Dongpeng Beverages is a company that has been quietly making a fortune.
In the first half of this year, Dongpeng Beverages (605499.SH) achieved a revenue of 7.87 billion yuan, a year-on-year increase of 44.2%; net profit was 1.73 billion yuan, a year-on-year increase of 56.2%. Looking solely at the second quarter, the net profit was 1.07 billion yuan, a year-on-year increase of 74.9%.
Moreover, its profitability has been getting stronger year by year.
From 2020 to 2023, the net profit margins of Dongpeng Beverages were 16.4%, 17.1%, 16.9%, and 18.1%, respectively. In the first half of this year, this figure stood at 22%. To put it in perspective, in terms of profitability, Dongpeng Beverages has already approached that of Coca-Cola.
In addition to this, the company is also very generous in terms of dividends.
After a three-year hiatus, Dongpeng Beverages once again distributed dividends in the middle of the year, amounting to 1 billion yuan, which is more than half of the net profit. Since its listing in 2021, Dongpeng Beverages has cumulatively distributed 4 billion yuan in dividends, which is twice the net profit of the same period.
It is not an exaggeration to say that, in terms of profitability, performance growth, and dividend distribution, Dongpeng Beverages is a high-growth value stock.
In fact, the growth potential of Dongpeng Beverages is even more outstanding than what the financial reports indicate.
The core product of Dongpeng Beverages, "Dongpeng Special Drink," had a sales revenue of 6.855 billion yuan in the first half of the year, a year-on-year increase of 33.5%. However, the sales proportion decreased from 94.13% of the same period last year to 87.19%. This means that the growth of other businesses of Dongpeng Beverages is even more rapid.
Specifically, the sales revenue of the electrolyte beverage "Dongpeng Rehydration" was 476 million yuan in the first half of the year, a year-on-year increase of 281.1%, and the sales proportion increased from 2.29% to 6.05%. In addition, categories such as "tea beverages," "coffee," "fruit juice," and "plant protein beverages" are also continuously increasing their share in the company's revenue.Before 2022, Dongpeng Beverages was a functional beverage company, but now, it has gradually grown into a comprehensive beverage group company. In particular, the "Dongpeng Rehydration" launched in 2023 immediately became a major product for Dongpeng Beverages and was recognized by consumers.
It is also necessary to mention the nationalization strategy of Dongpeng Beverages.
For a long time, Dongpeng Beverages was limited to the Guangdong region, with the market share from Guangdong once reaching 60%. However, this situation has changed.
From 2021 to 2023, the revenue share from the Guangdong region was 45.85%, 39.43%, and 33.39% respectively. In the first half of this year, this figure was 26.9%. That is to say, although Guangdong is still the largest regional market, Dongpeng Beverages has now bloomed comprehensively, especially in the North China and Southwest markets, where the growth rate is far higher than the company's average growth rate.
In a word, today's Dongpeng Beverages is no longer a regional company, but a truly national company.
When it comes to Dongpeng Beverages, this company is also very legendary.
In the earliest days, Dongpeng Beverages was a state-owned beverage factory, mainly producing herbal tea and water beverages, but it was on the verge of bankruptcy due to poor management. In 2003, Lin Muqin, who was in charge of the sales business of Dongpeng Beverages, took over the company through privatization.
The real transformation occurred in 2009.
In this year, Dongpeng Beverages began to focus on the functional beverage market, to put it bluntly, it was "copying" Red Bull. Even the most classic advertisement of Red Bull was changed by Dongpeng to "Tired and sleepy, drink Dongpeng Special Drink."
Some people may say that the success of Dongpeng Beverages relies on copying and plagiarism. It's not really the case. You should know that after Red Bull popularized functional beverages, the functional beverage brands sprouted like bamboo shoots after a rain, and the market competition was very fierce. For example, in 2012, Wahaha launched a functional beverage brand "Qi Li"; in 2013, Dali Group launched a functional beverage brand "Le Hu".It should be noted that in terms of both popularity and corporate strength, these two companies are far superior to Dongpeng Beverages. However, Dongpeng Beverages has emerged as the last one to laugh. According to NielsenIQ data, in 2023, Dongpeng Special Drink's market share in the Chinese energy drink market increased from 36.7% in 2022 to 43%, ranking first.
The reason for this is that over the past decade, Dongpeng Beverages has not only continuously innovated at the product level but has also achieved excellence in various aspects such as supply chain, channels, and marketing.
Of course, Dongpeng Beverages, which has become the "top dog" in domestic functional beverages, cannot say that it is now free from worries.
On one hand, the functional beverage track is becoming increasingly competitive, with giants like Coca-Cola and Yili also having their own strategies. On the other hand, although "Dongpeng Rehydration" is growing rapidly, it mainly relies on the rapid increase in the number of channels, and there is still a process of being accepted by consumers in the terminal market.
In addition, Dongpeng Beverages also faces a challenge, which is the exploration and layout of the global market.
Take the first half of the year as an example, Dongpeng Beverages' revenue from overseas markets was only 14.81 million yuan, which is almost negligible. However, Dongpeng Beverages should hold a more ambitious dream, and the overseas market is a must to conquer. At present, relying on the success in the domestic market, Dongpeng Beverages may attempt to expand into the Southeast Asian market.