"Investor Network" Ge Fanmei
As a small and medium-sized milk powder enterprise, Meilu Biotechnology Co., Ltd. (hereinafter referred to as "Meilu Bio") has made new progress in its listing.Since its failure to hit the main board of the Shenzhen Stock Exchange, Meilu Bio has turned to apply for an IPO on the ChiNext Board and updated its prospectus on May 12.
In the milk powder industry, Meilu Biology and Shaanxi Hongxing Meiling Dairy Co., Ltd. (hereinafter referred to as "Red Star Meiling") and other enterprises belong to the second echelon of the industry. However, on May 6, Red Star Meiling failed to meet the issuance conditions , listing conditions or information disclosure requirements”, its listing application has been terminated, so what is the prospect of Meilu Bio’s listing?
Compared with leading companies, Meilu Biotech is small in scale and lacks competitiveness.Today, in the era of low fertility, the company's operating income growth rate has declined, profitability has declined, dealers have changed frequently, and production has been greatly expanded in the case of overcapacity.
"Investor Network" contacted Meilu Biotechnology about the IPO-related situation. On June 2, the company replied to "Investor Network", saying that "please pay attention to the information announced on the relevant official website at any time" on related issues.
Operating income growth declines
According to the prospectus, Meilu Bio is mainly engaged in the research and development, production and sales of infant formula milk powder, modulated milk powder, formula food grade and other nutritional products for special medical purposes and other related products.At present, the company has two major infant formula milk powders, "Meilu" and "Aiyouruote", and the products include 6 series.
In recent years, the growth rate of Meilu Bio's operating income has slowed down.According to the prospectus, from 2019 to 2021, Meilu Bio’s operating income was 356 million yuan, 374 million yuan, and 385 million yuan, respectively, with year-on-year growth rates of 15.23%, 5.04%, and 3.04%, respectively. The growth rate has dropped significantly.
In terms of net profit, from 2019 to 2021, the net profit of Meilu Biotech was 82.6538 million yuan, 87.4984 million yuan, and 95.5781 million yuan respectively. 79.5237 million yuan and 87.4928 million yuan.
From the perspective of subdivided product structure, the revenue of Meilu Bio’s main product infant formula milk powder has dropped significantly, from 290 million yuan in 2019, accounting for 81.88%, to 251 million yuan in 2021, accounting for 65.67%.
As a milk powder company, Meilu Bio is mainly aimed at infants and young children aged 0-3. In the social environment where the birth rate is gradually declining, its performance growth is facing a lot of challenges.According to data from the National Bureau of Statistics, since the implementation of the universal two-child policy in 2016, my country's annual birth population has dropped from 18.83 million in 2016 to 10.62 million in 2021, declining year by year.
Births since 2011
At the same time, the market competition in the milk powder industry is becoming increasingly fierce. Compared with the leading companies in the industry, Meilu Biotechnology, such as China Feihe (6186.HK), Ausnutria (1717.HK), Beingmate (002570.SZ) and other first-tier companies , the competitiveness is still insufficient.
Wind data shows that in 2021, the operating income of China Feihe, Ausnutria, and Beingmate will be 22.7 billion yuan, 8.8 billion yuan, and 2.5 billion yuan, respectively. Compared with the 385 million yuan revenue scale of Meilu Bio, there is a big gap. .
At present, affected by factors such as the decline in the birth rate of newborns, the growth rate of the industry has generally slowed down, and the stock competition in the domestic milk powder industry has also intensified.In this case, the growth rate of Meilu Bio is much lower than that of peer companies.In 2021, the growth rates of China Feihe and Ausnutria will be 22% and 11% respectively. Even Red Star Meiling, which has an operating income of 378 million yuan and is comparable in size to Meilu Bio, will have a revenue growth rate of 4.08%, a high level. 3.04% of the same period in Meilu Bio.
Dealers change frequently
According to the data of China Dairy Industry Association, the market share of domestic milk powder accounts for about 60%-65%.In the diversified competition, dimensions such as quality, channel, service, safety, popularity, and consumer recognition are all important factors that affect consumers' purchase.
Infant formula milk powder is the highland of dairy technology research and development and innovation. By the end of 2021, my country has approved the registration of 1,325 infant formula milk powder product formulas, including 997 formulas from 121 domestic factories.
The prospectus shows that Meilu Bio has a total of 6 infant formula series and 18 product registered formulas, while Nestle Wyeth in the United States, Yili in China, Mengniu, China Feihe, Beingmate, and Ausnutria have obtained 40 registered formulas, 45, 45, 54, 54, 60, 45.
