The "first share of the spicy strip" that repeatedly bumped into the wall: Weilong Holdings 73 times the price -earnings ratio to be examined

The 21st Century Business Herald reported that Hanyi Beijing reported "Spicy Bar" Weilong Delicious Global Holdings Co., Ltd. (referred to as Wei Long Holdings) Hong Kong stocks listed on the market and then made new progress. According to multiple media reports, Wei Long Holdings is considering the earliest start in October in October. In the first public offering of the Hong Kong stock market, the financing scale may reach $ 500 million, with a target valuation of 4.7 billion US dollars.

On June 27, 2022, after the hearing of Wei Long Holdings through the Hong Kong Stock Exchange, this is the first time that the company's Hong Kong stock market was listed on the latest listing news. The details may still change. In this regard, the 21st Century Business Herald reporter verified Weilong Holdings, and no answer was obtained as of press time.

Waves of three discounts

On June 27, 2022, the Hong Kong Stock Exchange disclosed that Wei Long Holdings has passed the listed hearing. Morgan Stanley, CICC and UBS Group are joint sponsor for their joint. Following May 2021 and November 2021 Later, the company Weilong Holdings went to Hong Kong stocks for the third time to obtain a key step. The industry once believed that the company was about to complete the listing and distribution, but the company did not see any actions in the company after two months.

The 21st Century Economic Herald reporter noticed that Wei Long Holdings has heard more than once through the Hong Kong Stock Exchange. On November 14, 2021, Weilong Holdings's first listing application was listed on the Hong Kong Stock Exchange. The company's listing was eventually blocked. From May 12, 2021, Wei Long Holdings first submitted a prospectus to the Hong Kong Stock Exchange for the first time. The company's listing process can be described as twists and turns.

The latest hearing data shows that Wei Long Holdings mainly specialize in spicy and casual foods. The products include seasoning products, vegetable products, soy products and other types. Essence

Weilong Holdings was formerly known as Wei Long Food, and was founded by the founders Liu Weiping and Liu Fuping in Luohe City, Henan Province. Weilong Holdings's official website shows that this leisure food company starting from a handmade production workshop has been officially registered with the "Weilong" trademark in 2003 and has developed a history of 20 years.

According to Ferrusana, according to the statistics of retail sales in 2021, Weilong Holdings ranks first among all spicy and casual food companies in China, with a market share of 6.2%, and in the seasoning products and spicy casual vegetable products The market share of the division category ranks first.

From 2019 to 2021, Wei Long Holdings achieved total revenue of 3.385 billion yuan, 4.12 billion yuan, and 4.8 billion yuan, respectively, and the net profit of each period of each period reached 659 million yuan, 821 million yuan, and 908 million yuan. Adjust net profit margins (non -International Financial Report Guidelines) reached 19.5%, 19.9%, and 18.9%, respectively.

According to the revenue during the reporting period of Weilong Holdings, the company's annual compound growth rate was 19.1%, the growth rate far exceeded the compound annual growth rate of 4.2%during the same period of the Chinese leisure food industry. Statistics show that the gross profit margin period of the reporting period is far from far away. About 10%of the average net profit margin of China's leisure food industry in 2020.

In the early stage of submitting the listing of listing declarations, Wei Long Holdings, which has been wholly -owned by the Liu Weiping family, completed a new round of financing, attracting a lot of luxury capital giants including CPE, Gaoma Group, Yunfeng Fund, Tencent, Sequoia China, etc. The total financing amount is as high as 659 million US dollars, the company's overall valuation is more than 60 billion yuan, and the static price -earnings ratio is 73 times.

But it is such a leisure giant favored by a capital giant, but it has repeatedly encountered walls in the capital market.

According to the 21st Century Business Herald reporter, on May 12, 2021, Wei Long Holdings submitted a prospectus to the Hong Kong Stock Exchange for the first time, but he had not waited for the hearing of the Hong Kong Stock Exchange. On November 12, Wei Long Holdings submitted a listing application to the Hong Kong Stock Exchange again.

