Text|Produced by Chu Yan|The world's wealth.
The prefabricated dishes that are frequently on the hot search have also pushed up Haixin Food (002702SZ).
On December 5, the market fell sharply and broke through 3,000 points again, but Haixin Food closed the price limit all day. After the opening of the next day, the stock price hit a new high.
Is it because of Haixin Food's outstanding performance?According to the financial report, the company's net profit in the first three quarters fell by more than ninety.
But the company's share price suddenly rose sharply, from October 23 to 496 yuan shares started, and in just over a month, the stock price rose by nearly 50%. Considering that during this period, ** was extremely weak, it is not an exaggeration to say that the company's stock price is "speculated".
So, what's the mystery here?
Haixin Food was established in April 2005 and listed in October 2012. The company is mainly engaged in the production and sales of quick-frozen fish and meat products, quick-frozen rice and flour products, quick-frozen dish products, room temperature fish and meat products. Its core products are quick-frozen surimi products.
According to its official website, the company mainly has 8 production bases in Jiangsu, Zhejiang and Shandong, and has 7 sales subsidiaries across the country.
Although the company is famous for being the "first stock of quick-frozen fish and meat products" on the **, it is not so "glamorous" when it comes to performance.
According to the Oriental Wealth Network, soon after the company went public, its performance fluctuated, and even lost money from time to time. In 2015, 2017 and 2021, the company's losses were 39.51 million yuan, 27.28 million yuan, and 34.43 million yuan respectively, totaling more than 100 million yuan.
From the perspective of growth rate, Haixin Food's net profit attributable to the parent company has shown negative growth in the five years of 2014, 2015, 2017, 2019, and 2021, and the growth rate has declined respectively.
That is to say, after the company went public, nearly half of the time, Haixin Food's net profit attributable to the parent company showed negative growth.
Moreover, Haixin Food's performance this year can be called a "Waterloo".
In the first three quarters of 2023, Haixin Food's net profit attributable to the parent company was only about 3.67 million yuan, a year-on-year decrease of 93%. On a quarterly basis, the decline was 29% year-on-year in the first quarter, and it quickly widened to a decline of 94% in the first half of the year, and also fell by 92% in the third quarter.
It can be seen that Haixin food this year.
The deterioration in the second and third quarters was very serious, and although the fourth quarter has not yet been disclosed, there is no reason for optimism for a while.
What is the reason for this embarrassing situation?
Haixin Food said in the third quarterly report that the decline in net profit was mainly due to the increase in production costs and the discount of the supermarket systemThe initial investment in seafood has not yet started, resulting in a decline in gross profit marginThere are three major reasons for the increase in promotion costs.
In the first three quarters, Haixin Food's operating costs were as high as about 900 million yuan, and its total operating income was only about 1.1 billion yuan, accounting for about 81% of the cost.
Although the third quarterly report of Haixin Food did not disclose the operating costs in more detail, from the semi-annual report, it was mainly due to the increase in the cost of special channels, that is, direct first-class products to large chain restaurants, enterprises and institutions, as well as export business.
In the first half of the year, the comprehensive gross profit margin of Haixin Food was 1852%, down 362 percentage points. Looking further, the gross profit margin of the company's various channels, various products, and various regions has declined to a greater or lesser extent.
At the same time, as of the end of the third quarter, Haixin Food's inventory was about 4700 million yuan, an increase of more than 100 million yuan from the beginning of the year, and the year-on-year growth rate reached about 45%, far exceeding the revenue growth rate.
Haixin Food said that the increase in inventory was mainly due to the inclusion of its holding subsidiary Fujian Dongou in the scope of consolidation and strategic inventory.
As a food company, raw materials account for a large part of Haixin Food's inventory, and the risk of asset impairment caused by a large inventory is inevitable, and will eventually eat into profits.
Regardless of the performance, at the very least, I hope that the company's above explanations and statements are true and accurate. In this regard, the company has a "lesson from the past". Before 2019, the financial report released by Haixin Food frequently received inquiries from regulatory authorities.
Specifically, the 2014, 2015, 2017 and 2018 annual reports, of which the 2015 semi-annual report and the 2017 semi-annual report also received inquiry letters.
Although the net profit has fallen sharply and the gross profit margin has declined, Haixin Food is still expanding vigorously.
First of all, the company is targeting the "high-end" pre-made food sector.
At the beginning of April this year, Haixin Food announced that it planned to acquire a total of 51% of the equity of Fujian Dongou Food, and increase its capital, so as to lay out the abalone prefabricated food business and expand the field of high-end marine aquatic prefabricated dishes, which is also the focus of the company's new development strategy.
Secondly, a large increase in the intensive processing of aquatic products and quick-frozen dishes.
At the end of August, Haixin Food's application for capital increase to its wholly-owned subsidiary, Fujian Changheng Food, hereinafter referred to as "Fujian Changheng"), was approved, which will be used for the "deep processing of aquatic products and quick-frozen dish products project", with a total investment of about 700 million yuan.
In addition, some projects of Haixin Food are also being promoted. The company said in the semi-annual report that the new project with an annual output of 100,000 tons of quick-frozen fish and meat products in Changheng (Lianjiang Factory) in Fujian Province has been completed by 95%, and the main body of the building has been completed, and it has entered the construction stage of internal decoration and supporting facilities and equipment, and is expected to be put into operation in the second half of the year.
The second phase of the expansion project of Dongshan Tengxin Food*** Dongshan Factory, mainly to optimize and increase the production capacity of snack food at room temperature, has completed the main structure building, basically completed the approval of fire protection materials, and is expected to complete the acceptance in the third quarter of 2023.
Overall, Haixin Food's posture is probably like this: on the one hand, the performance in the first three quarters of this year has declined sharply, and on the other hand, it is expanding with great fanfare this year.
So, how to understand the "weird" strength of Haixin Food's stock price these days?On the one hand, this is related to the overall strength of the prefabricated vegetable sector, and on the other hand, it can only be said that there are funds to "speculate expectations".
What to expect?For example, the large-scale expansion of Haixin Food can bring real growth in next year's performance.
However, it is still unknown whether the market demand will expand after the company's expansion, or whether it will lead to high inventories and more serious overcapacity as usual.
On December 6, the company's stock price soared by a huge amount, rising by 9 in the morning, and plummeting in the afternoon, closing down nearly 3 at the end of the session, and the dynamic price-earnings ratio was still as high as 768 times. It is hoped that Haixin Food can support the stock price with performance growth, instead of being short-lived after the stock price soars like the previous times, trapping a large number of investors.
end - Disclaimer: The information in this article does not constitute investment advice.