The internet celebrity restaurant "Tai Er sauerkraut fish " that foodies are familiar with will soon meet investors in the capital market!
"No reception when dining for more than four people", "No table matching, no extra seats", "Sauerkraut fish no takeout"... Who would have thought that with these strange and "second" overbearing store rules, a restaurant that only sells sauerkraut fish can achieve its ultimate goal.
has a revenue of 500 million yuan in half a year, an operating profit margin of up to 23%, and its stores have expanded to hundreds in three years. The "Tai Er" that has become popular on the Internet has even prompted the parent company Jiu Mao Jiu to successfully IPO. According to the listing schedule, catering brand Jiu Mao Jiu will be officially listed in Hong Kong on January 15.
has its own Internet celebrity physique and an amazing turnover rate. Jiu Maojiu, which has its brand "Taier Pickled Vegetable Fish", has attracted the participation of many investors. During the Issuance period, Jiumao Jiu International's subscription was 600 times more popular, which is comparable to the Haidilao of that year.
has been hotly discussed in the market, and the next "Haidilao" is about to be born. Referring to the stock price that has doubled since Haidilao's listing, it is really curious how the stock price will perform in the future.
Jiu Mao Jiu successfully went to Hong Kong for listing
Once tried to sprint A shares
Because he brought the internet celebrity brand "Tai Er" to list in Hong Kong, Jiu Mao Jiu International has gained the attention of the capital market and investors since the submission of the prospectus.
public information shows that Jiumao Jiu Group was originally an old catering company established in 1995 and operated Northwest Noodle Restaurant. In 2009, the founder Guan Yihong realized the dividends of the rise of shopping malls and completed the upgrade of Jiumao Jiu brand to "fast fashion catering", which became the core strategy of the rapid development of this catering group.
On August 28 last year, Jiumaojiu Catering Group submitted a prospectus to the Hong Kong Stock Exchange, intending to IPO on the Hong Kong main board.
Currently, Jiumao Jiu International has five brands, namely Jiumao Jiu, Taier sauerkraut fish, 2 egg pancakes, Sichuan cold pot skewers "shou" and fine Cantonese cuisine "Uncle Wei is the chef". Opening Jiu Maojiu's prospectus is simply a menu full of delicious food.
According to the data disclosed by Jiumao Jiu International in its prospectus, the company currently operates 287 restaurants and manages 41 franchise restaurants, covering 39 cities in China, covering 15 provinces and four municipalities directly under the central government. Among them, there are 143 Jiumao Jiu Restaurants and 121 Tai Er Restaurants.
In 2015, Jiu Maojiu established the brand of "Tai Er" sauerkraut fish, and soon this company that produced a single hit product exploded with amazing growth capabilities. Data shows that from 2016 to 2018, for three consecutive years, the compound annual growth rate of "Tai Er" sauerkraut fish reached 182.3%. In the first half of 2019, Tai Er achieved revenue of 538 million yuan, a year-on-year increase of 146.8%; the proportion of contributing revenue jumped from 5.8% to 43.5%, becoming an important pillar of performance growth of Jiu Mao Jiu.
With the rise of "Tai Er" sauerkraut fish, Jiu Maojiu's performance growth in recent years has increased by leaps and bounds, with total operating income increasing from 1.164 billion yuan in 2016 to about 1.893 billion yuan in 2018, with a compound annual growth rate of 27.5%. The company's adjusted net profit also exceeded the 100 million yuan mark for the first time in the first half of last year, reaching 116 million yuan.
It is worth noting that before the listing of Hong Kong stock , Jiumaojiu Catering Group tried to impact A-shares. In 2016, Jiu Maojiu submitted an A-share listing application to the China Securities Regulatory Commission. In 2018, due to the extended overall A-share review process and uncertain listing schedule, Jiu Mao Jiu withdrew his A-share listing application.
Some analysts pointed out that the main reason for Jiu Maojiu's failure to hit A-shares is that it has poor financial conditions with the help of excessive capital expansion. This is because from 2013 to 2015, Jiumao Jiu's net profit was RMB 27.66 million, RMB 43.9 million and RMB 31.05 million, respectively, and the net profit growth rates in 2014 and 2015 were 58.68% and -29.26%, respectively.
