Xiamen Yanzhiwu Bird's Nest Industry Co., Ltd. *** hereinafter referred to as "Yanzhiwu" or "the Company") is a company specializing in the research and development, production and sales of bird's nest products, and is the largest bird's nest product company in China, with the world's largest bird's nest franchise store network, and the highest bird's nest brand awareness in China. On November 30, Yanzhiwu officially opened the IPO, and the IPO lasted until December 7, and it is expected to land on the Hong Kong stock market on December 12, let's see how the company is qualitative.
According to the prospectus, based on retail sales in 2022, Yanzhiwu is the largest bird's nest product company in China's traceable bird's nest market, with a market share of 140%, and is also the world's largest bird's nest product company, with a market share of 41%, much higher than the 26%。In 2022, in China's bird's nest product market, Yanzhiwu also ranked first in the industry in terms of the number of bird's nest franchise stores and the number of imports certified by the Chinese Academy of Inspection and Sciences. According to the compound annual growth rate from 2020 to 2022, Yanzhiwu is more than 12The growth rate of 0% is ahead of its peers. Overall, Bird's Nest House is a well-deserved number one in the bird's nest industry.
Leading product innovation with R&DOpen a new era of normalized consumption of bird's nest
At present, Yanzhiwu has established industry-leading R&D platforms, including Bird's Nest Research Institute, Bird's Nest Peptide Research Center, Bird's Nest Skin Care Products Research Center, and Peking University Health Science Center-Yanzhiwu Joint Laboratory. As of November 23, 2023, Yanzhiwu has obtained a total of 133 patents, and according to the Frost & Sullivan report, Yanzhiwu ranks first in this industry, far surpassing the second place. On the basis of R&D capabilities, we continue to carry out product R&D and innovation.
At present, the product portfolio mainly includes three product categories: pure bird's nest products, bird's nest + products and + bird's nest products, and in 2022, Yanzhiwu has 250 SKUs, of which 194 pure bird's nest products are in the four major product series. Yanzhiwu adapts to a variety of life scenarios with a wide range of products, meets the diverse needs of consumers, enters the daily life of more consumers, and opens a new era of normalized consumption of bird's nest.
The whole process of product production is controlled to create high-quality bird's nest products
As of December 31, 2022, Yanzhiwu has three production bases, located in Xiamen City, Fujian Province, Songjiang District, Shanghai and Guanghe County, Gansu Province, and as of December 31, 2022, Yanzhiwu has the largest production base of bird's nest products in China in terms of total gross floor area. From the procurement of raw materials to the production and sales of bird's nest products, Yanzhiwu has always insisted on creating products with ingenuity and is committed to providing consumers with high-quality bird's nest products.
Yanzhiwu purchases bird's nest raw materials from Indonesia, Malaysia, Thailand and other countries and regions, and mainly purchases from Indonesia (the world's largest producer of raw material bird's nest), and selects long-term cooperation with ** suppliers to ensure the stability and quality of raw materials. Bird's Nest has also established a bird's nest traceability system, which can track the **, processing process and testing results of each batch of bird's nest to improve the credibility and safety of the product. According to the prospectus, in terms of the purchase volume of imported raw material bird's nest with the traceability label of the Chinese Academy of Inspection and Sciences, Yanzhiwu ranked first for four consecutive years from 2019 to 2022.
Diversified sales channels to accurately reach consumers
Online and offline sales channels are fully covered, and Yanzhiwu has a complete sales network. As of May 31, 2023, Yanzhiwu has a nationwide offline sales network, consisting of 91 self-operated stores and 214 offline dealers, covering 614 dealer stores in China**It has 23 self-operated ** and 13 dealers**, covering mainstream e-commerce and social ** platforms.
Yanzhiwu's stores not only provide product sales, but also provide product experience, consumer education, membership services and other functions, enhancing consumers' purchase confidence and loyalty. Yanzhiwu has also actively expanded online channels, using e-commerce platforms and social networking tools to expand the coverage and influence of products, and improve the sales efficiency and profit margin of products. Yanzhiwu also promotes brand awareness and loyalty through various brand activities such as advertising, endorsements, sponsorships, events, loyalty programs, etc.
For the five months ended May 31, 2023, the number of paid users reached 117,600 and the number of registered users exceeded 1.8 million.
Strong growth in performance and profitability The development trend is positive
In the past three years, the performance of Yanzhiwu has been quite impressive. From 2020 to 2022, its operating income was 130.1 billion yuan, 150.7 billion yuan, 173 billion yuan, a year-on-year increase respectively. 8% with a compound annual growth rate of 153%, net profit was 12.3 billion yuan, 17.2 billion yuan, 20.6 billion yuan, a year-on-year increase respectively. 8% with a compound annual growth rate of 292%, and in the first five months of 2023, its operating income was 78.3 billion yuan, a year-on-year increase of 123% and net profit of 10.1 billion yuan, a year-on-year increase of 200%。It can be seen that the company has maintained a very solid scale growth.
The profitability of Yanzhiwu has also increased year by year, and from 2020 to 2022 and the first five months of 2023, the gross profit margin of Yanzhiwu is: 8% and 519%, net profit margin respectively. 9% and 128%, showing a gradual increase trend. The increase in profitability was mainly due to the improvement of the company's cost management capabilities, the expansion of its product portfolio and the consolidation of its brand position.
From the perspective of the industry, driven by consumers' pursuit of beauty and health, China's bird's nest market has become a fast-growing segment in China's beauty and health market, with a scale of 43 billion yuan in 2022 and a compound annual growth rate of 27 from 2017 to 20222%, and is expected to reach 92.1 billion yuan by 2027, with a compound annual growth rate of 165%。
Among them, the scale of the traceable bird's nest market, which is the main focus of Yanzhiwu, is growing faster. Traceable bird's nest is a bird's nest produced by a company that meets the traceability standards formulated by the Chinese Academy of Inspection and Sciences, and each bird's nest product unit is affixed with the product traceability label of the Chinese Academy of Inspection and Sciences, compared with non-traceable bird's nest, traceable bird's nest is more safe, more in line with regulatory regulations, and more popular with consumers. According to the prospectus, the size of the traceable bird's nest market will reach 17.8 billion yuan in 2022, with a compound annual growth rate of 48 from 2017 to 20221%, and is expected to reach 53.6 billion yuan by 2027, with a compound annual growth rate of 247%, and the proportion of the scale in the bird's nest market will also increase to 582%。
With such a rapidly growing industry potential, Yanzhiwu, as an industry leader, has great hope to maintain sustained high growth, and its growth is undoubted. With the expansion of the company's scale and brand effect, the company is expected to continue to increase its market share. In 2022, Yanzhiwu's market share of traceable bird's nest in China reached 14%, and if it can expand its market share to 20% in 2027, its revenue scale will reach 107200 million yuan, with a compound annual growth rate of 44 in the next five years0%, based on a net profit margin of 12%, the net profit will reach 12900 million yuan, with a compound annual growth rate of 44 in the next five years3%, which has very high growth potential. Therefore, the listing of Yanzhiwu is also expected to obtain a higher valuation, if calculated according to 20 times PE (TTM), the company's valuation will reach 44500 million RMB. Looking ahead, if the company can increase its market share under the premise of industry growth, its valuation will continue to increase.