On January 30, Pien Tze Huang (600436) announced its 2023 annual performance report. According to the announcement data, Pien Tze Huang achieved a total operating income of 100 for the whole year3.5 billion yuan, a year-on-year increase of 1542%；Net profit attributable to the parent company 278.4 billion yuan, a year-on-year increase of 1259%。
Some analysts pointed out that judging from the annual performance, Pien Tze Huang can still achieve steady growth. However, judging from the valuation level, Pien Tze Huang's performance growth may be difficult to match the high valuation.
In fact, in order to maintain performance growth, Pien Tze Huang has repeatedly announced price increases since its listing in 2003.
In 2005, under the background of the ex-factory price and retail price increased by 5 yuan, Pien Tze Huang's revenue increased by 65% year-on-year2%；After raising prices in 2020, the company's revenue in 2021 increased by 23% year-on-year20%, net profit increased by 45% year-on-year49%。
According to the statistics of the Southwest ** medical team, from 2004 to 2020, the price of Pien Tze Huang lozenge products was raised 19 times. Among these 19 price increases, Pien Tze Huang has at least 3 rounds of price increase cycles: the first price increase cycle was from 2004 to 2008, and the driving force for the price increase was that the raw material musk was controlled by the State Forestry Administration for the first time, and all medicines containing natural musk instantly became scarce, so the company raised prices accordingly. The second price increase cycle is from 2009 to 2014, and the driving force of the price increase is the *** of musk and bezoar, but it has little impact on profits; The third price increase cycle is 2016-2017, the reason is also raw materials, but the price increase basically did not affect sales, and the company's profit growth is obvious.
May 2023 is the largest adjustment in Pien Tze Huang's history, but judging from the performance, the tried-and-true price increase strategy has shown signs of failure.
At that time, Pien Tze Huang announced that in view of the main raw materials and labor costs of the company's Pien Tze Huang products, it was decided that from the date of the announcement, the company's leading product Pien Tze Huang lozenges in the domestic market retail ** will be raised from 590 yuan to 760 yuan, and the corresponding increase will be about 170 yuan; Overseas markets*** will be raised by about $35 accordingly.
According to this calculation, the retail ** increase in the domestic market of Pien Tze Huang lozenges was 288%。And in 2023, the price will be raised by 28On the basis of 8%, the company's annual revenue and net profit increased by only 1542% and 1259%。From the perspective of a single quarter, Pien Tze Huang's revenue in the fourth quarter was 243.5 billion, a year-on-year increase of 117%；Net profit 46.9 billion, a year-on-year increase of only 9%. The significant increase in the unit price of the product has deviated significantly from the growth rate of performance, or it may indicate that the sales volume of Pien Tze Huang has declined significantly.
Shi Lichen, founder of Dingchen Consulting, once told the observer.com that there are too many substitutes with similar indications to Pien Tze Huang in the industry, and there is nothing special about the product itself. But in recent years, Pien Tze Huang has been very hot, and there are many consumers hoarding goods, and the value of the product itself and the ** purchased by consumers are completely unequal.
Based on consideration, as early as 2014, Pien Tze Huang proposed the transformation strategy of "one core and two wings", focusing on Pien Tze Huang and focusing on cosmetics, daily chemical business, health care products and health food business.
It can be seen that the operation of the cosmetics sector is still not good. In 2021, the revenue of this segment will be 84.1 billion, with a growth rate of -705%, 2022 revenue 63.4 billion, with a growth rate of -2461%, which is negative growth for two consecutive years. In the first half of 2023, Pien Tze Huang's cosmetics revenue will continue to decline, only 27.3 billion yuan. In the short term, it is difficult for the sector to support Pien Tze Huang's "second growth curve".
Although the operating performance is not satisfactory, the spin-off of Pien Tze Huang's cosmetics sector and listing is still progressing steadily.
As of February 1**, Pien Tze Huang reported 191 per share21 yuan, compared with the day before **411%, with a total market capitalization of 1153600 million.
This article is an exclusive manuscript of the Observer.com, and it is not allowed to be unauthorized and shall not be allowed.