① The “soy sauce boss” Zhongju Hi-Tech's Q2 performance stalled, dragging down revenue growth in the first half of the year; ② Food and beverage industry investor Chen Xiaolong said that judging from the actual growth situation, the overall growth of the condiment industry in the first half of the year should only be in single digits. Investors should maintain cautiously optimistic expectations for the second half of the year.
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Financial Services Association, August 8 (Reporter Ren Chaoyu) “Soy sauce boss” Zhongju Hi-Tech (600872. SH) Q2 results failed to continue the Q1 growth momentum, which dragged down revenue growth in the first half of the year. Chen Xiaolong, an investor in the food and beverage industry, told the Financial Federation reporter that judging from the actual growth situation, the overall growth of the condiment industry in the first half of the year should only be in single digits. Investors should maintain cautiously optimistic expectations for the second half of the year.
Zhongju Hi-Tech announced this evening that in the first half of 2024, the company achieved operating income of 2.618 billion yuan, a year-on-year decrease of 1.35%; net profit attributable to shareholders of listed companies was about 0.35 billion yuan, turning a year-on-year loss into a profit; net profit after deducting non-recurring profit and loss was 0.339 billion yuan, an increase of 14.53% over the previous year.
On a quarterly basis, the company's Q2 revenue fell 11.96% year on year, and after deducting non-net profit, fell 32.37% year on year. This is a gap between the company's Q1 revenue and net profit “exceeding expectations” performance.
(Source: Company 2024 Semi-Annual Report)
The company said that the decline in revenue was mainly affected by the slowdown in macroeconomic recovery and the intensification of competition in the industry. Condiments have always been classified as daily necessities. Some analysts believe that essential consumer products can often show strong stability and resilience to risks. As a result, some investors commented on the forum, “Turn off the lights and eat noodles without putting out soy sauce?”
### (data source: Wind Data)In March 2024, Zhonghu Hi-Tech released an equity incentive plan and agreed on relevant performance assessment goals. Among them, the revenue growth rate in 2024 was not less than 12%.
(Source: Company 2024 Restricted Stock Incentive Plan Implementation Assessment Management Measures)
Considering the negative growth in the company's revenue in the first half of the year, the pressure to achieve this assessment target was put on in the second half of the year. (Note: According to financial data, Zhonghu Hi-Tech's operating profit margin for the first half of 2024 was 16.73%, and the return on net assets - diluted was 7.52%.)
Chen Xiaolong told the reporter that judging from the actual situation, the overall growth rate of the condiment industry is far lower than online growth, and the overall growth of the industry should only be in single digits. The biggest consumer side of condiments is that consumption through food channels is still sluggish, while on the second-largest consumer side of condiments, household consumption is generally cautious.
Bruce Chen said that investors should have cautious and optimistic expectations for the second half of the year. From an industrial perspective, there is still potential for growth in the condiment market. The second half of the year is the peak season for condiment consumption. Some condiments, mainly food consumption, can account for more than 60% of consumption in the second half of the year, but we also need to pay attention to several key factors: the overall boom in the catering industry, fluctuations in the domestic and foreign economic environment, and the evolution of consumer confidence and consumption preferences.