The first domestic 10 billion packaging printing company - Hexing is ready to go II
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Of course, the value-for-money assets are not common, and the good fortune like Hexing is not common. After deducting non-recurring gains and losses, the net profit of Hexing dropped to 948.28 million yuan, an increase of 34.01%. The growth rate lags behind the revenue, indicating that its profit margin has declined. In fact, this is in line with the characteristics of companies in the rapid expansion period.
Why can Hexing open?
The issue of profitability is up to now. Next, Xiaobian wants to say: Why can Hexing run so fast? Or, what kind of driving force is there in the skyrocketing revenue boom?
Let's take a look at the revenue structure of Hexing. Hexing divides its business into two major segments: the packaging manufacturing industry and supply chain services, which immediately reminds people of its ambitious goal of “10 billion manufacturing, 100 billion services”.
From the first half of the year, the two business growth of Hexing is quite rapid. Among them, the “packaging manufacturing industry” achieved revenue of 3.625 billion yuan, a year-on-year increase of 62.22%, with an absolute increment of 1.390 billion yuan; “supply chain services” achieved revenue of 1.195 billion yuan, an increase of 287.41% over the same period of last year. It is 887 million yuan.
According to relevant information, “packaging manufacturing industry” refers to the production and sales of traditional Chinese carton, cardboard, buffer packaging materials and other products. “Supply Chain Service” refers to Hexing's Packaging Industry Supply Chain Cloud Platform (PSCP) and Intelligent Packaging Integration Service (IPS). The specific landing project is “Joint Packaging Network”.
According to the planning of Hexing, the goal of the “packaging manufacturing industry” is to achieve a manufacturing scale of 10 billion orders of magnitude through mergers and acquisitions on the basis of the original business. The “Industry Chain Service” section hopes to use the customer value mining as a means to integrate the packaging industry chain and achieve the goal of “100 billion services”.
According to Xiaobian's understanding, the basic operational logic of the joint packaging network is quite similar to that of some printed e-commerce companies: by assembling packaging orders and production capacity, connecting customers, packaging companies and suppliers of raw and auxiliary materials to form an industrial ecology, which plays its own role. It is the role of the trading and service platform.
In the first half of the year, the growth of Hexing's “packaging manufacturing industry” was basically consistent with its planned path: the steady progress of the original business and the business increase brought about by M&A expansion.
Among them, the acquisition contributed about 239 million yuan in revenue to Hexing. This is mainly from the five Hezhong Chuangya enterprises that completed the acquisition in the first half of the year, that is, the international paper industry's original carton business in China and Southeast Asia.
In the increase of 239 million yuan, Hezhong Chuangya (Asia), which is dominated by China's business, accounted for the vast majority, reaching 214 million yuan, while the total of 4 Southeast Asian companies was only 24,176,400 yuan. It should be noted that the semi-annual report of Hexing only merged the revenues of five companies from May 31 to the end of June, which was determined according to the completion time of the acquisition.
In addition to mergers and acquisitions, the “packaging manufacturing industry” of 1.151 billion yuan is due to the good performance of the original business of Hexing. This can be divided into two situations: one is the increase brought by the increase in sales volume, and the other is the increase caused by the price increase.
The former case is better understood, and the latter case is generally mentioned. In fact, in the two variables of sales and price, any upward change may bring revenue growth. Of course, the more ideal situation is that the price and price will rise.
In the past year or so, Hexing has basically been in a state of rising volume and price. Some brokers estimate that in the first half of 2018, Hexing's carton sales growth rate exceeded 25%, cardboard sales growth rate exceeded 50%, carton price growth rate was about 15%, and cardboard prices were basically flat.
For Hexing, the “supply chain service” that has just begun to take off in the last two or three years is obviously more interesting. From the clues revealed by the financial report, the current basic operation mode of this business seems to be like this: capital is used as a means to quickly integrate existing stocks such as orders and production capacity in the market.
For example, in the past year or two, Hexing seems to be continuously establishing joint ventures with different natural persons throughout the country. Among them, the most important operational logic may be: these natural persons have mastered certain customer, market or order resources, and cooperated to incorporate them into the system of listed companies, so as to quickly expand their mass and explore more businesses based on them. may.
