Zhao Chen immediately picked up the phone, flipped to Chen Xi's number, and dialed it.
"Chen Xi, come to my office."
Two minutes later, Chen Xi opened the door and came in.
She was wearing a dark blue suit jacket, holding a notebook in her hand, her hair tied back, looking smart and neat.
"Zhao Zong, what's the matter?"
Zhao Chen pointed to the sofa. "Sit down. Help me check a company."
Chen Xi sat down and opened the notebook.
"Shunxin Agriculture," Zhao Chen said,
"A-share Listed Company. The main business is Baijiu and pork. The Baijiu brand is 'Niba Mountain Erguotou', and the pork brands are 'Xiaodian Breeding Pigs' and 'Pengcheng Meat Products'."
Chen Xi remembered quickly, raised his head and asked, "Zhao Zong, do you want to invest in this company?"
Zhao Chen leaned back on the chair and thought for a while.
"Let's take a look first. Mr. Cheng just mentioned that this company is also entering Live Pigs breeding, and its scale is not small.
And I have the impression that Niba Mountain Erguotou has been highly accepted by the market in recent years and may be underestimated."
Chen Xi nodded. "I'll check right away."
In less than an hour, Chen Xi came back.
She was holding a stack of printed information in her hand, and her expression was a little more excited than usual.
"Zhao Zong, found it. This company is quite interesting."
Zhao Chen took the information and motioned her to sit down and speak slowly.
Chen Xi Open the first page.
"Let's talk about the management first - Spring Festival, Shunxin Agriculture has just completed a high-level adjustment."
Zhao Chen's fingers paused on the table for a moment.
Chen Xi continued:
"The original Chairman Wang Ze and director Wang Liyou resigned.
The newly nominated director candidate is named Li Yanlin, who is currently the deputy secretary and manager of the party committee of Shunxin Group; there are also Li Qiusheng and Qin Long.
At the same time, An Yuanzhi was appointed as the general manager. He was previously the deputy general manager and secretary to the board of directors and is familiar with the operation of capital markets."
She paused and turned to the next page.
"This time point is selected after Spring Festival, indicating that there may be action at the Shunxin Group level.
A brokerage research report mentioned that Shunxin Agriculture has previously reported the State-owned Assets Operating Company plan to State-owned Assets Supervision and Administration Commission. After the adjustment, it may operate at the Shunxin Group level, similar to a 'small state-owned capital', and it will have great autonomy."
Zhao Chen's eyes narrowed slightly. "What does it mean to have great autonomy?"
Chen Xi said, "Investment, mergers and acquisitions, and equity incentive authority will be decentralized. And--
This plan involves employee stock ownership, mixed-ownership reform, market-oriented operations and incentives, and management stock ownership will be considered.
If implemented, Shunxin Agriculture's system will undergo fundamental changes."
Zhao Chen did not speak, but his hand did not knock on the table.
Chen Xi turned to the next page, and there was a hint of excitement in his voice.
"Then there is the Baijiu business. Niba Mountain Erguotou, the market research data is very beautiful."
She handed over a printed form.
"Although the first quarter report has not been released yet, several brokerages have done channel research.
Taken together, the market generally expects Baijiu business revenue to grow between 35% and 40% in the first quarter.
If this growth rate can be maintained, Shunxin Agriculture's overall revenue growth in the first quarter may exceed 3%, but the net profit growth rate will be much higher than the revenue growth rate--
Because the proportion of Baijiu business with high profit margin is increasing rapidly."
Zhao Chen took the form and scanned it quickly.
Revenue growth has been steady and net profit has increased significantly - this Scissors Gap shows that the high-margin Baijiu business is rapidly replacing other businesses with low profit margins.
This is a typical signal of a qualitative change in the quality of the enterprise.
Chen Xi continued, "And the advance receipts are very high. Baijiu Industry has a saying that advance receipts are a reservoir of income.
