Miokelanduo “playing chicken blood”

Wen| Zebra Consumption Model Construction

Yesterday, cheese leader Miokolando launched two incentive plans at the same time, hoping to achieve high growth for the company in the next three years through this method.

However, at present, the overall growth rate of the industry is slowing down and domestic and foreign counterparts are marching in large quantities. It is difficult to achieve Miokolanduo’s ambitious goals.

Therefore, in the face of outstanding performance figures, investors behaved extremely coldly. Yesterday, the company’s share price closed slightly down.

Give me a shot of chicken blood

Only by sharing the fruits of development with employees, especially core employees, can a company inspire the top and bottom to better contribute light and heat to the company.

Cheese leader Miokolando (600882.SH) finally understood this truth and vigorously promoted incentive measures.

Yesterday, the company also launched the “2025 Stock Option Incentive Plan (Draft)” and the “2025 Employee Stock Ownership Plan (Draft)”. The company’s management and hundreds of core employees will become shareholders of the company through different methods. In addition to wages, it is expected to receive greater benefits from the appreciation of stocks.

The stock source of the stock term incentive plan is the company’s targeted issuance of common shares to incentive recipients, with a total of 8 million shares. There are a total of 207 incentive recipients. Except for Chairman Chen Yiyi and General Manager Chai Xiu, all nine current senior executives of the company have received 100,000 awards; the remaining shares will be awarded to 198 core employees.

The exercise price of incentive plan stock options is 15.83 yuan/share, which is 80% of the average trading price of the company’s stock on the one trading day before the draft was announced. After the exercise conditions are met, the incentive object can purchase the company’s shares at a price of 15.83 yuan/share.

Compared with stock option incentives, Miokolando’s employee stock ownership plan is more attractive.

The company’s shares in this employee stock ownership plan come from past buybacks from the secondary market. From the end of 2021 to September 2022, Miokolanduo has repurchased a total of 10 million shares through centralized bidding transactions. The highest price is 62.99 yuan/share, the lowest price is 28.60 yuan/share, the average repurchase price is 48.85 yuan/share, and the total repurchase funds paid are 488 million yuan.

Participants in the employee stock ownership plan are the company’s directors, supervisors and core key personnel. The number of people at the time of initial establishment shall not exceed 209, and the number of shares held shall not exceed 8 million shares. Employees lucky enough to enter the program can buy back shares at a price of 9.90 yuan/share.

The company’s 11 directors and supervisors will all be divided into stocks of varying amounts, with general manager Chai Xiu having the highest share of 500,000 shares.

Since it is an incentive, conditions must be met. Both Miokolando plans set performance evaluation goals.

In terms of revenue, the cumulative revenue will not be less than 5.600 billion yuan in 2025; from 2025 to 2026, the cumulative revenue will not be less than 12.100 billion yuan; from 2025 to 2027, the cumulative revenue will not be less than 19.900 billion yuan.

At the level of parent net profit, the cumulative net profit in 2025 shall not be less than 210 million yuan; the cumulative net profit from 2025 – 2026 shall not be less than 530 million yuan; and the cumulative net profit from 2025 – 2027 shall not be less than 990 million yuan.

In the relevant announcement, Miokolando said that equal emphasis on revenue and profit indicators is to ensure the company’s quality growth and sustainable development. At the same time, this goal is also extremely challenging. Based on the median net profit forecast of the company’s 2024 performance forecast, the net profit of the 2027 performance assessment target is expected to be about 60% higher than the three-year compound growth rate in 2024.

Faced with the ambitious goals proposed by Miokolando, investors remained calm. At yesterday’s close, the company’s share price fell slightly by 0.55%.

entered a bottleneck period

Miokolanduo, formerly known as Guangze Co., Ltd., was listed in 2016 under the backdoor Hualian Mining. At that time, the company’s main business was specialty dairy products, milk powder, butter, etc., and its main products were cheese.

After listing, the company’s revenue scale continued to grow, but its performance fluctuated and remained tepid. If it accidentally deducted non-net profits, it would fall into a loss.

China people have achieved freedom to drink milk, which is the result of the rapid development of the dairy industry encouraged by national policies in the past decade. Cheese is an upgraded product of milk. It takes 10 kilograms of milk to make 1 kilogram of cheese. Therefore, the price is relatively expensive, and the market requires a cultivation process.

