Good news after the limit rise!
On February 16, Anhui Golden Seed Winery Co.Ltd(600199) announced that the controlling shareholder would introduce strategic shareholder China Resources war investment, which attracted the attention of the industry. It is worth noting that in the afternoon of that day, Anhui Golden Seed Winery Co.Ltd(600199) closed the rising limit soon after the opening.
introduce strategic shareholder China Resources war investment
On February 16, Anhui Golden Seed Winery Co.Ltd(600199) announced that the controlling shareholder planned to introduce strategic shareholder China Resources war investment.
The announcement said that in order to promote the deepening reform and high-quality development of state-owned enterprises, Fuyang investment and Development Group Co., Ltd. (hereinafter referred to as “Fuyang investment and development group”), the sole shareholder of golden seed group, the controlling shareholder of the company, intends to transfer 49% of the equity of golden seed group to China Resources (Group) by non-public agreement in accordance with the measures for the supervision and administration of state owned asset transactions of enterprises (Order No. 32 of SASAC and the Ministry of finance, hereinafter referred to as “Order No. 32”) and other laws and regulations China Resources Strategic Investment Co., Ltd. (hereinafter referred to as “China Resources war investment”), a wholly-owned subsidiary of the company. Fuyang investment and Development Co., Ltd. and China Resources zhantou signed the equity transfer agreement on Anhui Golden Seed Group Co., Ltd. on February 16, 2022. After this transaction, the controlling shareholder introduced important strategic shareholders and the two sides conducted long-term joint venture cooperation.
It is reported that this equity transfer is a strategic reorganization between subsidiaries of central enterprises and local state-owned enterprises. It is proposed to adopt the method of non-public agreement transfer, which will take effect after being approved by relevant departments.
Anhui Golden Seed Winery Co.Ltd(600199) stressed that this equity transfer will not lead to the change of the controlling shareholder and actual controller of the company. The controlling shareholder of the company is still golden seed group, and the actual controller of the company is still the state owned assets supervision and Administration Commission of Fuyang Municipal People’s government.
In addition, this equity transfer will not lead to changes in the company’s main business, nor will it have a significant impact on the company’s main business and financial situation.
stock price limit in advance
In terms of share price, shortly after the afternoon opening on February 16, Anhui Golden Seed Winery Co.Ltd(600199) sealed the trading limit until the closing, with a trading volume of 606 million yuan and a net inflow of 235 million yuan.
For the obvious change in the stock price on the afternoon of the 16th, the investors of the stock bar blew the pot. Some people said that they called ” Anhui Golden Seed Winery Co.Ltd(600199) the return of the dragon head”, “the dragon head is really fragrant”, “the clouds have cleared and the fog has cleared, and they are firm in holding shares”. Some also thought that they might be suspected of insider trading.
2021 performance pre loss
“The West does not enter Sichuan and the east does not enter Anhui.” Baijiu Baijiu is one of the two famous liquor producing areas. Anhui’s unique geographical advantages have shaped many Baijiu brands. Anhui Golden Seed Winery Co.Ltd(600199) , a well-known liquor company, was successfully listed in 1998. It was not only the first listed liquor business in Anhui Province, but also 3 years earlier than Moutai.
However, compared with Maotai, which has a market value of more than 2 trillion yuan, Anhui Golden Seed Winery Co.Ltd(600199) has not made a big leap in its share price since its listing. The highest share price in history is 26.13 yuan / share, which was closed on February 16 and closed at 15.75 yuan / share. The latest market value is only 10.4 billion yuan.
Public information shows that Anhui Golden Seed Winery Co.Ltd(600199) has “liquor seeds”, “drunk three autumn” and “Yingzhou good wine” and other liquor brands, of which Anhui Golden Seed Winery Co.Ltd(600199) also has the reputation of “Baijiu four golden flowers”. It is reported that in the brewing workshop of Anhui Golden Seed Winery Co.Ltd(600199) industry, there are also seven ancient cellar sites of Zhengde period of the Ming Dynasty with a history of 500 years. It is one of the oldest existing cellars, the longest continuous use and the most complete preserved Daqu wine fermentation cellars in the Huang Huai area. In addition, the traditional brewing techniques of Zui Sanqiu have also been included in the provincial intangible cultural heritage list
source: golden seed official website
Despite its profound history, it is not bright in terms of performance. In terms of net profit attributable to the parent company, the company had a significant increase in 2018, from 8.19 million yuan in 2017 to 102 million yuan, an increase of 1144.09%. However, in the second year, it decreased magnanimously to – 204 million yuan, a year-on-year decrease of 300.71%. After that, it turned from loss to profit to 69.41 million yuan in 2020, a year-on-year increase of 69.41%.
