of the same specification of the company** is basically about half of Red Bull, and even in some big promotion activities, the 250ml Dongpeng special drink is less than 2 yuan a box, think about the terminal retail price of Red Bull as high as 6 yuan bottle, and consumers who pay attention to cost performance must choose Dongpeng special drink.
Dividends and Valuation.
Dongpeng Beverage currently has a market capitalization of 7216.2 billion yuan, with a net profit of 27.5 billion yuan, due to the special fourth quarter of last year, I estimate that the growth rate in the fourth quarter of this year will be higher, we calculate according to the 40% growth rate, the profit in the fourth quarter is about 38.5 billion yuan, the whole year in 20The net profit is about 400 million yuan, and the valuation is 35About 37 times, in the near term, it is a relatively high valuation, the reason why the market gives such a high valuation, on the one hand, the company can always grow against the trend, on the other hand, there is a lot of market space, you must know that Red Bull can sell more than 200 billion a year, if the Red Bull and other vitamin drink markets can be occupied in the future, it will be able to increase the revenue on the current basis several times, in other words, from the perspective of 3 or even 5 years, if Dongpeng can maintain the current high growth rate, the current market value can not be regarded as overestimated.
The company's cash dividend ratio in the past 2 years is 7807%, the dividend rate is still OK, according to the current stock price of 18040 yuan shares, based on the dividend of 20 yuan for 10 shares last year, the dividend yield is nearly 111%, the dividend yield is not high, and at this stage, it is mainly to make money from the growth of corporate earnings.
Disclaimer: The above analysis is a personal opinion, and any views or opinions in the article may be full of biases and errors of the author. The article mentions that ** is at risk of being cut in half. Please insist on independent thinking, and do not rely on the author's judgment or opinion to make buying and selling decisions, otherwise you will bear the consequences!