The Market Value Of 100 Billion Is In Sight. How Far Is Dongpeng Beverage'S 13 Word Limit To Become "China'S Red Bull"?

Dongpeng beverage (605499. SH), the first stock of functional beverage in a share, has been up and down for 13 consecutive trading days since it landed on the Shanghai Stock Exchange on May 27. Its share price has soared from 46.27 yuan / share to 209.10 yuan / share. The stock price has risen 351.19% and the total market value has reached 83.6 billion yuan.

Why is Dongpeng beverage so popular in the market? What is the driving logic of the stock price rising one after another?

From the perspective of industry status, according to Euromonitor International Statistics, in 2019, there are 6 brands with a market share of more than 1% in China's energy beverage industry, which are red bull (57%), Dongpeng teyin (15%), Lehu (10%), physique energy (6%), XS (5%) and zhanma (4%).

For many years, Red Bull has been the leader in the field of functional drinks in China. However, Dongpeng beverage has won a place in the energy beverage track by virtue of its high cost performance advantage. Dongpeng beverage, which is "young, should be awake" and become the next "Red Bull of China" may be the strongest expectation of the capital market.

Dongpeng beverage, the first stock of A-share "functional beverage", has been trading up and down for 13 consecutive trading days since it landed on the Shanghai Stock Exchange on May 27. Visual China

Revenue increased 83% in the first quarter of this year

According to the public information, Dongpeng beverage was formerly Shenzhen Dongpeng beverage industry Co., Ltd., which was owned by the whole people in 1994. It was a time-honored beverage manufacturer in Shenzhen. In 2003, the company completed the reform from state-owned enterprise to private joint-stock system. Lin Qin, the former sales general manager of Dongpeng beverage, started his own business and positioned the company in the production of functional drinks.

In 2013, Dongpeng beverage invited Xie Tingfeng as the brand spokesperson, and the brand "Dongpeng special drink" began to be well known and distributed in the national market.

At present, Dongpeng beverage is dominated by energy drink "Dongpeng special drink". At the same time, there are tea products such as "Yugan lemon tea", "tangerine peel special drink", cool drinks (Chrysanthemum tea, wax gourd juice beverage, and cool tea), as well as milk drinks, as well as drinking natural water and purified water. Recently, Dongpeng Jiahe, Dongpeng 0 sugar and other products have been launched successively, Comply with the new trend of "aerated drinks" and "Zero sugar drinks".

According to the prospectus, the performance growth of Dongpeng beverage is very bright: from 2018 to 2020, the revenue of Dongpeng beverage is 3.037 billion yuan, 4.208 billion yuan and 4.959 billion yuan respectively, and the net profit is 216 million yuan, 571 million yuan and 812 million yuan respectively.

In the first quarter of 2021, Dongpeng beverage achieved a revenue of 1.711 billion yuan, a year-on-year increase of 83.37%, and a net profit of 342 million yuan, a year-on-year increase of 122.52%.

Dongpeng beverage explained that the continuous growth of revenue and profit scale in the first quarter of this year was mainly driven by the good sales momentum of 500ml gold bottles, the continuous promotion of national strategy, the strengthening of Spring Festival promotion activities and the deepening of channel layout.

On this basis, Dongpeng beverage is expected to have a revenue of 3.25 billion yuan to 3.65 billion yuan and a net profit of 570 million yuan to 720 million yuan from January to June 2021, with double-digit growth of both revenue and net profit.

From the perspective of income structure, Dongpeng beverage has been grasping the key word of "energy beverage".

From 2018 to 2020, as the core product of Dongpeng beverage, energy drinks contributed 2.885 billion yuan, 4.003 billion yuan and 4.655 billion yuan respectively, accounting for 95.51%, 95.50% and 94.32% of the total sales revenue, accounting for more than 90% of the total sales revenue.

Another group of data is more convincing: from 2018 to 2020, the gross profit margin of Dongpeng beverage's main business was 45.78%, 46.66% and 46.48%, respectively, which was above 46% for three consecutive years.

According to Euromonitor International Statistical data, in 2019, the top four enterprises in China's energy beverage market achieved a total sales amount of 37.781 billion yuan, accounting for 88% of the market share.

As far as the leading industry participants are concerned, in 2019, there are 6 brands with a market share of more than 1%, namely red bull (57%), Dongpeng teyin (15%), Lehu (10%), physique energy (6%), XS (5%) and zhanma (4%). Dongpeng teyin ranks second in the market.

Zhu danpeng, an analyst of China's food industry, believes that "as the first stock of China's energy drinks, Dongpeng beverage itself has a good ability to absorb gold. Overall, the prices of liquor and food in the A-share market are relatively high, which indicates that the domestic capital market is optimistic about the long-term prospects of China's economy. As far as individuals are concerned, Dongpeng special drinks has a large single product effect, brand effect, and Scale effect, channel discourse power and even diversified development prospects are worth looking forward to, which is one of the core reasons for the craze of domestic capital market for it. "

Only since June this year, seven securities companies, including Debang securities, Northeast Securities, Guohai Securities and Cinda securities, have made research reports on "buying" or "increasing Holdings" of Dongpeng beverage.

