Huang Shanghuang (002695) Company Research Brief: Multi-dimensional improvement is increasingly growing cornerstone

Huang Shanghuang (002695) Company Research Brief: Multi-dimensional improvement is increasingly growing cornerstone

Brief description of the event: On the day Huanghuanghuang’s double twelve sales exceeded 20 million double12, Huang Shanghuang’s word-of-mouth platform exceeded 20 million in a single day.

Fan Xuming, deputy general manager of Huangshanghuang Marketing Center, stated that it is reasonable for Huangshanghuang to account for 50% of online business, and then consumers mainly visit the store. Next to the store, there are e-commerce, including takeaway,People stores, vending machines, etc. will all be opened, so that consumers will touch Huang Shanghuang no matter which channel they are in.

  At the same time, “Zhuzhizhongtai” provided by word-of-mouth, has a real digital solution in terms of membership, commodities, transactions, marketing, and settlement.

  The dual attributes of dining and leisure bring multiple growth factors of consumption scenarios and channels. In Jiangxi Province, the company started from the table. The products represented by sauces and ducks are of strong nature, and consumers, especially those in their 40s and 50s, may decrease; andThe development towards casual snacks will help the company to expand its young consumer base and long-term development across the country. At the same time, it can also resolve the characteristics of low dining table and low gross profit in bulk.

  More than 65% of users on Huangshanghuang are under 30 years old; nearly 30% are after the age of 95.

Through word-of-mouth electronic vouchers, Huang Shanghuang also introduced a large number of young people to the store, improving the age structure of traditional customers.

  Beginning in 2017, Huang Shanghuang proposed a change to the direction of leisure snacks. In the airport, high-speed rail and other transportation hubs, the introduction of independent packaging, casual snack products that can be accepted at any time.

  Digitalization has brought refinement to the company’s management. The intensive cooperation between Shanghuang and Ali has brought refinement and intensiveness to the company’s management. At the same time, it has also helped the company to bring more precise grasp to consumers.

Is word of mouth hungry to provide companies with effective digital tools: high-quality data to overcome Ali’s ecological sedimentation, and accurate portraits of local life users can be generated.

This will provide Huang Shanghuang with precise details of consumer needs: who the consumers are, where they are, and what they need.

  Internal and internal reforms bring continuous improvement of management. The company has prepared a complete set of standard system documents to manage franchise stores, including store location, store image, staff training, product quality, product prices, information systems, store supervision, etc.

Generally speaking, it adopts information system and related systems for standardized operation.

At the same time, the company’s incremental inventory price of main raw materials, with reference to the downward trend of raw material prices, initiated the strategic reserve of main raw materials when the purchase price of main raw materials was relatively low, thereby reducing the average cost of the company’s main raw materials and buffering the high levels in the first three quarters.At the same time, the company has continuously strengthened internal production management to save energy 杭州夜网论坛 and reduce consumption, improve product yield, and ensure the company’s product gross margin.

  Earnings Forecasts and Estimates Estimated revenue for 19/20/21 is 22.

7/29.

3/37.

700 million, net profit 2.

54/3.

7/5.

2 billion, EPS is 0.

49/0.

72/0.

98 yuan.

According to the improvement of the company’s internal and external environment and the increase of the industry’s concentration, the opening of stores in the third quarter accelerated, optimistic about the amount of string, the increase of shareholders and other factors, giving the company 33 times the revenue in 2020, with a target price of 23.

8 yuan, “Buy” rating.

  Risk reminder: food safety risk, market risk, management risk of franchise stores, franchise stores