Category: Money tips Release Date: 2006-04-23
Source: Donghai Securities Author: Wang Xingjun
Produce balsamic vinegar, soy sauce, pickles and color wine, a series of nearly 200 varieties of spices, is the world's largest manufacturer of grain vinegar, vinegar annual sales volume in 2005 reached 8 thousand tons. Hengshuncuye production Hengshun card, Jinshan card, Mount Beigu vinegar brand products sold throughout the world in 43 countries and regions, Hengshun trademark vinegar sauce industry, the first well-known trademarks in China and the first Chinese brand-name products , the company's "Gold Mountain" brand Zhenjiang Hengshun pickles and pickled vegetables were Hengshun China Food Fair Gold Medal, the National Gold Award and the International Fair gold medal, was identified as a state banquet special green products. The highest barriers in the food hygiene standards of the Japanese market, Hengshun series of balsamic vinegar products through rigorous testing to become a very small number of domestic exports of manufacturers vinegar sauce is one of well-known in the market, product prices and so on grade in the same industry in China, in an absolutely leading position.
With sustained and steady growth in the domestic economy and the country's increasing attention to food safety, consumer brand awareness in high-end products increased gradually. As the residents of affluence and consumption, raising the level of awareness of health concerns, more and more prominent, the health functions of vinegar and therefore widely shared. After fierce competition, vinegar producers, those with brand companies have gradually become the market leader. Hengshuncuye also increased research and development efforts, has developed a Hengshun vinegar capsules, Hengshun Capsules, hypoglycemic capsules, Hengshun vinegar, milk, vinegar, eggs, crab vinegar, sweet and sour sauce Mei, Gui-vinegar, and vinegar series a large number of vinegar type of health new products, is expected to become the company's new profit growth point.
Historical Information: Hengshuncuye (600,305): performance kept hidden May 16, 2006
Source: Great Wall Securities
Quotes of the year is to have one of the hot brand of consumer stocks, such as alcohol. As the industry leader in vinegar, one of Hengshuncuye (600,305) is also sought after by the market. We are bullish, while the company also noted that there is intense competition in the industry, the company is not extensive management and financial viability of worry.
Hengshuncuye vinegar in which barriers to trade lower, is a perfectly competitive industry; domestic consumers because there were no full access to the well-off phase, the brand of food has not yet formed the habit of spending, which gives a number of small and medium businesses with low-quality low-vinegar sauce the impact of low-end market price of products an opportunity to; the same time, some in high-end market of fake and shoddy products always exist. This would be against the company's brands, production decline, thereby affecting the company's sales and sustainable development. In 2005, condiments business fell 6.26 percent gross profit margin also illustrates this point.
In 2005, the Hengshuncuye were realized main business income 665.6126 million yuan, main business profit of 149.0853 million yuan, net profit of 32.4744 million yuan, respectively, compared with 2004 growth of 21.87%, 16.36% and 242.90%. From the data point of view, the company's financial position is generally sound, but through the analysis of annual reports, we believe that there are three aspects of the problem may have a negative impact on the company is worth the attention of investors.
First, It is worth mentioning is that a company of Jiangsu SOPO (Group) Co., Ltd. 11 million U.S. dollars guarantee, the guarantee period of April 21, 2003 to December 18, 2008, guarantees a long time, large amounts. Although we Jiangsu SOPO (Group) Co., Ltd. main business, financial condition not know much, but its subsidiaries and listed companies, Jiangsu SOPO (600,746) in recent years, performance has always struggled in the loss of the edge can be reflected from the side of some situation. If the operating conditions of the parent company and subsidiaries is similar to how it will be the repayment would be a problem.
Second, from a list of the holding company situation, Hengshuncuye owned subsidiary has more than 30, too much of a subsidiary would increase the cost of corporate governance, it is not economical. Meanwhile, the company still exist between a number of subsidiaries to compete with the industry possible. As in Zhenjiang one place, the company actually has a home in Jiangsu Hengshun Development Co., Ltd., Zhenjiang Hengshun Real Estate Development Co., Ltd., the scale of the three subsidiaries engaged in real estate development. From this point we see that the company's management is still in the extensive stage.
Again, from the company's accounts receivable, other receivables aging analysis of accounts receivable more than five years Hengshuncuye rapid growth, which greatly increases the possibility of bad debts, and the company's bad debt losses of the extracted proportion compared to other companies in the same industry is a relatively low level, it is relatively sudden increase in bad debts on the performance of the company's impact. In addition, the annual report on the analysis, the company about a year, accounts receivable have decreased greatly, but the company in 2006 about a year, a quarterly show its accounts receivable have rebounded sharply and exceeded the original amount. If the company can not effectively control the growth rate of accounts receivable, the future will be a larger threat to sustainable management.