Brokerage research shows that advance receipts at the end of last year reached about 3.7 billion.
Although the first quarter has not yet been disclosed, channel feedback is that sales are very good, and the water level in this reservoir is only high but not low.
The advance receipts of 3.7 billion are equivalent to more than 30% of last year's annual revenue. This level ranks at the top among Baijiu Listed Company."
Zhao Chen Turn to the next page, which is a map of nationwide layout.
Chen Xi points to the mark on the map.
"Nibashan's pan-national layout began in 2013.
By Spring Festival this year, a billion-yuan market has been formed in 18 provincial-level regions including Hebei, Inner Mongolia, and Jiangsu.
According to channel research feedback, the market growth rate of Yangtze River Delta exceeds 70%, and the growth rate of emerging markets such as Fujian and Xinjiang exceeds 50%."
She paused and added:
"A securities firm wrote a paragraph in the research report after Spring Festival--
'With the withdrawal of competitors, the company's main product, aging wine, has shown a clear acceleration trend in low-end Baijiu in many regions, bringing great pressure to low-end Baijiu such as Lao Cunzhang and Black Land.'"
Zhao Chen Turn to the last page, which is a summary table of securities firm surveys.
Chen Xi said, "After Spring Festival, several securities firms intensively issued research reports on Shunxin Agriculture.
Guosen Securities said 'low-end Baijiu leader is accelerating its growth', Dongxing Securities said 'performance is expected to exceed expectations', BOCI said 'Volkswagen wine king, Baijiu long-distance running champion'.
The general view is that the low-end Baijiu market is clearing out at an accelerated pace, and Nibashan, as the leader, has continued to increase its market share.
Moreover, its product positioning is very clear, it is to make 'folk wine', not 'famous wine'.
A bottle of Erguotou costs more than ten yuan, and ordinary people can afford it. The channel has been deeply penetrated and the terminal distribution rate is extremely high."
Zhao Chen put down the document and leaned on the back of the chair.
He strings together several key pieces of information in his mind - the management will be adjusted after Spring Festival, the new coach has capital market experience, the state-owned assets operation plan may be implemented, employee stock ownership and mixed ownership reform are expected;
In the first quarter, Baijiu business market research growth rate was 35%-40%, and advances received remained at a high level;
The low-end Baijiu market is being cleared, and Nibashan is the biggest beneficiary. The market share continues to increase, and competitors are squeezed out.
Chen Xi looked at him, waited for a while, and couldn't help but ask, "Zhao Zong, what do you think of this company?"
Zhao Chen smiled. "Interesting."
He stood up, walked to the window, and looked at Shan City outside the window.
The March sun shines through the clouds and shines on the river in the distance.
He remembered what Cheng Jiaxun said on the phone - "Shunxin Agriculture and Animal Husbandry is also entering Live Pigs breeding."
But what he is thinking about now is not raising pigs.
What he was thinking about was that a bottle of Erguotou, which costs more than ten yuan, could be sold for nearly 10 billion a year. Sales of Yangtze River Delta had a 70% growth rate, opening up a market worth 2.2 billion yuan across the country.
The market is still staring at its pork business and its real estate business, thinking it is just a ragtag team that engages in slaughtering and Baijiu.
But it's not.
It is the real king in the low-end Baijiu market, but it has not been fully discovered by the market.
Zhao Chen turned around and looked at Chen Xi.
"Continue to follow up. Compile the Financial Report in the past three years, all brokerage research reports, and data on competing products in the industry.
Give me a full report after Thursday Board of Directors."
Chen Xi nodded. "Okay. Then I'll go and get busy."
She stood up and walked to the door, suddenly stopped and turned around.
"Zhao Zong, are you going to take action again?"
Zhao Chen looked at her and did not answer directly. "Read the report first. Then we will talk after reading it."
Chen Xi smiled, opened the door and walked out.
She knew that Shunxin Agriculture was probably the next target.