Hong Kong Stock Market Review: A stock explosion!
A review of the Hong Kong stock market shows that Nongfu Spring is facing market pressure. Despite relying on growth in tea beverages in the first half of the year, intensified competition and public opinion have impacted the company's image, and the moat is not as strong as expected. On the other hand, Haidilao's core operating profit increased by 13%, benefiting from an increase in table turnover. In contrast, Meituan's Q2 performance exceeded expectations, especially in new business performance, and the company conducted a large-scale share repurchase. Overall, the consumer industry faces significant challenges, while pressure in commercial real estate is becoming evident
Nongfu Spring also encountered a stumble, the consumer track can be said to have no safe haven.
The company's growth in the first half of the year was mainly driven by tea drinks, but the sugar-free tea track is becoming more competitive. No one wants to miss out on this healthy sugar-free trend. For example, Master Kong and Uni-President have successively launched new products in the first half of the year. Master Kong's sugar-free tea series is very comprehensive, with prices of 3 yuan, 4 yuan, and 6 yuan.
Nongfu Spring's advantage lies in its distribution channels, but a public opinion incident has shaken its foundation, and the moat is not as deep as expected. Moreover, it is questionable how much of the impact comes from public opinion and how much comes from the low-priced green bottled water. Unless more compensation is given in terms of valuation and shareholder returns, it is still somewhat lacking at the moment.
On the other hand, in the catering track, Haidilao recently announced good data, with core operating profit increasing by 13%. This is mainly due to the table turnover rate increasing from 3.3 to 4.2, while the Average Selling Price (ASP) decreased from 102.9 yuan to 97.4 yuan.
Haidilao's strength is largely based on rental advantages, with related expenses accounting for about 1% of revenue during the period. Considering the significant pressure that the catering industry is currently under, it is believed that the pressure on commercial real estate will also continue to increase.
Finally, in comparison to many stumbling companies, Meituan's Q2 performance is quite impressive, with revenue and profits exceeding expectations. Especially in new businesses, revenue grew by 28.7% and segment operating losses narrowed by 74.7%. There is a high probability that Xiaoele Supermarket performed well, similar to Xiaomi, making it the best quarterly report since its listing. At the same time, the company repurchased 220 million shares in the first half of the year, spending 23.3 billion yuan, and is likely to increase the amount again