China Food

Today, chairman Aoyou responded to several hot spots! Including the rumor of milk powder price limit and the new national standard

Following the latest semi annual report of steady growth, chairman Aoyou continued to send “reassurance” to investors today.

Xiaoshidai noticed that at the performance meeting held for analysts today, Yan Weibin, chairman of Aoyou, spent a lot of time responding to recent industry hotspots, including price limit rumors, what milk powder companies are doing under the new national standard, etc. In addition, the top management of Aoyou also talked about the key work of the first three powder preparation for impact infants.

After today’s meeting, Aoyou once rose more than 5% and closed up 4.62% to HK $7.920 per share.

There is little possibility of material price limit and centralized purchase

Affected by the recent three child policy, milk powder price limit and centralized purchase rumors, the price of milk powder stocks has fluctuated like a roller coaster recently.

At today’s investor meeting, Wang Weihua, global chief financial officer of Aoyou, said that the current share price of Aoyou is mainly affected by two aspects: one is the general recent performance of Hong Kong stock market, and the other is that some investors have short-term concerns about the infant milk powder industry.

“We believe that Aoyou’s share price is seriously undervalued. When the stock price was more than HK $10 in June, many executives were still exercising their rights. Therefore, under the condition of compliance, we will repurchase. ” He said.

Xiaoshidai noticed that at the beginning of the meeting, Yan Weibin also spent a lot of time analyzing many changes in the baby powder industry one by one, hoping to dispel investors’ doubts.

Yan Weibin, chairman of Aoyou (data picture)

First of all, for the rumors of milk powder price limit and centralized purchase, Yan Weibin believes that the introduction of relevant measures is unlikely.

“First, infant powder is just needed. Second, its price band is very wide. There are no restrictions and obstacles to buy products with high quality and low price. Therefore, it is not necessary to limit the price.” “From a policy perspective, we believe that China’s infant milk powder will still follow the development direction of market-oriented principles,” he said

In Yan Weibin’s view, China’s infant powder enterprises also have many opportunities at present.

For example, the three child policy“ As you can see, the government is still trying its best to reduce the cost of childcare, avoid social entanglement, and let young people bear less burden on their children. We believe that policies will eventually work, and we should also believe in the government’s decision-making. ” He said.

In addition, the new national standard for milk powder will also benefit companies with deep R & D and production accumulation. Yan Weibin mentioned that after the introduction of the new national standard, many milk powder companies are upgrading or registering new formulas according to the new standard“ The registration policy is still adopted in a more strict way. I believe that this is good for companies that do a good job in R & D and production management, and the regulatory environment is still conducive to the head enterprises to deal with competition “.

Sheep milk powder returns to growth

After reading the latest conference, let’s review the first half report card of Aoyou.

According to the financial report of Aoyou, the revenue during the reporting period was 4.271 billion yuan (RMB, the same below), a year-on-year increase of 10.7%. Among them, the business income of private brand formula was 3.741 billion yuan, a year-on-year increase of 9.7%. In the first half of the year, the gross profit was 2.136 billion yuan, a year-on-year increase of 5.6%; The profit attributable to equity holders of the company was 594 million yuan, a year-on-year increase of 45.3%.

In the first half of the year, milk powder became the “biggest contributor” to the growth of Aoyou. According to the financial report, Aoyou’s own brand milk powder recorded a revenue of 2.053 billion yuan, a year-on-year increase of 16.9%.

Driven by the high-end trend of milk powder, hiponokai Biology (including hiponokai 1897, neolac Youlan and other brands) positioned in the ultra-high-end market recorded a sales revenue of 1.374 billion yuan, a year-on-year increase of 18.9%. The reorganized and integrated nengliduo business unit recorded a sales revenue of 563 million yuan, a year-on-year increase of 37.0%.

Xiaoshidai noticed that after the previous channel adjustment, jiabeiaite sheep milk powder also successfully returned to growth.

Aoyou financial report shows that during the announcement period, jiabeiaite business recorded a sales revenue of 1.688 billion yuan, a year-on-year increase of 2.0%. In the second quarter, jiabeiaite’s revenue in China increased by 17.8% year-on-year.

According to Nielsen’s research report quoted by Aoyou, jiabeiaite’s sales volume has accounted for more than 60% of China’s total import of infant formula sheep milk powder for three consecutive years since 2018. In the international market, jiabeiaite is also exported to more than 60 countries and regions.

