Arowana Q4 ‘s parent net profit was 1.07 billion yuan, the best in the fourth quarter since its listing

On the evening of February 20, Arowana released its 2024 annual performance report. During the reporting period, the company expects to achieve operating income of 238.866 billion yuan, total profit will increase by 7.05% year-on-year to 3.656 billion yuan, and achieve a net profit attributable to the parent company of 2.502 billion yuan. It is worth mentioning that Arowana’s net profit attributable to its parent company in the fourth quarter reached 1.071 billion yuan, a year-on-year increase of 49%, and a month-on-month increase of 220.19%, setting the best level in the fourth quarter since the company went public.

Arowana said that the sales volume of the company’s two major business segments, kitchen food, feed raw materials and grease technology, increased compared with last year. Among them, the sales volume and profits of kitchen food in the catering and food industry channels increased, and the sales volume of feed raw materials products achieved double-digit growth., the profits of products extending the oil technology industry chain have also increased.

Looking back on 2024, in the face of a complex and ever-changing market environment, Arowana closely focuses on the goal of high-quality development of the grain, oil and food industry, accelerates the cultivation and development of new quality productivity, solidly conducts various businesses, and demonstrates a stable and upward development trend. and corporate vitality.

Steadily expand the international market, Arowana rice oil goes global

As a quality representative of China’s grain and oil industry, under the wave of globalization, Arowana has steadily expanded into the international market with its excellent product power. In June last year, Arowana held an overseas distributor conference in Bangkok, Thailand. Dealers from the United States, Canada, Australia, Japan, South Korea, the Philippines, and China Macao gathered together to explore a new blueprint for sailing with Arowana. This is not only the partner’s high recognition of Arowana, but also demonstrates the Arowana’s determination to speed up the sea.

In December 2024, Guweiduo Rice Oil, a subsidiary of Arowana, was officially sold in more than 200 stores in Costco in the United States. This is not only the first grain and oil brand from China origin introduced by Costco to North America, but also the world’s first rice oil brand to be introduced by Costco in China and the United States. It has become an important milestone in the internationalization of China’s grain and oil industry. Rice oil has been blank in the edible oil market in China for a long time. After nearly three years of R & D investment, thousands of trials and process improvements, Arowana has successfully broken through the technical bottleneck of rice oil processing and refining, and developed Arowana Guweiduo rice oil with high nutritional value. In 2018, Arowana Valley Vido Rice Oil entered the Japanese market and landed in the North American market in 2019, becoming a China brand that successfully entered the North American edible oil market.

Relying on the complete industrial chain structure and the global layout of its parent company Wilmar International, Arowana continues to meet the needs of overseas users with continuous category innovation. For example, the popular domestic arowana noodles have been exported to more than 10 countries and regions; Shanxi vinegar, soy sauce, sesame oil and other condiments have also appeared on the tables of people in Africa and the Middle East. It is reported that in recent years, Arowana products have achieved astonishing growth in overseas markets. The number of SKUs has soared from 63 in 2020 to 250 in 2023. Currently, the products have been exported to 24 countries and regions including North America, Australia, and Africa., gradually achieving global market coverage.

With the continuous expansion of the global market, Arowana has continued to increase its brand recognition and market share in the global grain and oil industry with its distinctive characteristics and outstanding value. This is not only a strong proof of China’s quality in the international market, but also a microcosm of China’s food going global.

Actively embrace the cutting-edge needs of consumers and seize the development opportunities of the big health industry

With the rapid development of the economy and society and the continuous improvement of people’s living standards, consumers ‘demand for the food industry continues to increase. They not only pay more attention to eating safely and conveniently, but also need to eat healthily and nutritionally. Higher standards have been set for the quality, safety and health benefits of food.

As a new productivity in the food industry, a new model of the central kitchen ecological industrial park built by Arowana is accelerating. The park attracts many central kitchen processing enterprises and upstream and downstream enterprises in the industrial chain to settle in the park. It is equipped with refrigeration and room temperature storage facilities and shares various resources such as raw material procurement, experimental research and development, product warehousing, logistics and transportation, and sales channels. It can be realized without leaving the park. The full chain business from agricultural product processing to food production. With the arrival of cooperative enterprises, Fengchu Park has been gradually put into operation in many cities such as Hangzhou, Kunshan, Xingping, Zhoukou, Langfang, Chongqing, and Shenyang. Central kitchen products such as bento, sauces, cooked food, and local snacks have been successively launched in supermarkets., convenience stores, catering stores and e-commerce channels, leading the new trend of modern catering.

On the other hand, against the background of the continuous deepening of the Healthy China strategy and the continuous upgrading of consumer demand, Arowana actively participates in the development trend of the big health industry with a forward-looking strategic vision to meet the people’s pursuit of a better life. With scientific and technological innovation as the engine, the company continuously increases investment in research and development, promotes the transformation and development of the big health industry, and combines the concept that traditional medicine and food have the same origin and food maintenance are good doctors, and has launched a series of foods that are in line with modern health concepts.

Through green precise and moderate processing technology, Arowana has achieved a breakthrough in that the trans fatty acid content in edible oil is 0; based on the rice circular economy model, a six-step fresh rice precision control technology has been explored to ensure the freshness and nutritional value of rice. In response to the needs of specific groups of people, such as patients with cardiovascular disease, arowana extracts lecithin and plant sterols that can lower blood lipids and cholesterol, antioxidant vitamin E, and zero-trans-fatty acid edible oil from vegetable oil; For obese people, new edible oils have been developed that can provide energy but do not grow fat; in addition, there are also low-GI products such as buckwheat, highland barley, and oats that are specially eaten by diabetics and the elderly.

In the future, Arowana will welcome the new era of the big health industry with a more proactive attitude, continue to deeply explore the potential of the big health field, and continue to launch more high-quality and healthy foods to contribute to national health.

Consumer demand continues to recover, securities companies are optimistic about profit repair

Data released by various national departments show that during the Spring Festival just past, domestic retail, catering and other fields showed strong growth trends. According to statistics from the China Hotel Association, bookings by catering companies across the country increased by 25% year-on-year during the Spring Festival, especially for New Year’s Eve dinners. The prefabricated vegetable market experienced explosive growth during the Spring Festival, with sales increasing by more than 50% year-on-year, becoming a new favorite of catering consumption.

The recovery of the consumer market during the Spring Festival not only reflects the recovery of consumer confidence, but also demonstrates the positive role of policies in promoting the consumer market. The 2024 Central Economic Work Conference puts vigorously boosting consumption, improving investment efficiency, and comprehensively expanding domestic demand at the top of its key tasks, and makes a series of specific arrangements for expanding domestic demand, reflecting the country’s great importance to expanding domestic demand.

Looking to the future, driven by the continuous strengthening of policy support and the increasingly diversified consumer demand, the domestic consumer market will continue to maintain growth. Huatai Securities Research News believes that under the recent stimulus of a series of policies, downstream consumption may improve to some extent in 2025. As a typical pro-cyclical target, Arowana’s existing business is expected to benefit from improved downstream demand and downward costs. Profits are released by the difference in scissors.

As the effect of the country’s policy of expanding domestic demand emerges, Arowana will seize favorable development opportunities, continue to focus on food and agricultural product-related businesses, further expand investment and cooperation in China, and provide consumers with richer, diversified, more nutritious and healthier high-quality food to achieve long-term sustainable development.