Dragon Big meat is hidden risk

Shandong Dragon Meat Food Co., Ltd. (hereinafter referred to as the Dragon's Big flesh) recently disclosed the prospectus.　　But some investors believe that the company's hidden problems, or will lead to its future development there is a certain risk. Dragon is exposed to sell fake tender beef dragon meat Since its inception, has been engaged in the production and processing of a variety of meat products, eggs and pig slaughtering business.　　For companies in the food industry, product quality and food safety are like life. However, as early as in October 2011, Qilu Network has exposed long big food sales fake beef event: a consumer in Qingdao, a supermarket to buy dragon beef, but the tender beef is completely inconsistent with the standard.　　For the reasons for the failure of tender beef, sales staff did not explain clearly, and finally only by the manufacturers to apologize to consumers. In addition, there are other foods in the Dragon system that also have safety problems. December 2011, Shandong Bureau of Quality Supervision announced the fourth quarter of 2011 production and processing of food products supervision and inspection unqualified results, Yantai Longyuan Oil Food Co., Ltd. production of "Dragon Big" brand edible oil unqualified.　　Data show that Yantai Longyuan oil food for "long large vegetable oil" wholly-owned subsidiary, with the Dragon meat as the "Dragon Big Group" holdings. Market analysts say food safety is a big "mine" as a quasi-listed company for food. Investors have scruples about this, so the investment of such listed companies cautious, not rashly entered.　　In this way, the future price of dragon meat may be affected. Long-large meat three consecutive years of performance comparison year operating income net profit growth rate of 2009 1.478 billion Yuan 84.7872 million yuan 16.82% 2010 2.036 billion Yuan 108 million yuan 28.43% 2011 2.167 billion yuan 117 million yuan 3.02% performance growth decline or be sold Volume impact as a quasi-listed companies, Dragon Meat's performance growth has worried investors.　　Prospectus data show that 2011 Dragon meat business income of 2.167 billion yuan, net profit of 117 million yuan, the year-on-year growth of only 3.02%. Dragon Meat said that the 2011 revenue growth rate is lower than the price of pork raw materials affected.　　But analysts say the drop in sales may be a key factor in the decline in performance. Data show that cold meat, frozen meat and cooked food products are the main source of income of dragon meat, over the past three years accounted for the proportion of more than 98%. Statistics show that three kinds of products in 2011 sales year-on-year contraction.　　And 2011 years of growth in operating income, mainly thanks to the rise in pork prices. A brokerage analyst believes that companies with volatility in their performance will be worried about whether their future performance can continue to grow. Second, the value of the company will certainly not be dug in depth, the value of investment will also let the market underestimate.　　Investors, for their part, are wary of investing to avoid risk.　2011 Major product sales decline and price increases category sales decline price increase　Cold meat 14.25% 42.77% frozen meat 45.64% 36.6% cooked food products 1.95% 16.68% Enterprise Capital abundant market is suspect circle money is well-known, the main purpose of listing is to solve the problem of lack of funds.　　Dragon Meat, however, is not short of money, and its short-term borrowings and inventories are declining every year. From this point of view, the enterprise is not lack of funds.　　However, in the case of such a tight listing qualification, Dragon Meat is spared no effort to compete for listing, and the aim is clearly for funding. Financial experts pointed out that the enterprises do not lack of money to expand reproduction can rely on their own funds to solve. The IPO is now a huge sum of money, but there is no real use for it. In order to go public to make up some of their own also do not know whether there is investment benefits of the project, and the regulator to raise money and tube tight, earmarked, so these funds have two kinds of outcome: one is lying in the bank for a long time to sleep; Whatever the outcome, it will lead to a much lower return on capital than the cost of financing. Wen/journalist Wang Yang long large meat prospectus disclosure of funds in the year 2009 2010 2011 Asset Liability Ratio 23.85% 21.14% 11.61% currency capital 71.974 million yuan 239 million yuan 300 million yuan short-term borrowings 98.802 million 81.902 million yuan 0 yuan inventory ratio 36.09% 24.97% 12.92% Dragon Large meat offering the year 2009 2010 2011 The Asset liability ratio 23.85% 21.14% 11.61% The Monetary Fund 71.974 million 239 million yuan 300 million yuan short-term borrowings 98.802 million yuan 81.902 million RMB 0 Yuan inventory accounted for 36.09% 24.97% 12.92%