Today, jiabeiaite is also continuously improving its international layout. The company said that since entering the Mexican market in 2020, jiabeiaite’s local demand has increased month by month, with eye-catching performance. At present, Aoyou is still preparing to introduce jiabeiaite into the Southeast Asian market by the end of this year.

Aoyou Netherlands factory

Snack generation noted that as Aoyou’s traditional advantageous business, Yan Weibin also responded to the problem of intensified market competition today.

“We are worried about what will happen when more and more manufacturers of sheep milk powder come in. We think this shows that the sheep milk powder track continues to grow. We are also very confident in the new competitive environment, because the key factors for the success of sheep milk powder are scientific research, supply chain ability, market network coverage, especially customer service ability. In these areas, we still have full advantages. ” He said.

In addition to the milk powder business, Aoyou’s nutrition sector has also achieved steady growth. During the announcement period, Aoyou nutrition business recorded an income of about 68 million yuan, a year-on-year increase of 3.5%. Excluding factors such as the sharp decline in purchasing sales caused by the epidemic, the sales of Aoyou nutrition business in China was about 66 million yuan, a year-on-year increase of 33.3%.

Considering that the import logistics and purchasing channels are still facing great uncertainty under the epidemic situation, Aoyou has also launched a new mode of localized production of nutrition products.

The company said that in order to solve the supply chain constraints and more effectively support the development of nutrition business in the Chinese market, Aoyou has transferred some products of nutrition care from Australia to China for production. At present, a total of 15 series of nutritional products have completed relevant technical inspection and trial production during the reporting period.

While further promoting localization, Aoyou is also vigorously expanding its nutrition portfolio. It is reported that during the reporting period, Aoyou yunyangbang listed new products such as NC sufuwei probiotics, NC Xunqing probiotics, NC attenuated probiotics and NC sufumin probiotics supported by the domestic supply chain, which can meet the health needs of consumers to improve their intestines, stomach, joints and skin.

“You can’t just lie on the credit book of the past”

Looking forward to the future, Yan Weibin said at today’s meeting that Aoyou still focuses on coke goat milk powder and milk powder, and simultaneously cultivate nutrition as an important new growth point in the next few years.

Specifically, he pointed out that the work includes continuing to strengthen R & D, market network layout, supply chain optimization and management platform improvement.

“Despite the pressure of the external situation, the company’s management team is still doing a good job in all aspects in accordance with the established strategies to ensure that the objectives and tasks can be reasonably completed this year and achieve steady growth in the coming years.” Yan Weibin said.

As introduced by the snack generation, Aoyou’s previous guidance for 2021 is that the annual revenue growth will not be less than 15%, and the market share will enter the top three in China’s infant powder preparation in 2023. According to the announcement of Aoyou semi annual report, according to different market reports, the market share of the group’s infant formula ranked fifth in China in 2020, accounting for 6.3% of the market share.

In view of how to strive for more market share, Li Yimin, vice president of Aoyou China and general manager of jiabeiait, said at today’s meeting that Aoyou will continue to consolidate the original advantageous channels and enter the original system with strong foreign investment.

Li Yimin, vice president of Aoyou China and general manager of jiabeiaite (data picture)

Yan Weibin added that Aoyou should continue to vigorously improve consumer awareness“ Infant powder is not only a high threshold FMCG, but also a special FMCG. Cultivating brand loyalty needs to be done for a long time. Consumers will change a batch in three years. Although it may be better after having two or three children, no company can sleep on the past brand credit book, so you can’t harvest consumers without developing new customers and serving the market. ” He said.

Xiaoshidai noticed that in the first half of this year, Aoyou continued to increase its communication investment, and its brands “appeared” in many popular dramas or variety shows, such as “redundant son-in-law”, “yulouchun”, “new life in drama”, “ace to ace”, etc.

Aoyou said in the announcement that it is believed that the competition in the infant formula market will remain fierce in the next one to two years and the market will continue to integrate“ The company is full of confidence in its advantages in R & D, supply chain, team and marketing resources. It will continue to overcome market uncertainty with strategic certainty, strive to achieve sustainable business growth, ensure proper planning, invest sufficient resources to meet the new national standard and maintain the group’s market leadership “.

Pay attention to “snack generation” (wechat: foodinc) “and reply to” Aoyou “to see the wonderful news.

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