Internet celebrity "Tai Er" floods the social circle
amazing turnover rate kills Haidilao
However, what makes friends curious is what magic it is that makes a restaurant called "Tai Er" and claims to only sell pickled fish the core brand of a quasi-listed company?
The key may be that "Tai Er" has seized the current fashion trend of catering: pickled fish and alternative experiences.
As consumers gradually improve their quality requirements, dining experience and environmental style have become important indicators for foodies to score restaurants. "Taier sauerkraut fish" relies on the minimalist food, highlighting that "sauerkraut is better than fish" and a bit alternative store rules attract the public's attention.
According to Frost & Sullivan's data, based on revenue in 2018, Tai Er ranks first among all pickled fish restaurants in China. From 2018 to 2024, China's sauerkraut fish catering market revenue is expected to grow at a compound annual growth rate of 33.7%, and will reach 70.5 billion yuan by 2024.
On Weibo, there were almost positive reviews of Taier sauerkraut fish. Some netizens said: "There is nothing that cannot be solved by one meal of Taier sauerkraut fish. If there is, then two meals."
With the support of foodies, Taier's growth rate is amazing. Data shows that the operating profit generated by the Taier brand increased from 2016 to 97 million yuan in 2018, with a compound annual growth rate of 118.0%. In the first half of 2019, Taier achieved operating profit of 125 million yuan, an increase of 155.7%. In terms of operating data, Tai Er currently has 121 stores nationwide, mainly distributed in central, east and south China. The overall turnover rate of stores rose from 3.6 in 2016 to 4.9 in the first half of 2019, and 5.0 in the same period last year. Except for the stores in new first-tier cities, the turnover rate of stores in other tier cities has basically stabilized at more than 4.0 in 2017, and the turnover rate of stores in first-tier cities has stabilized at more than 5.0 after 2018. What makes investors feel extremely moved is that "Tai Er" has two indicators that are close to Haidilao. First, the turnover rate; second, the store break-even cycle.
It is reported that in the first half of 2019, the turn rate of Taier Pickled Fish was as high as 4.9 times, while the turn rate of Haidilao during the same period was 4.8 times. The newly opened Taier Pickled Fish Store can break even in just one month on average, and the average cash investment recovery cycle is also (a single store investment of about 2.5 million yuan) and only 7 months. Both data are very close to Haidilao.
"Tai Er" development gave Jiu Mao Jiu confidence in development. Jiu Mao Jiu said that in order to further increase market share, the company will penetrate its business into emerging markets such as first-tier cities, new first-tier cities, provincial capital cities and surrounding cities. In 2020 and 2021, 18 and 20 Jiumaojiu restaurants will be opened respectively; 80 and 100 Taier restaurants will be opened. It can be seen that the focus of future development is "Tai Er pickled fish".
Meituan Dianping Comment "2018 Pickled Vegetable Fish Market Development Report" points out that the pickled Vegetable Fish category is still in a period of high growth rate. The annual growth rate in 2018 was 63.6%. The number of searches for sauerkraut fish category on mobile phones exceeded that of braised chicken in 2018, and far higher than the boiled fish, which are also Sichuan menu items.
This also means that the future market space of Jiu Mao Jiu and "Tai Er Pickled Vegetable Fish" is still worth looking forward to.
Jiu Maojiu will be listed on Hong Kong stocks next week
is expected to exceed 600 times oversubscribe
With its super high popularity in the foodie circle, Jiu Maojiu International has quickly attracted the attention of the market and investors during the IPO stage.
According to Jiu Maojiu's previous announcement, the Hong Kong stock IPO plans to issue 333.4 million shares, of which 10% of the Hong Kong offering, 90% of the international offering, and another 15% of the over-allotment equity, with an issue price of HK$5.5-6.6 per share.
Although there are many new stocks in the Hong Kong stock market recently, Jiu Mao Jiu is still the target of capital pursuit. It is reported that the full name of Jiumao Jiu is very popular during the IPO period. Some sources predict that Jiumao Jiu will record more than 600 times oversubscription during the public offering stage, with frozen funds exceeding HK$140 billion, and the subscription of Futu Securities alone reached HK$11 billion. However, judging from such a situation of over-subscription, the winning rate of Jiu Mao Jiu may hit a new low.
There are also market news that Jiu Mao Jiu) plans to price at the upper limit of the IPO price range. The company's IPO price is between HK$5.5 and HK$6.6 per share, and plans to issue 333.4 million shares, raising up to HK$2.2 billion.
