Global King of Caviar: Xunlong Sci-Tech uses supply barriers to lock in high profits and is driven by two wheels at home and abroad (Goldman Sachs)
Xunlong Sci-Tech (6715.HK) is the global caviar leader, controlling 36% of the global market share.
Xunlong Sci-Tech (6715.HK) is the global caviar leader, controlling 36% of the global market share. The company adopts an integrated business model covering the entire life cycle of sturgeon, with 90% of its revenue coming from caviar. It is expected that both revenue and net profit will increase by 15% year-on-year in 2026, with long-term gross profit margin stable at 65-70% and net profit margin as high as 45-50%. Overseas is the mainstay of sales, and the domestic market is in the early stages of branding and shows signs of recovery. The market may regard it as an ordinary food company, but the long maturation cycle of sturgeon constitutes extremely high supply barriers. Combined with its astonishingly high net profit margin, it is essentially a consumer luxury company with an extremely high moat. One-sentence conclusion: Xunlong Sci-Tech is a luxury goods company "disguised" as a food stock. Its core moat is its near-monopoly supply and astonishing profitability. Its branding in the domestic market is its largest source of valuation flexibility. Positive/negative: Positive for Xunlong Sci-Tech (6715.HK). The company's stock price may reflect its stable fundamentals, but it has underpriced the revaluation brought about by domestic branding (Kaluga Queen store plan). Catalysts: 1) The opening progress and sales of Kaluga Queen brand stores; 2) Growth data of the domestic caviar consumer market; 3) Whether the response measures to tariffs and cost fluctuations are effective.