According to Futu News on March 27th,$FUJING HOLDINGS (02497.HK)$Today's dark market opened higher, closing up 108.33% to HK$2.25, with a turnover of HK$3.166,400, with a total market value of HK$1,125 billion; 2,000 shares per lot, without handling fees, earned HK$2,340 per lot.
Market Source: Futu Securities Securities>
Investment highlights
Leading potted vegetable agricultural products in Shandong Province: In 2022, the company was the largest producer of potted vegetables in Shandong Province in terms of sales revenue, accounting for 14.8% of the market share in Shandong Province. At the same time, the company has received many government awards and certifications, such as the 2018 Qingdao Green Vegetable Garden awarded by the Qingdao Municipal Agriculture Commission and the 2014 Qingdao Municipal Vegetable Control Base awarded by the Qingdao Municipal Bureau of Commerce.
Excellent products and mature business: Potted vegetable agricultural products are sold when fresh and have brand characteristics. The company enjoys a reputation for food safety and quality control, and has obtained many national quality management system certifications, such as the pollution-free agricultural product certification issued by the Qingdao Municipal Bureau of Agriculture and Rural Affairs. Distributors' mature distribution channels and resources can increase the market penetration rate of products, and the company can effectively and efficiently distribute products at all levels from cities and urban centers to townships at all levels. The company has a mature distribution network throughout Shandong Province. Each year/period, the company has 10 distributors selling potted vegetables and agricultural products in Shandong Province. The efficient distribution model has proven effective for the existing market and the development of new markets in the future.
Risk warning
Distributor business impact: A company's business benefits are highly dependent on the ability of distributors to continue selling to their own customers. Major distributors' business declines or is unable to acquire other customers, and the company's business performance and financial situation may be adversely affected.
Fluctuating raw material costs: One of the main operating costs of the company's business is the cost of raw materials for growing potted vegetables and agricultural products. The company's raw materials mainly include (i) organic matrix components; (ii) seeds; and (iii) fertilizers and biopesticides. Any shortage of supply of these raw materials or any surge in demand will cause their prices to rise. If a company fails to anticipate and respond to such price fluctuations, its profitability may be adversely affected.
Edit/Afina