It is reported that the popularity of Jiu Maojiu's subscription this time is comparable to the situation of Haidilao back then. It is also an internet celebrity store, a catering company recognized by consumers, and its business model can be said to be "textbook-level". Therefore, Jiu Maojiu's prospectus has been highly recognized by the market.
A private equity person who has participated in multiple Hong Kong stock IPO subscriptions said that the quota of each brokerage firm is short and the shares can not be obtained. "Before the IPO, many people began to inquire about the 90-9 quota, but the share in the brokerage firm is not enough. In addition, the winning rate may not be high, so the space for expected returns for new stocks will be narrowed."
However, some people believe that even if they only won one lot, referring to the previous cases of IPOs in the Hong Kong stock market, the profit sold on the first day of listing can still be enough to allow a family of three to eat 5 meals of Taier sauerkraut fish, of course, the premise is "willing to wait for the place."
It is understood that Jiu Mao Jiu introduced four cornerstone investors this time, including asset management companies BlackRock, ChinaAlpha, WT and Oriental Asset Management, with a total investment of US$55 million. The exclusive sponsor of the IPO is China Merchants International, and the joint global coordinator and joint book manager are China Merchants International and CICC.
The next "Haidilao" is coming?
How long can Taier sauerkraut fish be eaten
Because Jiu Mao Jiu and Haidilao have similar internet celebrity temperaments, they also have excellent growth ability to catch up with Haidilao, many investors are optimistic about Jiu Mao Jiu's performance after its listing. How much valuation of Jiu Mao Jiu can reach in the future is a hot topic of attention in the market.
Before Jiumaojiu, well-known catering companies Xiabu Xiabu and Haidilao were listed one after another and gave good market performance. Especially Haidilao. In the more than a year since its listing, Haidilao's stock price has been rising, with an increase of more than 100%.
At present, Haidilao's stock price has risen to HK$34.05, with a market value exceeding HK$180 billion. This also makes investors look forward to the future market performance of Jiu Maojiu, especially the "Tai Er" brand.
But whether Jiu Maojiu can replicate Haidilao’s success and become the next bull stock in the catering industry is still worth observing.
Futu Securities analyst Qin Zhongjie said that the tracks of Jiumao Jiu and Haidilao are still quite different. Haidilao is a major cuisine mainly based on hot pot, while Jiumaojiu focuses on northwestern cuisine and pickled fish, and the audience is relatively small compared to hot pot. As for the supply chain, Jiu Maojiu's ingredients mainly come from third parties, while Haidilao has a relatively mature self-built supply chain.
Market insiders believe that although Jiumaojiu Restaurant still contributed more than 50% of its revenue to Jiumaojiu, the overall performance growth rate and operating data of the group have shown signs of fatigue. In 2017 and 2018, the revenue growth rate of Jiumaojiu Restaurant was 10.16% and 10.88% respectively. In addition, the turnover rate of Jiumaojiu Restaurant has also declined.
In terms of national regional layout, it is questionable whether Tai Er, which focuses on the single product of "sauerkraut fish", can continue to run wildly with Jiu Mao Jiu. Many voices believe that large-scale expansion across the country and meeting the tastes of different regions is a test for Jiu Mao Jiu's future. At present, Jiumao Jiu's store openings are still concentrated in South China, with obvious regional characteristics. In the future, the market potential of East China, especially Jiangsu, Zhejiang and Shanghai, will be greater, with different tastes and fierce competition. Taier's high growth may not be guaranteed.
Huachuang Securities is optimistic about the further expansion of "Tai Er" sauerkraut fish as the leader in sauerkraut fish catering. Huachuang Securities said that "Tai Er" is currently laid out in a good category, and with the expansion of stores and good reputation, it gradually forms a brand, which is in line with the characteristics of Internet celebrity stores with development potential. The supply of sauerkraut fish ingredients is stable, the taste acceptance is high, and differentiated tastes are easily formed due to different sauerkraut fermentation technology; the store can achieve standardization and de-chef through unified ingredients in the central kitchen, which is suitable for chain large-scale expansion.
Whether the "second Haidilao" can be born successfully? The answer may need to wait until Jiumaojiu is truly listed before it can be seen.
This article is from China Fund News
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