China Food

Will the century old wufangzhai hit the “first stock of zongzi” be a “meat stick”?



“ 
is easy to form but difficult to transform.
 ”
Finally, the capital market will usher in the first share of zongzi.
Recently, Zhejiang Wufangzhai Industrial Co., Ltd. (hereinafter referred to as “wufangzhai”) opened its subscription and planned to land on the main board of Shanghai Stock Exchange.
In fact, the 101 year old wufangzhai’s listing was not smooth. He had changed sponsors frequently. Finally, Zhejiang securities took over the baton from Guangfa Securities and CICC. In January 2022, the IPO of wufangzhai was approved, which also became the first IPO project successfully sponsored by Zhejiang securities this year.
The issuing price of wufangzhai is 34.32 yuan, and the issuing P / E ratio is 22.99 times, which is lower than the average static P / E ratio of the industry in the latest month (33.47 times) and the average p / E ratio of comparable companies (27.49 times). This public offering is 25.1858 million shares, accounting for 25% of the total share capital after the issuance. According to this calculation, its market value at the time of listing is about 3.4 billion yuan, which belongs to small cap stocks. Recently, the market is in a good mood of innovation, adding the good luck of the Mid Autumn Festival and other consumption seasons. With a hundred year halo, it may have a positive boost on the first day of listing.
As we all know, it is not easy for the time-honored brands to survive. Listing is just a brand-new start, and it is still challenging to find a strong way to survive.
The halo of a century old brand
As a traditional food, zongzi has passed through a long history and is now very popular. People always argue whether it is salty or sweet.
According to public data, it is estimated that the market scale of zongzi in China will increase to 10.291 billion yuan by 2024, and the annual compound growth rate from 2020 to 2024 is expected to be 7%.
Wufangzhai began in 1921. The “wufangzhai zongzi” sold by Zhang Jinquan, a businessman from Lanxi, Zhejiang Province, is its prototype, and the name “Wufang” means “Wugu Fangxin”. Because his zongzi is “sticky but not paste, fat but not greasy, fragrant and delicious, and salty and sweet”, it gradually becomes popular.
Image source: Network
In 1956, the public-private joint venture “Rongji”, “Heji” and “Qingji” three “wufangzhai” and “xiangxiangzhai” were merged into one “Jiaxing wufangzhai zongzi shop”. After the changes of the times, Zhejiang Wufangzhai Industrial Co., Ltd. was established after restructuring in 1998 and began to sell to the national market. Wufangzhai is one of the first batch of “Chinese time-honored” enterprises in China. In 2011, wufangzhai zongzi production technology was listed in the national intangible cultural heritage protection list. In 2004, it became a well-known trademark in China. Now it is the head brand in the zongzi industry.
At present, wufangzhai is mainly engaged in food research and development, production and sales with glutinous rice food as the core. It has formed a product group dominated by zongzi and integrating mooncakes, dumplings, cakes, egg products and other rice products. It has two production bases in Jiaxing and Chengdu. By the end of 2021, the company had achieved the goal through direct operation, cooperative operation and
Wufangzhai expects that the operating revenue from January to September 2022 will be about 2.269 billion yuan to 2.317 billion yuan, a year-on-year decrease of about 13.14% to 14.96%; The net profit attributable to the shareholders of the parent company was about 228 million yuan to 230 million yuan, a year-on-year decrease of about 18.83% to 19.31%.  
It has to be said that in addition to the impact of the epidemic, raw materials and other factors, wufangzhai has reached the ceiling in the business of selling zongzi.
As we all know, the entry threshold of zongzi is low, the number of entrants is scattered and the concentration is not high, but the market competition is full. At the same time, as a traditional seasonal food, its consumption scene is relatively limited. At present, wufangzhai is a leading brand, and it is difficult to make a big breakthrough in the operation and development of its main business.
