Anjoy food(603345)2024-01-05 07:38Product Strategy and Positioning - Anjoy Food's Anjoy Kitchen focuses on chicken-based prepared foods and skewers, with both product lines performing as expected in 2023 [1] - Frozen Master targets the pre-made meal sector, focusing on hotel dishes and hotpot ingredients, with plans to develop a flagship hotpot series [1] - The company plans to extend its supply chain and cultivate the beef and lamb category, leveraging synergies with existing water-based products [1] - Anjoy Food aims to develop high-growth, large-category products, such as innovative fish/chicken/pork-based items for the grilling channel [3] Market Competition and Profitability - Price competition in rice and flour products has intensified since Q2 2023, but Anjoy Food maintains cost advantages and market position [2] - The company plans to increase promotional efforts and market spending to maintain market share without sacrificing profitability [2] - Net profit margin is closely tied to raw material costs, with product mix optimization and high-end product growth helping maintain gross margins [2] - The company expects to benefit from the trend of premiumization in hotpot ingredients for home consumption [2] R&D and Production Strategy - Anjoy Food implements a "local R&D, local sales" strategy, with successful regional products like fish cakes and meatballs in Central China [3] - The company plans to expand localized R&D in South China, Northeast China, and Southwest China [3] - Production capacity is being expanded nationwide, with new facilities in Guangdong, Shandong, Henan, and Hubei scheduled for 2024 [4] - The company is transitioning from outsourcing to in-house production for some products, such as glutinous rice chicken and crispy pork [3] Channel Development and Customization - Anjoy Food is strengthening its presence in the barbecue, oden, and hotpot channels through existing distributors [4] - The company is adapting to channel fragmentation by expanding its special channels department and establishing a new retail department [3] - Customization for large B clients will be further developed, with plans for product series and different SKUs for various channels [2] - The company maintains close relationships with distributors through monthly meetings to jointly develop markets [4] M&A and Investment Strategy - Anjoy Food follows three principles for M&A: shared values, industrial complementarity, and synergistic growth [3] - The company is cautious about acquisitions, seeking targets that align with its frozen food and pre-made meal expertise [3] - Investments are focused on strategic projects with good valuations and potential for synergy [3] Cost Management and Capacity Expansion - Raw material costs (chicken, pork, oils, soy protein, packaging) have decreased, with prices expected to remain stable in the short term [4] - The company is exploring futures markets to reduce costs and improve efficiency [4] - Production capacity is being expanded systematically, with new facilities in Liaoning, Guangdong, Shandong, Henan, and Hubei scheduled for 2024 [4]