Recently, new hope dairy (hereinafter referred to as “new dairy”, 002946. SZ) handed over its first reply to its “Five-Year Plan”. Data show that last year, the new dairy industry achieved an operating revenue of 8.967 billion yuan, a year-on-year increase of 32.87%; The net profit attributable to the parent company was 312 million yuan, with a year-on-year increase of 15.23%. After excluding the impact of equity incentive, the net profit attributable to the parent company increased by 33.21% year-on-year.
In 2021, the new dairy industry took the “fresh strategy” as the strategic core and achieved high-quality growth, which was much higher than the overall market of the industry. According to the newly disclosed dividend plan for 2021, new dairy plans to distribute a cash dividend of RMB 0.75 (including tax) for every 10 shares to all shareholders based on 867271768 shares, with a total cash dividend of RMB 65.0454 million.
The latest quarterly report released by the company shows that the revenue of the new dairy industry from January to March this year was 2.317 billion yuan, a year-on-year increase of 15.02%; The net profit attributable to the parent company was 43.4545 million yuan, a year-on-year increase of 48.70%; The non net profit deducted by the parent company was 34.7761 million yuan, with a year-on-year increase of 66.97%, which continued to maintain the rapid growth momentum and won a good start for the goal of “doubling in three years and striving to enter the leading ranks of the global dairy industry in five years”.
New products lead the low temperature Market
Data show that last year, the main business of the new dairy industry, “liquid milk and dairy products manufacturing”, had a revenue of 8.374 billion yuan, a year-on-year increase of 32.03%, accounting for 93.39% of the operating revenue. Last year, the revenue of other businesses was 593 million yuan, a year-on-year increase of 45.92%, accounting for 6.61% of the operating revenue.
Among them, the liquid milk business achieved a revenue of 8.301 billion yuan last year, a year-on-year increase of 32.34%, accounting for 92.58% of the operating revenue; The milk powder business achieved a revenue of 73 million yuan, a year-on-year increase of 4.77%, accounting for 0.81% of the operating revenue.
According to Euromonitor data, the sales of fresh milk in China increased by 9.71%, 10.67% and 11.56% year-on-year from 2017 to 2019 respectively. The market scale of low-temperature fresh milk in 2019 has reached 34.3 billion yuan. The compound growth rate from 2018 to 2024 is expected to be 8.9%, higher than the compound annual growth rate of normal temperature milk of 4.2%. In the fierce competition of the dairy industry, the new dairy industry takes low-temperature products as an important direction of the company’s differentiated development.
In May last year, the new dairy industry issued the new dairy industry strategic plan for 2021-2025, upgraded the “fresh strategy” to the “fresh cube strategy”, and established the development goal of “doubling in three years and striving to enter the leading ranks of the global dairy industry in five years”. Xiaoshidai noted that 2021 is a new year for the new dairy industry. Last year, the company successively released a series of new products such as “24-hour platinum full quality milk”, “today’s fresh milk shop”, “live run Zero sugar crystal ball yogurt”, “bubble yogurt” and “Saishang pasture”, which continued to lead the low-temperature market.
The report shows that last year, the overall contribution of new product sales revenue of the new dairy industry exceeded 10%. Among them, “huorun” crystal ball increased by 113% year-on-year in 2021, and “golden 24 hours” increased by 937%; “A2 β- “Casein fresh milk” and other high-end and ultra-high-end low-temperature fresh milk have achieved an increase of about 50%. In the field of low-temperature yogurt, through the application of “three-dimensional sugar control” technology, new dairy launched a series of Zero sugar products last year. Relevant data show that the company’s Zero sugar products increased by more than 150% last year.
According to the annual report, the low temperature business of the new dairy industry accounts for about 60%. According to the monitoring data of third-party institutions, the share of low-temperature fresh milk of the new dairy industry has maintained growth for 12 consecutive months, ranking the third in the country in terms of market share. It is one of the regional dairy enterprises with the largest share increase, and the fresh milk income has increased by 35% year-on-year.