Compared with the first-tier enterprises in the industry, Meilu Biotech urgently needs to build its own brand awareness.However, Meilu Bio has not invested much in its own sales expenses.According to the prospectus, from 2019 to 2021, the sales expense ratios of Meilu Biotechnology are 15.59%, 13.26%, and 13.13%, respectively, and gradually decline; The annual sales expense ratios were 29.55%, 27.22%, 29.35%, and 10.83%, respectively.
However, the decline in the expense ratio did not improve the company's gross profit margin.According to the prospectus, from 2019 to 2021, the comprehensive gross profit margins of Meilu Biotechnology were 48.29%, 46.22%, and 46.58%, respectively, and the industry average gross profit margins were 52.35%, 51.57%, and 49.66% during the same period; among them, China Feihe, The gross profit margins of Ausnutria, Beingmate, and Red Star Meiling in 2021 are 70.28%, 49.86%, 46.92%, and 34.67%, respectively. The gross profit margin of Meilu Biotechnology is lower than the industry average, and it shows a downward trend.
Among them, the gross profit margin of Meilu Bio's self-produced products has dropped significantly, and the proportion of self-produced products has dropped from 80.85% in 2019 to 64.69% in 2021; from 2019 to 2021, the gross profit margins of agency products are 22.84% and 18.94% respectively. , -7.8%, the company said that the decline in gross profit margin in 2021 is mainly due to market competition incentives, and continued to increase promotions.
In terms of channels, Meilu Bio is mainly based on the distribution model. In the same period, the sales revenue of the distribution model was 325 million yuan, 322 million yuan, and 309 million yuan, accounting for 91.93%, 86.65%, and 80.78%, respectively. The revenue scale of the model has stagnated or even declined.
From the perspective of changes in distributors, from 2019 to the end of 2021, the number of distributors of Meilu Biotechnology was 636, 770, and 692, and the number of distributors exited in each period was 337, 226, and 307, accounting for the beginning of the period. The proportions are 44.99%, 35.53%, and 39.87% respectively; in 2021, 307 dealers will withdraw, exceeding the number of 229 new dealers.In addition, the number of individual industrial and commercial households among the distributors of Meilu Bio in the same period was 601, 512, 636 and 435 respectively.
It is worth noting that Boaiwa Infant Department Store (hereinafter referred to as "Boaiwa") in Santa Town, Yingzhou District, Fuyang City is an individual industrial and commercial household. Every year, the sales amount of Meilu Biology to it exceeds 10 million yuan.According to Tianyancha information, the registered capital of Boaiwa is only 50,000 yuan.
Insufficient capacity utilization
In this IPO application, Meilu Bio plans to raise about 383 million yuan, of which 221 million yuan will be invested in a new production line with an annual output of 10,000 tons of infant formula powder, milk powder and whey ingredient powder, and 81.74 million yuan will be used for brand promotion and For the construction of sales channels, 49.13 million yuan was used for the nutrition and health research and development center, and 30.16 million yuan was used for the upgrading and transformation of the enterprise information system.
Meilu Bio-funded projects
According to the prospectus, Meilu Bio has a production capacity of 6,300 tons. From 2019 to 2021, the company's capacity utilization rates were 66.29%, 70.84%, and 70.15%, respectively, and the production capacity was not fully utilized.
According to the data of the China Dairy Industry Association, the current annual output of infant formula milk powder enterprises in the country is less than 1,000 tons, accounting for 30% to 40%. Not much.
Representative enterprises of milk powder industry
The prospectus shows that Meilu Bio’s raw materials mainly come from imports, and overseas purchases account for about 50%.The company was also subject to administrative penalties for illegally disposing of goods under customs supervision.
On July 22, 2021, Jiujiang Customs issued the "Decision on Administrative Punishment of Jiujiang Customs of the People's Republic of China" (Tongguan Jibanning [2021] No. 006) to Meilu Bio, and determined that it was issued on January 13, 2021 and 2021 respectively. On January 14, 2018, without the permission of Jiujiang Customs, the skimmed milk powder under the containers "TCKU7065920" and "TCLU8039481", which were inspected by Jiujiang Customs as the destination, was extracted to the warehouse without authorization and opened.
Food safety issues have been exposed, and the capacity utilization rate is only 70%. We must continue to expand production capacity. Can Meilu Biotech be able to digest its future production capacity, can it stand out in the fierce market competition, and can it successfully pass the IPO this time?"Investor Network" will continue to pay attention.(Produced by Thinking Finance)■
