Market-oriented reforms such as equity incentive are the necessary guarantee for the high-quality development of industrial enterprises
In order to achieve the deep binding of employees and enterprises’ interests and to stimulate the enthusiasm of key employees, we will provide necessary guarantee for the development of enterprises’ quality. Following the Jiangsu Yanghe Brewery Joint-Stock Co.Ltd(002304) and Sichuan Swellfun Co.Ltd(600779) ‘s Sichuan Swellfun Co.Ltd(600779) plan in September 30th, the Luzhou Laojiao Co.Ltd(000568) incentive plan was approved in December 3rd, marking the continuous promotion of the market-oriented reform of the incentive system in the Baijiu industry. There are also many cases of market-oriented incentive reforms such as mixed reform of state-owned enterprises, employee stock ownership plan, equity incentive and cash incentive in the industry, such as Wuliangye Yibin Co.Ltd(000858) , Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) , Shede Spirits Co.Ltd(600702) , Tsingtao Brewery Company Limited(600600) , Inner Mongolia Yili Industrial Group Co.Ltd(600887) , etc. The top-level design of the national reform system ensures the mixed reform of industrial enterprises Implementation of the incentive plan: (1) on June 30, 2020, the three-year action plan for state-owned enterprise reform (2020-2022) was reviewed and approved by the central deep reform commission. Shanxi, Anhui, Sichuan, Jiangxi and other places quickly followed the “action implementation plan” for entering and leaving Taiwan to deepen the reform mission, timetable and road map. (2) opinions on promoting high-quality development of manufacturing industry in Sichuan on July 20, 2020 In February 24, 2021, Sichuan province’s letter office proposed some measures to promote the development of Baijiu industry in Sichuan (Draft).
Accelerating the supply side reform to ensure the upgrading of demand side is the inevitable requirement of the high quality development in 14th Five-Year. According to the National Bureau of statistics, (1) Baijiu sales have been stable, and in 2019, 755.53 thousand liters, with a decrease of 11.6%, and a decrease of 2.5% to 740.7 thousand litres in 2020. (2) sales revenue of Baijiu Enterprises above scale has increased steadily. In 2019, 561 billion 800 million yuan increased by 8.24%, and increased by 4.61% to 583 billion 639 million yuan in 2020. (3) total profits showed “high quality”. , 140.41 billion yuan in 2019, an increase of 14.54% and 13.35% in 2020, reaching 158.541 billion yuan. The trend of structural prosperity of Baijiu concentrated and strongly differentiated is unchanged. Based on the potential expectation of institutional reform on the improvement of business efficiency, a new round of growth cycle is expected to open.
Beer enterprises are profit oriented, comply with the high-end trend, and the equity incentive of food enterprises is closely linked to the growth target and looks forward to high growth
China’s beer industry has transitioned from the first stage of large-scale competition of “quantity” to the second stage of competition of “price”. According to the data of the National Bureau of statistics, the sales volume peaked at 49.854 million kiloliters in 2013 and decreased to 34.11 million kiloliters in 2020. From 2013 to 2020, the ton price increased from 3639 yuan to 4306 yuan, and the high-end trend of the industry is significant, Tsingtao Brewery Company Limited(600600) equity incentive is guided by profit assessment; The profit target of dairy products leader Inner Mongolia Yili Industrial Group Co.Ltd(600887) is stable and Shanghai Milkground Food Tech Co.Ltd(600882) strives to rapidly expand market share; In condiment industry, Jonjee Hi-Tech Industrial And Commercial Holding Co.Ltd(600872) , Jiangsu Hengshun Vinegar-Industry Co.Ltd(600305) repurchased shares are intended to be used for equity incentive; Many enterprises in the snack food industry will repurchase shares in 2021, plan to implement employee stock ownership and equity incentive, and have a positive outlook for the future; In the quick freezing industry, Fu Jian Anjoy Foods Co.Ltd(603345) , Zhengzhou Qianweiyangchu Food Co.Ltd(001215) enjoy the industry development dividend and promote equity incentive in order to maintain high growth.
Investment advice
The reform of system and mechanism and the establishment of salary marketization system are conducive to the improvement of management efficiency. Based on the basic framework of “brand” + “good business” (profit model) + management efficiency, pay attention to the companies with the release of reform potential, and recommend Luzhou Laojiao Co.Ltd(000568) , Shede Spirits Co.Ltd(600702) , Jiangsu Yanghe Brewery Joint-Stock Co.Ltd(002304) , Fu Jian Anjoy Foods Co.Ltd(603345) .
Risk statement
Macroeconomic fluctuations beyond expectations lead to damage to the demand side, sporadic outbreaks, control beyond expectations, food safety problems, and the implementation of equity incentive plan is not smooth