According to the third quarterly report data of 2021 released by Anhui Golden Seed Winery Co.Ltd(600199) , the company’s main revenue in the first three quarters was 807 million yuan, up 21.58% year-on-year; The net profit attributable to the parent company was -144 million yuan, a year-on-year decrease of 37.36%; Deduct non net profit of -163 million yuan, a year-on-year decrease of 37.33%.
On January 29, Anhui Golden Seed Winery Co.Ltd(600199) issued the announcement of annual performance loss in 2021. In 2021, the company is expected to realize a net profit loss of 155 million yuan to 185 million yuan attributable to shareholders of listed companies. After deducting non recurring profits and losses, the company expects the net profit loss attributable to the shareholders of the listed company to be RMB 180 million to RMB 210 million in 2021.
For the reason of loss, Anhui Golden Seed Winery Co.Ltd(600199) said that the main reason is that the Baijiu liquor product structure is in the adjustment stage, the sales of the second high-end products are relatively low, and the gross sales margin is low. According to Anhui Golden Seed Winery Co.Ltd(600199) 2020 annual report, the company’s main business includes four parts: drugs, ordinary Baijiu, middle and high grade liquor and other businesses. The revenue of middle and high grade liquor is 25%, ranking third in the four main business, while the ordinary Baijiu contributes 86.81% of the profits.
It is worth noting that from the published data, the performance differentiation of listed companies of wine enterprises in 2021 is obvious. The performance of wine enterprises mainly engaged in high-end, medium and high-end is positive growth, of which Shede Spirits Co.Ltd(600702) net profit is expected to increase by 112% to 121% year-on-year. The liquor enterprises mainly engaged in low-end liquor suffered losses. Except for Anhui Golden Seed Winery Co.Ltd(600199) , Gansu Huangtai Wine-Marketing Industry Co.Ltd(000995) , Shanghai Jinfeng Wine Company Limited(600616) all suffered losses in advance.
In terms of the number of shareholders, as of the third quarter of 2021, Anhui Golden Seed Winery Co.Ltd(600199) had 127400 shareholders, which was lower than that in the second quarter.
In terms of investment rating, only one company has given a “recommended” rating in the past three months, with a consistent target price of 17.50 yuan.
Huarun has overall layout of Baijiu
Huarun, before entering Anhui Golden Seed Winery Co.Ltd(600199) , the most successful case of Baijiu liquor enterprises is Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) .
In February 2018, Fenjiu Group signed a share transfer agreement with China Resources venture, a subsidiary of China Resources Group. Fenjiu Group transferred its Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) 11.45% shares to China Resources venture holding company Huachuang Xinrui, with a total price of 5.16 billion yuan. Since then, Huachuang Xinrui has become Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) the second largest shareholder. According to the third quarterly report of 2021, the shareholding ratio of Huachuang Xinrui, the second largest shareholder, is 11.38%.
Since then, the performance of Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) Fenjiu has also started to grow steadily, with its revenue rising from 9.382 billion yuan in 2018 to 13.99 billion yuan in 2020. According to the Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) performance forecast, the company is expected to realize a net profit of 5.234 billion yuan to 5.542 billion yuan in 2021, an increase of 70% – 80% over the same period in 2020.
In terms of share price, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) has climbed all the way since 2018, with the highest share price at 380.77 yuan / share. As of February 16, it closed at 299.16 yuan per share, up 87% compared with the share price of about 40 yuan in February 2018.
In addition, the latest market value of Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) is about 365 billion yuan. According to the shareholding ratio, the market value of 11.38% shares of Huachuang Xinrui is about 41.5 billion yuan, more than 8 times the previous investment of 5.16 billion yuan.
In addition, last August, Huarun Jingjiu Baijiu liquor Holding Co., Ltd. and Affiliated Companies Jingzhi Liquor Co., Ltd., a wholly owned subsidiary of Affiliated Companies Huarun wine Holding Co. Ltd. and Shandong Jingzhi liquor industry Co., Ltd., held a strategic cooperation signing contract for investment matters in Shandong Weifang.
By February 16th, the official announcement of Anhui Golden Seed Winery Co.Ltd(600199) will be completed by Huarun Baijiu track.
Last year, Huarun CEO Hou Xiaohai said publicly that Huarun beer will explore and focus on the diversification of industries and products in the 14th Five-Year period after its completion of the 13th Five-Year targets. Baijiu will enter the liquor industry, including the liquor industry. “Baijiu” is not only the first choice in this strategy, but also the strategy of landing in 14th Five-Year.
From Fenjiu to Jingzhi, and then to the seeds of gold, Huarun group’s layout on beer and Baijiu double track is more and more complete. Whether we can recreate a snowflake in Baijiu road is still to be seen.
