Is Tang Yan Dairy Company Worth Holding for a Long Time?

Tang Yan dairy industry is worth owning for a long time. In terms of quality, Tang Yan dairy industry has always enjoyed a good reputation. However, if price and other factors are taken into account, the competitiveness of Tang Yan dairy industry may not be comparable to that of big brands such as Yili and Mengniu. Guangdong Tang Yan Dairy is a listed company directly under Guangdong Agricultural Reclamation Bureau, engaged in research and development, production and sales of dairy products, milk drinks and other products. The whole industrial chain has a complete layout, covering all upstream and downstream links such as dairy farming, product processing and terminal sales. The upstream resources of the company are controllable, and its own pasture relies on Guangdong Agricultural Reclamation, so the quality of milk source is guaranteed. Cooperative pasture implements intensive milk source acquisition mode, and the supply relationship is stable. Guangdong has a developed economy, low consumption of dairy products and great potential for future development. The company's development goal is to "intensively cultivate Guangdong, look at South China and go to the whole country".

Tang Yan dairy brand has a history of more than 60 years. It is an old brand in the dairy industry and has a high reputation. Tang Yan pays attention to product differentiation, forms local advantages, attaches importance to product development, and its R&D investment is increasing year by year. In fact, the competition in dairy industry is also very simple and clear. Consumers only care about nutritional quality, taste, price, convenience and brand culture. In business competition, dairy enterprises are nothing more than quality, innovation, cost, channels and brand marketing. This is a one-to-one correspondence. The most prominent of these core elements is excellent quality. As a non-leading enterprise, Tang Yan dairy industry is not strong in innovation ability, channel ability is not weak in proportion to its scale, and its brand reputation is good, but its marketing ability is insufficient, and its biggest weakness is cost. In the market observation, we can find that the price of Tang Yan dairy industry is obviously high, such as the most comparable kind of pure milk at room temperature. Tangyan pure milk is almost the highest among dozens of mainstream brands in China, more expensive than Yili and Jindian, and similar to Mengniu. However, from the financial performance, the brand reputation of Tang Yan dairy industry has not been transformed into profit, while the high price of Tang Yan is only due to the high cost.

For a long time, the annual production capacity of dairy industry in Tang Yan has been above 654.38 million tons. Starting from 20 1 1, it is planned to build a production base with a daily output of 600 tons, that is, an annual output of 200,000 tons, to replace the original old production capacity. In 20 14, the company went public to raise project funds, but for various reasons, the new production capacity was not put into use until 20 18. In the seven-year development of dairy industry, Tang Yan dairy industry has already possessed a certain production capacity. The growth of many enterprises is overdrawn, but the growth of Tang Yan dairy industry is very low. Once the production capacity is released, the growth momentum may be very strong. Simply quantify, after doubling the production capacity, the profit can almost double. It is reasonably predicted that the annual net profit of the company will increase to 250-300 million yuan within 3-5 years without increasing production capacity.