Waiting For Five Years, Good Shop Will Break The "Listing Bureau", "Three Big Snacks Giant" A Shares.

After three squirrels, A shares will meet another snack magnate.

According to the announcement of the 187th annual working meeting of the eighteenth issuance examination committee released by the SFC in 2019, the leisure snacks brand good shops will be examined on November 28th (Thursday).

In recent years, the speed of securitisation in snack industries has accelerated significantly. Paraquat, three squirrels and good shops are called the "three giants of the snack industry". Among them, paraquat was successfully landed on A shares in 2016, and three squirrels were listed on the gem in July this year. Other similar brands came to Yanjin and the shops were listed. If the good shop is successful, the big snack industry will gather in A shares.

On the securitisation Road, several big snack giants are fighting fiercely for the offline market. "The strength of the big three in the snack industry is quite the same now. It's hard to say who can be the last winner. But there is no doubt that with the online dividend disappearing, who will be able to take a firm foothold in the market and who will be the last winner? In November 25th, a Shanghai food industry analyst said in an interview.

In contrast, the good shop is currently the three largest snack giant in the middle and offline proportion of the most balanced one, in recent years, it vigorously promoted the high-end line. But for this strategy, the market is mixed. Whether the high-end can really help the good shops to win a wider market still needs time to test.

Get up early, catch up late?

It has long been planning a good shop for listing, and it can be described as "starting early in the morning and catching up late in the night" on the road of securitisation.

According to public reports, in 2014, the good shop planned to go to Hong Kong to go public, and built a red chip structure for this purpose, but eventually planned to abort. After that, the good shop moved to A shares, and the above red chip structure was demolished. In June 2018, the good shop formally submitted IPO application materials to the SFC.

After waiting for a year and a half, the good shop finally launched an attack on IPO. During this period, three squirrels landed on the gem this year and won the title of "national snack first share". In 2016, paraquat went to A shares through the way you want to buy.

In contrast to the performance of the above three enterprises, 2017 should be a turning point. Prior to this, with the help of e-commerce channels, the performance of each company has doubled and doubled, but after the Internet dividend has gradually disappeared, performance growth has shown weakness.

2015, in 2016, three squirrels grew by more than 100% in revenue, and dropped to around 25% in 2017 and 2018. I think you completed the acquisition of paraquat in 2016, after 2017, the growth rate of revenue and net profit was 96.47% and 172.19% respectively, but in 2018, two growth slowed to 21%. Good shop 2017 revenue growth rate of 26.45%, compared to the 36.2% growth rate in 2016 has declined, net profit growth has slowed down considerably, 2016, the net profit growth rate of good goods shop as high as 118.16%, 2017 plunged to 14.66%.

Under this situation, various companies have been fighting under the line, laying solid shop under the line, and three squirrels began to layout the shop and squirrel shop. For good shops, though the advantages are below the line, the pressure can be imagined.

How to break the situation? Listing is one of the solutions.

Listing means that the financing channels of enterprises are more diversified, which will provide support for the laying of all channels. It is precisely for this purpose that we are offering services from the good shops. The total investment amount of the total investment project is 770 million yuan, which is used for all channel marketing network construction, warehousing and logistics system construction, digital upgrading of good quality information system, and upgrading and upgrading of food research and development center and testing center.

Good shop in the prospectus frankly, although the company through many years of brand operation and market development and has entered a good track of development, but at present, the company's asset scale is still difficult to meet the long-term development needs of the company, through this financing can effectively implement investment items, further enhance the company's capital strength and profitability.

High-end competition

A research report of Guoxin Securities has conducted a comparative analysis of the above three snack giants from the aspects of business mode and product structure, and found that three squirrels are digitally powered supply chains.

The team selected pork jerky, nuts and dried mango as representative on Tmall supermarket, and unified the weight by calculation. It was found that the price of good shop under the same weight was higher than that of three squirrels and herbs.

The data from the Ministry of commerce can also be used as a proof of its "high price". From the number of the highest priced categories in the snack industry, we can see that there are 16 good shops, 11 in Iraq and three in squirrels.

High end pricing is one aspect of the high-end development of good shops. In January 7th this year, good shop officially announced the implementation of high-end strategy. Yang Hongchun, the founder and chairman of the board, hopes to create differentiated competition through high-end snacks.

Yang Hongchun said, "high-end snacks are not equal to luxury goods, but since we decide to make good products, we need to distance ourselves from the market behaviors such as discount sales promotion, low quality and low price."

However, from the point of view of gross margins, good shops and peers do not show advantages. In the first half of 2018, the gross profit margin of the good shop was 29.75%, the gross profit margin of the company was 43.3%, and the gross profit margin of the Yanjin shop was 41.75%. Just like the good shop, I miss you very much. The gross profit margin is 28.8%.

From the point of view of sales mode, the gross profit rate of the direct sale mode is the highest in the first half of 2018, but 48.59% in the first half of the year, but no more than 30% in the offline sales mode, the large client group buying mode and the online sales mode. In addition, compared with 2016, the gross profit margin of the main business in the first half of 2018 decreased by about 3 percentage points.

In this regard, the good shop's explanation is that the gross profit margin of the company's direct selling channel is close to that of its peers. The main business gross margin is lower than that of the same industry, because the proportion of the company's channel revenue is quite similar (the proportion of online revenue in the first half of 2018 is 44.85%), but the gross profit margin of the affiliate and online platform is relatively low. Compared with the three squirrels, the company's online business starts relatively late, in order to enhance the line. A more preferential pricing strategy was adopted.

The issue of gross margin is the pain point of the same industry, or the original intention of the company's high-end. Good shop in the prospectus, because the leisure food industry entry threshold is low, product homogenization is serious, competition is more intense, which makes the industry's overall gross margin level is low, but it can "reduce procurement costs, improve management efficiency, develop high-end products, improve the competitiveness of the industry." "The company needs to implement the leisure and instant plan for high-end customers through project implementation." "The company needs to implement differentiated product strategy through project implementation to guide the company to achieve new breakthroughs in the field of leisure food and maintain its dominant position."

It is worth noting that the release of the high-end strategy of the good shop is exactly the 4 day before the prospectus is updated.

However, it is still unknown whether good shops can break the siege with high-end strategy.

"First of all, as a snack, how can I achieve high end? I don't understand at the moment. There are two problems with good shops. One is limited to the locality. The stores are mainly distributed in Hubei, Guangxi and Hunan, and can not walk out of the country. Two, there is a lack of popular products. From the experience of overseas snack giants, they all have a well known large single product. At present, when it comes to three squirrels, they can think of nuts, but what about good shops? The brokers analysts pointed out.

Good shops still have their own advantages. "In the case of scramble for the line, all of them started out from the offline outlets, the development line, and the company's greater input in information technology. It is the most mature enterprise in the field of information management system in the field of leisure food, which makes it easy for companies to accurately portray consumers with big data and basically get through the whole channel." Another industry analyst of a medium-sized brokerage said.

?