Leading enterprises with high gross margin Product volume prices continue to rise The condiment industry will maintain high-speed growth

The two major condiments industry on behalf of the enterprise Haitian Taste Industry and Bohai International recently released the 2019 annual report, the two brands in 2019 gross margin of 47.2%, 38.3%, respectively, continue to maintain a high level.
Bohai Securities analysis, in the past decade, the condiment industry has maintained a high industry growth rate, in the "volume" and "price" of the dual impact of the industry will continue to maintain a high business climate.
gross margin was at the forefront of haitian taste industry in 2019 to achieve operating income of 19.797 billion yuan, up 16.22% YoY, and net profit attributable to the mother was 5.353 billion yuan, up 22.64% YoY.
47.2 per cent on the gross margin of our main business.
International achieved operating income of RMB4,283 million in 2019, up 59.7% YoY, while net profit attributable to parents was RMB719 million, up 38.8% YoY.
margin of the main business was 38.3 per cent.
said its gross margin fell from 38.7 percent in 2018 to 38.3 percent in 2019, mainly due to a significant increase in sales of convenience fast food products with lower gross margins as a percentage of total revenue over the same period last year.
Although haitian taste industry revenue and net profit both increased, but in the total raw material costs (direct materials), the enterprise last year generated this amount of 8,789 million yuan, an increase of 18.72 percent over 2018.
changes, Haitian Taste said in its earnings report: "This is mainly due to the increase in the cost of material procurement during the reporting period."
" Haitian taste industry said that the company's overall gross margin of products decreased by 0.83 percentage points year-on-year, due to rising procurement costs and the increase in the proportion of oil.
will step up efforts to control procurement costs, through intelligent manufacturing to the core business chain of production and marketing value contribution and strengthen lean production and cost management, to promote overall operational efficiency and cost decline.
, the gross margin of both companies remained at a high level, with the gross margin of haitian taste industry comparable to that of the wine industry.
the first three quarters of 2019, the liquor industry's gross margin reached 76.86 percent, followed by wine, other liquors, yellow wine, beer, flavored fermentations and soft drinks, with gross margins of 55.61 percent, 54.22 percent, 41.00 percent, 40.77 percent, 40.42 percent and 40.3 percent, respectively, according to Caixin Securities.
to the third quarter of 2019, there were 650 A-share listed companies with gross margins of more than 47%, accounting for less than a fifth, according to Tonghuashun Data.
performance of the net interest rate is not the same from the annual report operating data, haitian flavor industry soy sauce, soy sauce, sauce three categories, as well as the country's major sectors of the market have maintained steady development.
, soy sauce achieved revenue of 11.629 billion yuan, up 13.6% YoY, and soy sauce achieved revenue of 3.490 billion yuan, up 22.21% YoY, and flavored sauce achieved revenue of 2.291 billion yuan, up 9.52% YoY.
haitian taste industry, this is related to the company by accelerating the network sinking, strengthen brand communication construction, so that the number and quality of the network to achieve simultaneous improvement and other factors.
Bohai International's main products include hot pot seasonings, Chinese compound seasonings and convenient fast food and other categories, distributors, e-commerce and catering customers for third-party sales of the main channels.
, the company and undersea fishing generated annual sales revenue of 1.663 billion yuan, an increase of 41.4% year-on-year.
points of product, the company's 65.7% of revenue from hot pot seasonings (2.81 billion yuan), year-on-year growth rate of 44%, convenient fast food, Chinese compound seasonings for the company's high growth of the main reason, especially convenient Fast Food (23.3%) achieved revenue of 1 billion yuan in 2019, up 122% YoY, while Chinese composite seasonings (9.2%) achieved revenue of 390 million yuan, up 55% YoY.
the same condiment industry, the two companies' net interest rates for 2019 are out of the way.
International fell from 20.4% in 2018 to 18.6% in 2019, while the overall net profit margin for Haitian Taste was 27.06%, up 1.42 percentage points year-on-year.
Huaxin Securities said that Haitian taste industry in 2019 to achieve the double development of scale and efficiency, net interest rate to a new high, competitiveness has been further enhanced, mainly due to the overall sales growth.
In terms of cost control, Haitian taste industry sales costs decreased by 3.27% YoY, the company strengthened the cost output management, the dealer's self-raising ratio increased resulting in a corresponding decrease in freight costs, while the management cost rate remained at a better level of 1.5%;
Dongxing Securities Research Report believes that Bohai International's product channels are currently in the development period, and haitian taste industry to soy sauce started, has been extended to soy sauce, soybean sauce, wine and other categories, more abundant categories.
Bohai International's net interest rate lags behind the sea taste industry, but Bohai International positioning composite condiments sub-circuit, with the company's development and business expansion, Bohai International's ability to enhance is expected to drive the increase in the return on net assets.
industry to develop stable condiment industry oil, salt, sauce, vinegar, etc. is the most basic rigid demand.
the development of the catering industry, the development of the food processing industry and the upgrading of consumption have become the main factors driving the development of the industry.
china Condiments Association statistics show that the condiment industry's operating income is now more than 300 billion yuan.
variety of condiments industry, a wide variety of strong demand, stable and prosperous development.
haitian taste industry judgment, condiment industry is in the product segmentation, market concentration of the growth stage.
condiment enterprises with scientific research, technology, equipment, technology, product quality is more stable, product technology content is increasing day by day.
next few years, brand companies will develop more new products to meet the growing demand for cooking, the industry will continue to maintain a stable and healthy development under the influence of Chinese lip dividends, economic development and other aspects.
Bohai International in recent years continue to add code research and development capabilities, to ensure that every year there are new products stable export market.
company mainly implement the "product project system", can be independently proposed by employees and group research and development, employees (especially front-line employees) have a high understanding of market preferences, can better develop best-selling products.
strong incentive, the company in 2019 launched a total of 42 new products, including 8 Chinese composite seasoning products, 7 hot pot base products.
Bohai International believes that with the further development of supply-side reform, the economic structure continues to optimize, residents' income growth faster than economic growth, total household consumption has steadily increased, online retail growth and proportion continued to improve, the catering and retail industry has been growing steadily, the condiment industry growth trend continues to improve.
Bohai Securities said that although the condiment industry has maintained a high growth rate over the past decade, but the industry has not yet entered a mature stage, in the "volume" and "price" of the dual impact of the industry will remain high business climate.
long term, the development of the catering industry will continue to be the main source of end-demand volume, rising costs are the main drivers of price increases.
: "The outbreak hit the catering, tourism and transportation industries, the Group as a condiment production enterprises have also been affected."
face of difficulties and uncertainties, the Group has taken a number of measures to respond positively, and will continue to pay attention to the development and evolution of the epidemic, dynamic adjustment measures to maximize the reduction of the negative impact of the outbreak, to ensure that the overall operation of enterprises to achieve the annual target.
also raised its 2020 earnings forecast in its 2019 annual report, citing a revenue target of 22.78 billion yuan and a profit target of 6.32 billion yuan.