Following yesterday's sharp rise, Yihai International has made another effort.
On March 6, Yihai International (01579HK) once rose more than 16%, and as of **, the stock rose 1421% to 12HK$7 shares.
The company's stock price has been inseparable from Haidilao's opening up of the franchise.
On March 4, Haidilao issued an announcement announcing that it would start to implement the franchise model of Haidilao restaurants to further promote the expansion of the restaurant network with a diversified business model.
As the exclusive supplier of Haidilao hot pot base, Yihai International is expected to benefit from Haidilao Restaurant's decision to open up franchise.
Morgan Stanley said that Haidilao's opening of franchises will help boost the sales growth prospects of Yihai's related parties, although more details about the franchise strategy, such as the speed of store opening and the proportion of existing store conversions, are not expected to be announced until the end of March. The bank believes that Haidilao's launch of the franchise model may become a catalyst for the rise of Yihai International's share price in the short term; However, Yihai International's third-party sales have not yet been identified as a major growth driver in the future.
According to the data, Yihai International, formerly known as Sichuan Haidilao Chengdu Branch, which was established in 2005, produces hot pot base ingredients and is affiliated with the hot pot restaurant of ** Group. Backed by the Haidilao platform, a related party, as well as third-party distributors and retail channels, Yihai International has achieved rapid development in recent years and has become one of the leading enterprises in China's compound condiment industry.
From the perspective of business layout, Yihai International has major product lines such as hot pot seasoning (including hot pot base and hot pot dipping sauce), Chinese compound seasoning and snack food.
In terms of performance, Yihai International's performance has fluctuated significantly in recent years.
From 2014 to 2022, Yihai International's revenue grew by leaps and bounds, with its revenue increasing from 49.8 billion yuan soared all the way to 614.7 billion yuan.
On the other hand, on the profit side, before 2020, the company maintained a year-on-year growth momentum, and achieved a net profit attributable to the parent company of 88.5 billion yuan, a record high.
However, at the beginning of 2021, due to the internal adjustment of the related party's business, the superimposed raw material cost**, the company's own product innovation, the epidemic and other factors, the company entered a period of adjustment. In 2022, the company's net profit attributable to the parent company was only 74.2 billion yuan.
In 2023, the current full-year results have not yet been announced, but they can be glimpsed from the results of the first half of 2023.
In the first half of 2023, Yihai International achieved revenue of 261.6 billion yuan, down 269%；Net profit attributable to the parent company was 35.8 billion yuan, a year-on-year increase of 3598%。
Due to the decline in the cost of raw materials, Yihai International's gross profit margin rebounded. During the period, the company's gross profit margin was 305%, an increase of 2 percentage points year-on-year.
BOCI pointed out that Yihai International, formerly known as Haidilao Branch, has grown into a leader in the polyphony industry. In 2023, the company's first-class chain system will continue to improve, and at the same time, the products, channels, and internal organization will continue to be reformed, and it is expected that the company's fundamentals are expected to return to an upward trend in the future.
Author: Hong Xiaodou.