Late in the night of July 23, Sipu Gabu released a performance forecast for the first half of 2020, with a net loss of 200 million yuan to 300 million yuan, compared with a net profit of about 164 million yuan in the same period last year. According to the forecast, the operating revenue decreased by 29% compared with the same period last year. The decrease was mainly due to the outbreak, especially in Hubei Province and Beijing, where more than 30% of the groups stores are located.
By the end of July 24, Sipu Sipu fell 3.62% to HK $7.72/share, with a total market value of HK $8.35 billion.
Under the epidemic situation, catering enterprises in the first half of this year were under greater pressure. Industry insiders said that during the outbreak, 93% of catering enterprises closed their stores, of which 73% closed all their stores. And these store closures have seriously affected the performance.
It is reported that since January 24, most of the stores in the mainland have voluntarily suspended business. From February to March, the company was most seriously affected by the epidemic. Since then, the operating performance of the stores has gradually improved. During this period, Gabu Gabu implemented a number of mitigation measures, including promoting non-contact takeout service, promoting its own takeaway app and selling raw materials of dishes in online shopping malls, sharing employees and store staff with other companies, negotiating to reduce store rent, implementing self-service ordering system in stores, and closing stores that failed to meet expectations.
At the same time, the epidemic also affected the opening time of the companys new stores, but Sipu said it would continue to actively open new stores in the future and promote the expansion of the store network.
In any case, the impact of the epidemic on Sipu is undoubtedly huge, but before the outbreak of the epidemic, the profitability of Sipu has begun to decline.
At the same time, the turnover rate and the same store sales growth rate of Xiabu and Xiabu restaurants have declined, of which the turnover rate decreased from 2.8 times / day in 2018 to 2.4 times / day; the growth rate of same store sales decreased from 2.1% in 2018 to 1.4% in 2019.
Waterloo in catering industry
Hot pot Shuangxiong loses money
In addition, the profit warning issued by Jiumao, a Hong Kong stock catering brand, also shows that the total revenue in the first half of this year is expected to decrease by about 23% compared with the same period in 2019. According to the supplementary announcement, its net loss is expected to be no more than 120 million yuan, while its profit in the same period of 2019 is 102 million yuan.
Goldman remains bullish
Sipu Gabu was listed in December 2014, becoming the hot pot first stock in Hong Kong stocks. From the perspective of its performance since its listing, it has performed mediocre for more than a year after listing, and hit HK $2.38/share on January 26, 2016, setting a record low for the share price. However, the stock price soared 580% and the market value soared by HK $16.5 billion as of July 2018. After reaching the high point in July 2018, the stock price has dropped by 24% since the beginning of the year.
Goldman said that while the current revenue is broadly in line with expectations, it believes that net losses may be greater than expected due to deleveraging operations and slow growth in new stores. However, Goldman Sachs said it was positive about its long-term expansion strategy, gathering momentum and improving cost management, so it maintained its buy rating with a target price of HK $9.1.
According to Northeast Securities research paper, in the short and medium term, the expansion of Chuizhi and Xiabu stores, and the long-term view of takeout and retail business, the impact of this years epidemic on the short-term performance of the catering industry is inevitable. However, the company has made full use of the leading advantage of hotpot track, expanded its takeout business, and actively responded to the impact of the epidemic, giving the company a 20 fold valuation in 2021.
Haidilao, jiumaojiu and Xiabu Xiabu all started in the 1990s, and they opened stores and speeded up after 2010. The shares are relatively concentrated. The founders and actual controllers hold more than 40% of the shares, and the founders have more than 22 years of working experience in the catering industry, with rich experience. In terms of management system, the core of Haidilao is to link interests and lock management, create an original apprenticeship system, and establish an industry-leading salary system; jiumaojiu has an open / innovative / win-win corporate culture; Sipu Sipu has established a four-level management structure. In terms of supply chain, Haidilao mainly purchases from related parties and has a relationship with major suppliers for more than 5 years; jiumaojiu and Xiabu Xiabu mainly purchase from third parties, and their relationship with major suppliers exceeds 3 years / 5 years. Quality management system: the three enterprises have strict quality management system. Haidilao also uses digital software to promote the visualization and timeliness of food safety monitoring.
Zhu danpeng, an analyst with Chinas food industry, said the impact of the epidemic on the catering industry was mainly in two aspects, including the flow of people and consumer spending power. The main consumers of the catering industry are the young enterprises. In addition, it also benefits the head enterprises. In the post epidemic period, peoples various social activities are carried out normally, and the head enterprises give people strong confidence. In Zhu danpengs view, the first wave of recovery in the catering industry is the leading enterprises, and the second wave of mass enterprises has basically recovered to the same level as last year, but it has an impact on small catering enterprises. Zhu danpeng believes that hot pot is a very important social scene and has certain advantages in business recovery. Basically, what can be left behind after the epidemic situation has certain strength, either the brand strength is very strong, or the financial strength is relatively strong.
Xuehu capital increases its holdings again
In January this year, Xuehu capital announced that it would increase its holdings of Xiabu Xiabu again, with the latest shareholding ratio of 7.52%, which is the third largest shareholder of Xiabu.
In March 2016, Xuehu capital purchased Xiabu Xiabu shares for the first time. The latest total number of shares held by Xuehu capital after the increase was 81321000 shares, with the shareholding ratio rising to 7.52%. This is also the second time that Xuehu capital sold the shares after increasing its holding of Xiabu Xiabu in June 2019.
Sean Ma, founder and chief executive officer of snow lake capital, said that he chose to invest in Xiabu because of its brand advantages, professional management team, rich operation experience and complete supply chain. After experiencing a period of rapid rise driven by consumption upgrading, Chinas catering market has now exceeded 4 trillion yuan, showing strong performance. In the subdivided categories, the market scale of hot pot ranks first, far surpassing other categories. Source: China Foundation news Author: Wenjing editor: Wang Xiaowu_ NF
Sean Ma, founder and chief executive officer of snow lake capital, said that he chose to invest in Xiabu because of its brand advantages, professional management team, rich operation experience and complete supply chain. After experiencing a period of rapid rise driven by consumption upgrading, Chinas catering market has now exceeded 4 trillion yuan, showing strong performance. In the subdivided categories, the market scale of hot pot ranks first, far surpassing other categories.