It is not safe to put all eggs in one basket, and seeking diversified development is the way out.
In fact, wufangzhai is also aware of this. In recent years, it has taken zongzi as the starting point, made full use of the Chinese festival scene, developed diversified glutinous rice food, and even expanded its daily sales products, trying to enrich the product matrix and create a high-value product line.
This IPO is intended to raise 762 million yuan, which is mainly used for wufangzhai phase III intelligent food workshop construction project, wufangzhai digital industry smart park construction project, wufangzhai R & D center and informatization upgrading construction project, wufangzhai Chengdu production base upgrading and reconstruction project, etc.
After the project is put into operation, wufangzhai can increase the production capacity of 100 million high-end zongzi series products, 43.5 million baked foods (moon cakes, mung bean cakes, egg yolk cakes) and 13.04 million bags of quick-frozen foods (dumplings, Shaomai, wonton).
Young people win the world?
In addition to rich product lines, wufangzhai, as a century old brand, is adapting to the times and trying to embrace young people.
Public data show that from the early days of the founding of the people’s Republic of China to the present, the number of time-honored enterprises in China has dropped from more than 16000 to more than 1600, and the survival rate is only 10%.
It is not easy for time-honored brands to survive and live well in this new era.
Nowadays, consumers’ resistance to time-honored brands mainly comes from the word “old”. The word “old” here means that it does not meet the market demand and development trend, has no innovation gene, is not attractive enough, and is not “grounded”.
If wufangzhai wants to gain more consumer stickiness, it is bound to solve these pain points.
On the one hand, it began digital transformation, especially to e-commerce. In 2009, it set up an e-commerce team, opened a new mode of “touching the net”, and further expanded its sales channels.
At present, it has established an omni channel marketing network covering commerce, chain stores and e-commerce throughout the country. It can be found that wufangzhai is mainly directly operated, accounting for more than 60%, which is relatively stable. Among them, the revenue from e-commerce sector has increased year by year. Since 2020, the revenue of this sector has exceeded the retail channel, making a lot of contributions.
Will the century old wufangzhai hit the “first stock of zongzi” be a “meat stick”?
2022年上半年,五芳斋的营收为18.09亿元,同比下降15.32%;归母净利润为2.42亿元,同比下降20.78%,业绩的下滑主要是疫情所致,事实上,五芳斋主要的生产基地位于浙江省嘉兴市,且销售区域主要集中在华东区域,而疫情的反复导致生产和销售均受到一定程度的冲击。
五芳斋预计2022年1-9 月营业收入约为 22.69亿元至 23.17亿元,同比下降约 13.14%至 14.96%;归属于母公司股东的净利润约为 2.28亿元至 2.30亿元,同比下降约 18.83%至 19.31%。 
不得不说,除了疫情、原材料等因素的影响,五芳斋在卖粽子的生意上已经触及到了天花板。
众所周知,粽子的准入门槛较低,入局者多且分散,集中度不高,但市场竞争充分。同时,其作为传统节令食品,消费场景相对有限。目前五芳斋已是头部品牌,在主业的经营发展上很难再有较大的突破。
把鸡蛋都放在一个篮子里并不保险,寻求多元化发展才是出路。
事实上,五芳斋也意识到了这一点,近年来它以粽子为起点,充分利用中华节令场景,开发多样化的糯米食品,甚至拓展日销产品,试图丰富产品矩阵,打造高价值产品线。
本次IPO拟募资7.62亿元,主要用于五芳斋三期智能食品车间建设项目、五芳斋数字产业智慧园建设项目、五芳斋研发中心及信息化升级建设项目、五芳斋成都生产基地升级改造项目等。
本项目达产后,五芳斋可实现新增年产 10,000 万只高端粽子系列产品、4,350万只烘焙类食品(月饼、绿豆糕、蛋黄酥)、1,304 万袋速冻类食品(汤圆、烧 卖、馄饨)等的生产能力。
得年轻人得天下?
除了丰富产品线,五芳斋作为百年老字号,正在适应时代,试图拥抱年轻人。
公开数据显示,从建国初期到如今,我国的老字号企业由 16000余家降至1600 余家,存活率仅有10%。
老字号想要在这个新时代活下来、活得好,并不容易。
如今,消费者对老字号的抵触情绪其实主要来自于这个“老”字,这里说的“老”意味着:不符合市场需求和发展趋势,没有创新基因,不够吸引眼球,不够“接地气”。
五芳斋想要获得更多的消费黏性,势必要解决这些痛点。
一方面,它开始数字化转型,尤其向电商发力,2009年组建了电商团队,开启了“触网”新模式,进一步扩展了销售渠道。
目前它建立起了覆盖全国的商贸、连锁门店、电商的全渠道营销网络。可以发现,五芳斋以直营为主,这一占比超六成,较为稳定,而在其中,来自电商板块的收入逐年增长,2020年起这一板块的收入占比超过零售渠道,贡献颇多。
除去电商的起飞,它也开始重视营销的输出,利用互联网赋能,试图打破固有标签,与消费者建立起新的有效沟通连接。
五芳斋重视线上内容营销,近三年在广告宣传方面的投入共计近1.75亿元,推出了数支广告短片,包括《寻找李小芬》、《招待所》、《过桥记》等,此前还蹭了元宇宙的热度,上线了科幻广告片,被人们戏称为”五芳影业”。同时,它也与各类品牌进行创意联名,进一步扩大品牌影响力。
图片来源:B站
可以看出,五芳斋算是鼓足干劲,想要取悦年轻一代,在营销、渠道等模式上创新不断,也取得了一定的市场效果,不过它依旧需要找到能为自身带来真正活力的业务增长点。
另外,报告期内,五芳斋的流动比率和速动比率均低于可比公司的均值,资产负债率(合并)逐年增长,从2019年的38.52%增至2021年的50.83%,高于可比公司的均值,在偿债能力上存在一定的弱势。
结语
俗话说得好,逆水行舟,不进则退。新时代下,这些老字号若是依旧固步自封,那么生存空间只会越来越狭窄。若能借着“国潮”的发展红利,主动思变,积极转型,才能获取更为广阔的发展空间。五芳斋成功上市后,未来的路依旧很长,如何给予投资者业绩增长的确定性还需打上一个问号。
作者:董旺仔;来源:格隆汇新股(ID:ipopress),转载已获得授权。
媒体商务合作:Amy(微信号:13701559246);
转载授权及媒体合作:Jennifer(微信号:15151447934);
加入社群:Cherry(微信号:15262433826)。

相关阅读



食品人都“在看”

Similar Posts

Leave a Reply

Your email address will not be published.