\u3000\u3000 Wuliangye Yibin Co.Ltd(000858) (000858)
Matters:
Recently, the company issued the announcement of the Fifth Board of directors. Mr. Li Shuguang, the former director and Mr. Zou Tao, the former vice chairman and general manager of the company resigned due to job changes. After their resignation, Mr. Li Shuguang and Mr. Zou Tao no longer held other positions in the company. The board of directors of the company elected Mr. Jiang Wenge as the vice chairman and appointed him as the general manager.
Guosen Food & Beverage view: 1) the board of directors changes smoothly, the management makes a smooth transition, and the new growth of endogenous extension can be expected; 2) The Spring Festival in 2022 has made a good start, with steady overall sales and stable annual performance growth; 3) Investment suggestion: the company operates steadily, the management is expected to be optimized, and the growth and certainty are both. In the short term, the company’s inventory, price and movable sales remain benign, and the Spring Festival has made a successful start, laying the foundation for the annual performance; In the medium and long term, after the change of the core leadership of the company, the management efficiency is expected to be improved, the executive power is expected to be enhanced, and the structure of Wuliangye Yibin Co.Ltd(000858) and series liquor products will be continuously upgraded. We estimate that the company’s operating revenue from 2021 to 2023 will be 66.63/77.38/88.75 billion yuan, the net profit attributable to the parent company will be 23.57/27.79/32.51 billion yuan, the corresponding diluted EPS will be 6.07/7.16/8.38 yuan, and the corresponding current share price PE will be 33 / 28 / 24x, maintaining the “buy” rating.
Comments:
The board of directors has been successfully changed, the management has made a smooth transition, and the new growth of endogenous extension can be expected
Recently, the company announced that due to job changes, Mr. Li Shuguang applied for resignation from the company’s director and relevant special committees under the board of directors, and Mr. Zou Tao applied for resignation from the company’s director, vice chairman and general manager. After resignation, Mr. Li Shuguang and Mr. Zou Tao no longer held other positions in the company; At the same time, Mr. Jiang Wenge, a director of the company, was elected as the vice chairman and appointed as the general manager. The term of office is the same as that of other senior managers. In addition, according to Weijiu, the main responsible comrades of Wuliangye Yibin Co.Ltd(000858) group company have also been adjusted: Mr. Zeng Congqin is the Secretary and chairman of the Party committee of the group company and the Secretary and chairman of the Party committee of the joint stock company; Zou Tao served as Deputy Secretary of the Party committee and general manager of the group company. So far, Wuliangye Yibin Co.Ltd(000858) the core team of the new management team has been established and a smooth transition has been realized. The new management has profound qualifications, rich experience in economic and industrial fields, has worked in Wuliangye Yibin Co.Ltd(000858) for many years, and is quite familiar with the industry and the company, which is expected to bring new endogenous and external changes to the company. The market had some concerns about the company’s development direction and brand operation strategy, which significantly reduced the company’s valuation. After the company’s management adjusted the boots, a major factor that suppressed the company’s valuation in the early stage is expected to be removed.
The Spring Festival of 2022 has made a good start, with steady overall sales and steady growth of annual performance
Combined with channel feedback, the proportion of Wuliangye Yibin Co.Ltd(000858) dealers’ payment collection and delivery before the Spring Festival is about 40% and 30%. During the Spring Festival, Wuliangye Yibin Co.Ltd(000858) is still a hard currency, with fast dynamic sales and stable price. The wholesale price of puwu is about 970-980 yuan, and the dealer’s inventory is about 20-30 days. At the end of last year, the company raised the price of puwu, 1618, classic Wuliangye Yibin Co.Ltd(000858) and other main products. The cost price of puwu dealers rose to 969 yuan. Coupled with the channel feedback, the mobile sales of terminals have been relatively smooth. It is expected that the price of puwu will be further improved and time will change space. Considering that the dealers have implemented the new price for payment during the Spring Festival in 2022, which has ensured the steady growth of the company’s revenue and profit in the first quarter, and the volume of superimposed classic Wuliangye Yibin Co.Ltd(000858) and group purchase channels has been steadily promoted, the company’s performance in 2022 can still be expected.
Investment suggestion: the company operates steadily, the management is expected to be optimized, the growth and certainty are both, and the “buy” rating is maintained
In the short term, the company’s inventory, price and movable sales remain benign, and the Spring Festival has made a good start, laying the foundation for the annual performance; In the medium and long term, after the change of the core leadership of the company, the management efficiency is expected to be improved, the executive power is expected to be enhanced, and the structure of Wuliangye Yibin Co.Ltd(000858) and series liquor products will be continuously upgraded. We estimate that the company’s operating revenue from 2021 to 2023 will be 66.63/77.38/88.75 billion yuan, the net profit attributable to the parent company will be 23.57/27.79/32.51 billion yuan, the corresponding diluted EPS will be 6.07/7.16/8.38 yuan, and the corresponding current share price PE will be 33 / 28 / 24x, maintaining the “buy” rating.
Risk tips
Macroeconomic risks; Demand for high-end wine was lower than expected.