For example, Xinda securities research paper on June 10 pointed out that "in 2009, Dongpeng beverage pioneered the pet plastic bottle packaging and unique dust cover patent design, and established its own school in the market with differentiated product packaging, breaking the market limitations of canned packaging of energy beverage products. On the packaging of the same specification, the price of the company's products is only half of that of Red Bull, but the content of its main functional components is consistent with that of Red Bull, which reflects the high cost-effective advantage. It has attracted a number of blue collar consumers and formed differentiated competition with red bull for white-collar consumers. "

Fancy marketing establishes unique advantages

The 21st century economic report reporter combed the prospectus and found that since 2018, Dongpeng beverage has replaced red bull as the sponsor of China Super League league, and sponsored CCTV Russia world cup and Portugal national football team.

In 2019, Dongpeng tremolo challenge won more than 6 billion exposures. Meanwhile, it has implanted and titled "Sansheng Sanshi Shili peach blossom", "dear, beloved", "Ode to joy", "the name of the people", "high energy Youth League", "happy comedian" and other popular films and TV programs.

In 2020, Dongpeng teyin will be named "day and day up" of Hunan Satellite TV in the second quarter, and "54 party" of Hunan Satellite TV named by orange lemon tea. Meanwhile, popular films and TV such as "love apartment 5", "settling down", "fox hunting" and "Tomb robbing notes restart" will be implanted in the same period.

It is worth mentioning that in 2016, Dongpeng teyin initiated the "band aid" in the film and TV series implantation of "laojiumen", which interacted with the audience in the form of bullet screen and innovated the implantation marketing mode.

Just a week ago, the official wechat official account of Dongpeng teyin sent a message to the company, including Han Hong, Yang Zi, Wang Han, Xie Tingfeng, Rong Zuer, Wang Baoqiang, Guo Jingjing, Wu Minxia, sun Yizhou, Haiqing, Li Jiahang, Wang ou, Zeng Shunxi, Chen Jianbin, pan Yueming, Tang Yixin, and other 16 domestic first-line Mingxing stars sent the company listing blessing.

In addition, in recent years, through multi-dimensional marketing means, Dongpeng teyin's brand proposition of "young should be awake" has gradually become popular.

The risk lies in the single income structure

Dongpeng beverage, which holds the "trump card" of energy drinks, is also aware of the risk of relatively single source of income: in the past three years, its energy beverage income accounted for more than 90%.

In this context, Dongpeng beverage is also constantly enriching its product line. In 2018, Dongpeng beverage repackaged the tangerine peel drink, and in 2019, it launched a new product "Yugan lemon tea", which increased the sales revenue of non energy drinks and packaged drinking water from 136 million yuan in 2018 to 281 million yuan in 2020. However, compared with the revenue scale of energy drinks with billions of yuan, Dongpeng beverage has made great progress, The contribution of non energy drinks income is still limited.

In fact, many A-share beverage enterprises, such as Chengde Lulu (000848. SZ), Yangyuan beverage (603156. SH), are facing the potential risk of single product.

Take A-share listed beverage enterprises as an example: Xiangpiao (603711. SH) focuses on milk tea segmentation. In 2019, its milk tea product revenue accounts for 99.09% of the operating revenue; Yangyuan beverage focuses on the subdivision of plant protein beverage and creates a large single product strategy around "six walnuts". In 2019, the income of "six walnuts" walnut milk products accounts for 98.91% of the operating revenue; Chengde Lulu focuses on the subdivided field of plant protein beverage, and its leading product is "Lulu" almond dew. Its revenue accounts for 99.91% of the operating revenue in 2019.

Dongpeng beverage also responded in the prospectus that "in the beverage industry, the phenomenon of single enterprise products is relatively common. The success of a drink often requires a long time of market test, and once the consumer's consumption habits are formed, they are usually relatively stable. Therefore, many beverage enterprises will focus on a specific field for a long time, concentrate on making a certain series of products bigger and stronger, and strengthen their own brand advantages. ".

On the day of listing on May 27, Lin Muqin, chairman of Dongpeng Beverage Co., Ltd., said at the Gong beating ceremony: "in the future, the company will continue to focus on making functional drinks, so that Dongpeng will become a national brand with energy drinks as the main component and other functional drinks as one."

In addition, the main market of Dongpeng beverage is currently concentrated in Guangdong. From 2018 to 2020, its sales revenue from Guangdong accounted for 61.10%, 60.12% and 55.74% respectively, all above 50%.

Dongpeng beverage said that although the company actively explored the markets of Guangxi, central China and East China, and the proportion of Guangdong's regional revenue decreased during the reporting period, the company's sales share in Guangdong was still high and the sales regions were relatively concentrated.

However, with the company's Anhui and Guangxi production bases put into production in 2013 and 2018, Dongpeng beverage has formed production bases in Guangdong, Anhui, Guangxi and other major regions in China.

At the same time, Dongpeng beverage is also constantly expanding channels: by the end of 2020, Dongpeng beverage has 1600 dealers, and its sales network covers about 1.2 million terminal stores in China.

?