As early as 2015, Guangze entered the cheese food market by acquiring Miokolanduo (Tianjin) Food Technology Co., Ltd. and operated Miokolanduo brand products, but the scale was small and the brand awareness was not high.

After 2018, with the development of the domestic economy, residents ‘consumption levels generally increased, and the cheese industry suddenly broke out, maintaining double-digit high growth for four consecutive years.

Guangze shares followed the trend and changed its name to Miokolanduo in 2019, starting the first year of brand building. From 2018 to 2021, the company’s cheese business revenue continued to maintain a high growth rate of more than 60%, ranking first in China’s cheese industry.

Chai Xiu, the founder of the company, is well versed in marketing and leads Miokolan’s multi-purpose cheese bar products to focus on children’s groups. At the same time, he placed three-dimensional advertisements in various channels, quickly gaining brand awareness. The company’s market share in the domestic cheese industry exceeds 35%, and the share of cheese bars exceeds 40%.

However, in 2022, the high growth rate of the cheese industry came to an abrupt end. The following year, the overall decline in the industry came, and the revenue of Miokolando cheese also fell by 18.91% year-on-year. This year, the company’s revenue dropped sharply, and the parent’s net profit was halved.

In 2021, Miokolanduo will raise 3 billion yuan through targeted additional issuance and plans to invest it in cheese and specialty dairy processing projects in Shanghai, Jilin and Changchun to further increase its main business.

Unexpectedly, the industry trend suddenly changed, and Miokolanduo immediately slowed down its expansion.

By November 2024, the investment progress of investment projects in Shanghai and Jilin will be 75.92% and 68.59% respectively, while the Changchun project will only be 8.66%. The fundraising project was seriously delayed, and the exchange issued a special supervision work letter to express concern.

According to Miokolando, China’s cheese industry is still in its early growth stage, and there is a large gap between per capita consumption and countries such as Japan, South Korea, and the United States. There is still a lot of room for growth in the future. However, in order to cope with short-term changes in the external environment and prevent investment risks, the company actively controls the progress of production capacity construction.

In the next three years, the battle for cheese bar growth, the battle for adult breaking, and the battle for B-end breakthrough are the three major battles that Miokolando must win.

Mengniu’s actions

Miokolando’s cheese bars made their debut in the market and quickly attracted the attention of the industry. Dairy giants did not expect that while they were fighting hard in the traditional dairy market, a little giant would suddenly emerge from the cheese market segment.

At that time, the Chai Xiu family, the founder of Miokolando, was experiencing a financial crisis, and even the situation of non-operating occupation of listed company funds.

At the beginning of 2020, Mengniu entered as a strategic investor and transferred part of the original shareholder’s equity at a total price of 14 yuan/share to a total of 286 million yuan, becoming an important shareholder holding 5% equity of Miokelanduo.

Regarding Miokolando, Mengniu is unwilling to be just an investor. What it wants more is to quickly make up for its shortcomings in the cheese industry through this company.

In 2021, Mengniu invested 3 billion yuan to participate in the fixed increase of Miaokolando at a price of 29.71 yuan/share. At the same time, Chai Xiu and his concerted actions promised to give up the voting rights of the shares they held and transfer control of the company to Mengniu. Since then, Mengniu has successively invested in high levels to increase its holdings of Miokolanduo to further consolidate control.

As of September 2024, Mengniu holds a 36.63% stake in Miaokelanduo, and Chai Xiu and its controlled Dongxiu Commerce hold a total of 15.89%.

After Mengniu took over, it attached great importance to Miokolanduo. Lu Minfang, the former president of the company, personally served as chairman.

In June last year, Mengniu transferred its Mengniu cheese to Miokolanduo for 448 million yuan to solve the problem of competition in the industry and further consolidate Miokolanduo’s position in the cheese market.

In 2024, Miokolando has finally gradually emerged from the haze of previous year’s performance. It is expected that the net profit attributable to the parent for the whole year will be 90 million yuan to 130 million yuan, a year-on-year increase of 41.87% to 104.92%. However, this performance level has not yet returned to the company’s best time.