After all, even the leading stationery companies have failed in their list of lebanon whatsapp phone numbers to break the profit barrier of stationery. The confidence of the market and investors in M&G has been shaken, and it is not surprising that the stock price has continued to fall.
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When we take a closer look at the business categories in Morning Glory's financial report, excluding other products, its main businesses include four categories: writing tools, student stationery, office stationery and office direct sales.
Source: M&G's 2024 third quarter report
The report shows the performance of business products from the beginning of this year to the end of the third quarter. Among them, "student stationery" was the main business of Morning Glory Stationery at the beginning. It contributed 16% of the revenue with a data performance of 2.757 billion yuan, and accounted for the highest proportion among the three major tool products.
However, even for such a core business, the revenue growth rate has almost stagnated, with only a slight increase of 0.5%.
Although the revenue growth rate of writing tools and office stationery was significantly higher than that of student stationery, the rising operating costs led to a year-on-year decline in gross profit margin. The gross profit margins of student stationery and office stationery decreased by 0.85% and 0.51% respectively. Only writing tools achieved a 0.9% increase in gross profit margin.
The remaining office direct sales business has become the bulk of Morning Glory's current revenue, accounting for nearly 60% of its revenue with 9.157 billion yuan. It is also the main driving force for its revenue growth, with the year-on-year revenue growth rate reaching 10.07%, the highest among the four products.
Although "office direct sales" carries the banner of revenue, its gross profit margin is the lowest among all businesses. The actual gross profit margin is only 7.12%, and the gross profit margin once again showed a year-on-year decline of -0.46%.
Traditional old businesses are stuck in the quagmire of increasing revenue, while the office direct sales business, which is the largest source of revenue, has extremely low profit margins. This has directly affected the overall profitability of Morning Glory Holdings, and it has fallen into a vicious circle of increasing revenue but not profits in recent years.