Otherwise, it will be difficult to understand the incredible rapid growth of “supply chain services”: in 2016, revenues reached 229 million yuan; in 2017, year-on-year growth of nearly 400%, reaching 1.136 billion yuan; in the first half of 2018, year-on-year growth Nearly 300%, reaching 1.195 billion yuan, exceeding the full year of 2017.
This growth rate has generally only been seen in the Internet circle. Unexpectedly, it can also be realized in the printing circle.
Why is Hexing the first to rise?
A brief summary. In the first half of this year, the opening and closing growth of Hexing was mainly achieved through three methods: one is the increase in the volume and price of existing businesses, the second is the incremental expansion brought by mergers and acquisitions, and the third is the platformization based on resource integration. Radical.
Through these three methods, the scale of Hexing's revenue will exceed 10 billion in 2018. For example, a brokerage research report shows that in 2018, Hexing's annual revenue is expected to be 10.961 billion yuan; and some forecasts are 13.48 billion yuan. Anyway, no one is predicting to be under 10 billion.
The problem is: the three growth methods are not mysterious. Many bosses understand why only Hexing can take the lead in rising.
Part of the reason may be that the three modes are different in level, the characteristics are different, and the threshold is different.
For example, the expansion based on the scale of existing businesses is the most basic and stable growth method for enterprises. But when it comes to the boss, almost no one wants to develop more customers, get more orders, and make the company bigger and bigger. If you are lucky, catch up with the price increase cycle, it will be even better. Although, for the printing circle, the price has fallen every year, and the price increase is rare.
Relatively speaking, it is faster to make growth faster by acquisition, but not every company can afford it. Because I want to play with the acquisition, I can’t do anything with my ambitions, but I still have to get real money. At the very least, there must be sufficient channels of financing. As a veteran listed company that has been in the Shenzhen Stock Exchange for more than ten years, Hexing clearly has an inherent advantage in this regard.
As for the platform-based advancement based on resource integration, it was not common in the printing circle. In recent years, it has become increasingly popular with the rise of printed e-commerce. The benefit of this model is that the "ceiling" is high enough, but it is also the most difficult to operate.
Because the so-called "integration" is actually to tap the market stock, effectively aggregate the existing enterprises, orders, and production capacity in the market, use it for me, and derive new business possibilities.
The problem is: People do their own well, why should you play with you, be integrated by you? In the past year or two, many printing e-commerce companies targeting platformization have suffered frequent setbacks. One important reason is that they did not think clearly on this issue.
At present, it seems that Hexing adopts the practice of binding individuals or enterprises that have the resources in the form of a joint venture company. This is a big step forward compared to most of the printed e-commerce companies that call for the alliance. The problem is that this approach also needs to be supported by financial strength and has a high barrier to entry for potential integrators.
Of course, the reason why Hexing can play the three growth methods is the first to rise, not only because it is a listed company, the financing channels are smooth, the financial strength is strong, and it is also related to the market in which it is located.
To put it simply, Hexing's carton industry has two characteristics: First, product standardization is high enough, and there is little difference between enterprises, so it is easier to integrate; second, the market is large enough, and the annual sales scale is as high as three or four thousand. 100 million yuan. In such a market, whether it is mergers and acquisitions, or resource integration, it is relatively easy, and it is not a problem to accommodate one or two billion-level enterprises.
For Yutong, who is known for its boutique boxes, although funding is not a problem, it is much more difficult to achieve large-scale mergers and acquisitions within its existing products. Because: the same is to do the box, the mobile phone box and the cigarette box, wine box, pill box play, the routine is very different, blindly advancing, the potential risks will be great. Therefore, after the listing, Yutong, although constantly seeking opportunities for mergers and acquisitions, is relatively cautious in its operation.
Ok, it’s almost here. Xiao Bian finally wants to add: It is said that how to open and hang so many Hexing does not mean that the bigger the company, the better. The most important thing is to establish realistic development goals based on the company's own situation.
So, I wish you all the best for your boss!