\u3000\u3 Shengda Resources Co.Ltd(000603) 076 Ningbo Lehui International Engineering Equipment Co.Ltd(603076) )
Channels and production capacity accelerated, and the company’s own brand “fresh beer 30km” achieved a major breakthrough
Optimize the business expansion platform of the company and keep the interaction with the investors at the same time. We believe that the company’s channels and production capacity are now in a state of accelerated promotion, and the fresh beer business has achieved a great breakthrough.
Channel: according to our grassroots research, the company’s own brand has entered the catering chain system such as Fengmao kebab and buerjun Sichuan cuisine. The new product “raspberry wheat”, which the company cooperates with HEMA, is currently the exclusive national supply. And once launched, the supply exceeds the demand, becoming the top 1 in the new wine list of HEMA system.
In terms of production capacity: the company currently has factories with a total production capacity of 13000 tons / year in Ningbo and 3000 tons in Shanghai. Wineries in Changsha, Chengdu, Nantong, Nanjing and other places are also in the state of preparation. It is expected that the company’s annual production capacity is expected to increase significantly in the second and third quarters of this year.
The expansion of independent brand operation is accelerated, and the brand of “fresh beer 30km” will enter the accelerated introduction period
Offline channels: according to our grassroots research, the company’s “30km liquor station” has opened more than 10 stores in Shanghai, and more than 10 are in the state of decoration, which has successfully entered the mode replication stage; “30km fresh beer restaurant” takes “community pub” as the core positioning, and four stores have been opened in Shanghai. The company has signed strategic cooperation agreements with Suzhou light store and Xi’an light store for its liquor station business; Fresh beer restaurant business and Hangzhou Weiyu liquor signed a strategic cooperation agreement for Hangzhou market development. We judge that the company’s liquor stations and pubs are about to enter the accelerated introduction period, the process of off-site expansion is accelerated, and the volume is imminent.
Online shopping mall: the online part of the company’s 30 km business of fresh beer is currently covered by WeChat’s small program “tiktok 30 km” mall, Taobao store and Tmall flagship store, and the jitter shop is also preparing. The company attaches importance to the construction of private domain traffic. Quarterly card, annual card and blessing bag membership system are self built and self operated strategies.
Equipment sector is at a record high in hand orders, and Baijiu equipment has become a new growth point.
Equipment sector: the company’s equipment business grew well. In the third quarter of 2021, 540 million yuan of new orders (including tax) and 1.99 billion yuan of orders on hand (including tax), an increase of 10.9% over the end of the second quarter, the highest in history. As a new business in 2021, Baijiu equipment has become a new growth point. As of October 2021, the company has obtained Wuliangye Yibin Co.Ltd(000858) , Luzhou Laojiao Co.Ltd(000568) , Sichuan Swellfun Co.Ltd(600779) , Jiugui Liquor Co.Ltd(000799) and other orders totaling more than 400 million. We expect that the growth rate of the company’s equipment business in 2022 will be higher than the average level in recent years.
Profit forecast and valuation
It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 100 / 160 / 320 million respectively, with a growth rate of – 9% / 64% / 100%, corresponding to 47 / 29 / 14 times of PE, maintaining the “buy” rating.
Risk warning: the epidemic situation affects the demand; The sales of fresh beer and fine brewed beer projects of independent brands were less than expected