According to the analysis, the new dairy released the “fresh Cube” strategy with an upgraded version of 3.0 last year, which clearly continues to take a clear-cut stand to strengthen the “fresh” and promote the “three-dimensional” from the aspects of categories, channels, brands and users, which is expected to provide growth power for the company to continuously improve the national layout and further tap the fresh value.
Strengthen matrix brand layout
At present, the new dairy industry not only has the core brand “new hope” and several sub brands including “Huaxi”, “Xuelan”, “Sanmu” and “Nanshan”. In recent years, in order to further implement and promote the development of the “fresh Cube” strategy, it has also entered the cross domain subdivision track, infiltrated the Xinxing track, further enriched its nutritional food ecosystem and realized diversified structural growth.
In 2021, after completing the acquisition of “one sour cow” project and advancing into the field of current milk beverage, in order to meet the needs of b-end channels such as tea and coffee, the new dairy expanded and established a “milk seeking” directional supply platform for high-quality raw materials; It also took a stake in the new consumer brand “Yifan plant”, which is “committed to creating more delicious and healthy for young people”, and entered the plant-based health drink track.
At the same time, the new dairy industry has built a high-end brand Asahi vipshop, adopted the circular ecological agriculture mode of production, entered Shanghai and radiated East China. The compound growth rate of operating revenue in the past three years has exceeded 40%. In addition, the company also launched regional characteristic products, and successively launched new products such as happy in Yunnan and Saishang pasture in Ningxia, bringing differentiated experience to consumers. During the reporting period, the growth rate of the company’s high-end white milk increased by nearly 100% year-on-year.
In the upstream, the new dairy industry has always adhered to the business strategy of self owned and controllable milk sources. Xiaoshidai noted that since last year, the new dairy industry has continued to strengthen the construction of its own pasture. By the end of 2021, the company had 13 large-scale and standardized pastures nationwide, with a total stock of more than 43000 cows.
In addition, the new dairy also carries out strategic cooperation with large milk source bases to ensure stable, reliable and high-quality milk source supply while expanding the business scale.
In addition to self construction and strategic cooperation, new dairy also realizes the rapid expansion of upstream resources and downstream business through M & A integration. After investing in modern animal husbandry, at the end of last year, new dairy completed the equity delivery of the acquisition of 5% of the “Australia Asia Investment” project, so as to lock in the long-term supply of high-quality milk sources. The data showed that by the end of last year, the stable milk source provided by the new dairy through the pastures of holding and joint-stock companies had reached about 50% of the total demand.
It is worth mentioning that 2021 is the first full fiscal year after Xiajin dairy entered the new dairy system. The report shows that Xiajin dairy’s operating revenue increased by 18% and net profit increased by more than 20% in 2021. By the end of last year, new dairy had 59 holding subsidiaries, 15 major dairy brands, 16 dairy processing plants and 13 self owned pastures.
After years of layout and development, the new dairy industry continues to move forward to the whole country. The annual report disclosed that last year, the new dairy industry achieved a revenue of 3.613 billion yuan in the southwest, a year-on-year increase of 17.25%; East China achieved a revenue of 2.191 billion yuan, a year-on-year increase of 29.87%; North China achieved a revenue of 865 million yuan, a year-on-year increase of 21.44%; Northwest China achieved a revenue of 1.431 billion yuan, a year-on-year increase of 105.45%.
New dairy said that 2022 is the key year of the three-year doubling strategy. The company will strive to achieve an increase of more than 20% in revenue and further improve the net interest rate. For this year’s development plan, the company said that it would gradually increase investment in the construction of upstream milk sources in a timely and appropriate manner, actively promote new tracks such as tea based materials and plant-based drinks, accelerate the national layout, and gradually build a symbiotic development ecosystem with dairy products as the core.
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