Red Star Capital Bureau reported on January 31 that Royal Group (002329SZ) released its 2023 performance forecast yesterday evening, showing that the company's net profit attributable to the parent company in 2023 is expected to be 70 million to 90 million yuan, a year-on-year increase of 48219%–648.53%。
For the net profit attributable to the parent company of the substantial **, the royal group said that the company actively explores the market, Guangxi, Guizhou, Hunan, Sichuan subsidiaries have achieved double-digit growth in revenue, the company's products have entered 15 provinces of infant system stores and 10 provinces of PetroChina "Kunlun hospitality" system, at the same time, the company seized the opportunity of diversification of the market demand for new tea drinks, launched a variety of "out of the circle" buffalo milk tea, coffee products. On the other hand, the company actively develops distributed and residential photovoltaic EPC business, which provides effective support for the company's profitability.
Screenshot from Royal Group's performance forecast.
However, the Red Star Capital Bureau noticed that the Royal Group was able to achieve a substantial increase in net profit, mainly related to its "selling".
According to the performance forecast of Royal Group, the impact of the company's overall non-recurring profit and loss on the net profit attributable to the parent company in 2023 is expected to be 21.7 billion yuan, of which, in May 2023, Royal Group transferred 32 each of Yunnan Royal's Lysil Dairy and Yunnan Royal's Lysil Intelligent Dairy8996% equity, the impact of investment income expected to be formed at that time on the net profit attributable to the parent company for the current period was about 19.7 billion yuan.
It is worth noting that Royal Group's net profit after deducting non-recurring gains and losses is still negative, at -1$4.7 billion to -12.7 billion yuan, a year-on-year increase of 1884% to 3763%。It can be seen that Royal Group has not yet entered the right track of business profitability.
Royal Group started with the dairy industry, and later developed film and television, information services, and photovoltaics across borders, but it was also deeply troubled by diversification. Since 2018, Royal Group has suffered more losses and less profits. From 2018 to 2022, its cumulative net loss was 116.5 billion yuan.
In August 2023, Royal Group announced that its future development focus will focus on its main businesses: dairy and photovoltaics.
But the Royal Group's refocus on the dairy industry may be too late.
As the "first share of buffalo milk", Royal Group is currently facing a more crowded track. In the past ten years of Royal Group's cross-border film and television and information services, buffalo milk brands such as Befei, Lechun, Grandma Liu next door, Zuojiang, and Yi Xiaowan have emerged. According to Tmall's buffalo milk hot list on January 31 (sorted by sales volume and turnover in the past 7 days), the top three are Baifei cheese and Grandma Liu's products next door, and the buffalo milk products of Royal Group did not enter the top 10 and ranked 20th.
Dairy analyst Song Liang believes that on the one hand, the product promotion of the Royal Group is high, and there is no gradual and gradual promotion, on the other hand, the product pricing is too high, resulting in low market acceptance in the early stage, and at the same time, the brand has not insisted on doing it for a long time, and the funds have been diverted to other businesses halfway, which are the reasons why the large single products of the Royal Dairy have not been successful for so many years.
As of noon on January 31, the stock price of Royal Group was **681% to 465 yuan share.
Red Star News reporter Zhang Luxi Yu Yao.
Edited by Yang Cheng.
*Red Star News, Newspaper Rewards! ）