On November 14, 2021, Wei Long Holdings successfully passed the first listed hearing through the Hong Kong Stock Exchange, but did not enter the roadshow's prospectus process. The listing application materials were invalid again in May 2022. After that, the company restarted again, and welcomed the second listing of the Hong Kong Stock Exchange on June 27, 2022. According to the listing period of the Hong Kong Stock Exchange, it can be listed in about 20 to 25 days after the hearing. At present, Wei Long Holdings has been two months after the second hearing. Data or facing failure again.

Whether it has been cleaned up to listing obstacles

"The slow listing of Weilong Holdings is mainly based on the company's downturn in the Hong Kong stock market." A reporter from a head of a head of Beijing told the 21st Century Economic Herald reporter that recently overseas liquidity is tightening and the global economy has weakened. The Hong Kong stock market is lingering at the bottom, affecting the listing process of some listed companies.

However, the 21st Century Economic Herald reporters noted that some market analysts pointed out that the slow listing process of Weilong Holdings has nothing to do with the number of disputes in the company during the reporting period.

According to public information, Wei Long Holdings claims that the product lines such as seasoning noodle products (spicy), vegetable products, soy products and other products have been deployed. In the year, the company's spicy bar product revenue was 2.475 billion yuan, 2.690 billion yuan, and 2.918 billion yuan, respectively, accounting for 73.1%, 65.3%, and 60.8%of the company's total revenue during the same period. With a single spicy product support, Weilong Holdings has grown at a high scale of business scale, but behind the business situation where the growth rate of net profit has slowed down. The financial report data shows that Wei Long Holdings ’net profit increase in 2021 is only nearly 1%. In April 2022, in order to achieve the growth of operating performance, Wei Long Holdings announced that the price increase was increased, causing dissatisfaction among some dealers.

Market analysts pointed out that Wei Long Holdings's main products have a low added value and have a strong replacement. They do not have the ability to increase price and price increase. The company's price increase may lower the company's sales scale. Therefore, the company's operating strategy is required to change the single spicy revenue structure.

Not only that, during the reporting period, Weilong Holdings was also exposed to many disgraceful marketing events, and controversial marketing was even more commonly reported. For example, the company has directed and performed the Black Dragon Tmall flagship store by the black incident, changing the homepage of Tmall store to the "small website" similar to color, and the recent controversial "appointment" incident.

Relying on marketing marketing, Wei Long Holdings has achieved good marketing effects in the short term, but it has also caused many accusations in the market. Even official media such as People's Daily have publicly resisted Weilong Holdings's vulgar marketing.

In the previous external institutional financing, the company has only been fired to 60 billion yuan for valuation with the "first share of spicy bars". Whether it can be accepted by investors after being pushed to the secondary market is also a major test of the company's listing.

In the increasingly competitive leisure food market, due to the rise in raw material prices and other factors, most of the casual snack companies that have been popular with capital have performed bleak. Foods (300973.SZ) and other listed companies have recently declined, and their valuations have even chopped up.

According to Shenwan's leisure food index, the overall price -earnings ratio of the industry is about 35 times. Weilong Holdings with a 73 -fold price -earnings ratio can be obtained by the capital market's recognition of whether it can be obtained.

Some brokerage analysts pointed out that Wei Long Holdings is still not wise to impact listing before the food sector has recovered. The company's main product "spicy bar" market acceptance is declining. Whether marketing can succeed requires time to verify.

At the market level, fast -moving products such as heavy oil and salt are considered junk foods, which are contrary to the increasingly healthy consumption trend of consumers. Maintain consumer recognition. Therefore, how to find a new marketing method in the times is the next focus of Weilong Holding's strategic layout.

In this fund -raising plan, Wei Long Holdings intends to use the net fundraising to expand and upgrade the company's production facilities and supply chain systems, further expand sales and distribution networks, brand building, and company business digital intelligence construction and other projects. In other words, Wei Long Holdings intends to take the opportunity of Hong Kong stocks to reshape the company's marketing network construction and brand building. Whether the company can win investor information again needs to see the company's brand marketing "re -layout".

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