Wuliangye Yibin Co.Ltd(000858) (000858)
Event: Recently, Wuliangye Yibin Co.Ltd(000858) held a 12.18 dealer conference. The company said that the business indicators in 2021 were more than expected. In 2022, it will continue to strengthen consumer cultivation and improve Wuliangye Yibin Co.Ltd(000858) market position. At the same time, the company has strengthened its support, wider coverage and more scientific indicators for the evaluation of dealers this year.
1、 Business indicators in 2021 exceeded expectations
We expect that the company’s sales revenue, market share, product dynamic sales and other marketing indicators will be completed more than expected in 2021, providing strong support for the smooth realization of the 14th five year plan. The company’s brand status was further improved. In the “top 50 most valuable spirits brands in the world in 2021” released by the global authoritative brand value evaluation agency “brandfinance”, Wuliangye Yibin Co.Ltd(000858) ranked second and 3a with an increase of 23.5%; Among the 500 most valuable brands in China, it rose 2 places year-on-year with an increase of 14.6%, ranking 17th.
In terms of product structure, Wuliangye Yibin Co.Ltd(000858) product system has been continuously improved and the series liquor product system has become more focused. The company cleared and returned 7 main brands, 509 products, and the number of brand products was reduced by 80%. It was more obvious to focus on self owned brands, medium and high price brands and high-quality brands. In terms of channel construction, optimize traditional channels, expand emerging channels and improve the group purchase network. The company provided grid services to 30000 terminals, including 5300 newly increased quality terminals, 1600 optimized low-quality terminals, 665000 series wine terminals, a year-on-year increase of + 52.5%, and promoted the integration of Wuliangye Yibin Co.Ltd(000858) and series channel supply chain. In addition, the company has a group buying network covering 30000 enterprises across the country, and has carried out special expansion and growth in 8 advanced markets and 14 provincial key markets.
2、 In 2022, we will continue to strengthen consumer cultivation and improve Wuliangye Yibin Co.Ltd(000858) market position
The company’s marketing work in 2022 will focus on five aspects. First, continue to strengthen consumer cultivation. The company will speed up the construction of Wuliangye Yibin Co.Ltd(000858) cultural experience pavilions in key cities, and plans to build 10 new cultural experience pavilions and put them into use next year; Focus on the 8th generation Wuliangye Yibin Co.Ltd(000858) and classic Wuliangye Yibin Co.Ltd(000858) , and strengthen publicity; Continue to do the customized development of enterprise exclusive group purchase. Second, continue to improve Wuliangye Yibin Co.Ltd(000858) market position. With the tight overall supply and scarce resources, Wuliangye Yibin Co.Ltd(000858) will continue to consolidate the eighth generation Wuliangye Yibin Co.Ltd(000858) price with large single products, and make the price of 2 thousand yuan bring the Baijiu market. Through optimizing and perfecting 1+n+2 channel mode, we will strengthen the market cultivation and realize the market breakthrough of classic Wuliangye Yibin Co.Ltd(000858) . Third, continue to meet the consumer demand of the new era. The company will enrich cultural customized products and cultivate low consumption market to meet the new consumption trend of the new generation. Fourth, continue to promote the upgrading and development of a series of wines. The company will focus on building four national strategic products: wuliangchun, wuliangchun, wuliangtequ and Jianzhuang, take regional key brands and general distribution brands as collaborative supplements, optimize the relationship between volume and price, promote the double improvement of brand value and market scale of series liquor, ensure the effective improvement of dynamic marketing plan, and make every effort to build large single products of 1 billion, 2 billion, 3 billion and 5 billion. Fifth, continue to build a Wuliangye Yibin Co.Ltd(000858) community of common destiny. The company will accelerate the transformation from “management” to “enabling” and “service” teams.
3、 In this year’s dealer evaluation, the support is stronger, the coverage is wider, the guidance is clearer and the indicators are more scientific
This year’s evaluation shows four characteristics. First, the total amount of market support increased significantly. This year, the total amount of market support reached 820 million yuan, a year-on-year increase of 36.7%; 77% of dealers have received market support, which has increased significantly. Second, the coverage of market support has expanded. A total of 2279 award-winning dealers were selected this year Year on year increase of 630 (+ 38.2%), Wuliangye Yibin Co.Ltd(000858) There are award-winning dealers in the marketing theater and the marketing area of series wine, and there is no blank area. In addition, the restriction that only one year of cooperation can participate in the evaluation, and only three years of cooperation can select higher awards has been cancelled, resulting in 262 new award-winning dealers. Third, the orientation of market support is more clear. The company focuses on supporting dealers who contribute to public relations group purchase, incremental share, brand development, etc. Fourth, the assessment indicators are more scientific. The company no longer takes the purchase amount as the only assessment indicator, but comprehensively evaluates the contribution value of dealers in combination with multiple dimensions such as total purchase amount, average purchase price of single bottle, purchase amount of new products, dynamic sales and consumer cultivation. Among them, the average purchase price of single bottle and cash collection ratio are used for the first time. In the assessment of this star award, the incremental share of Wuliangye Yibin Co.Ltd(000858) section and the assessment index weight of classic Wuliangye Yibin Co.Ltd(000858) purchase amount have increased; In the series of wine sections, self owned brands have added the assessment index of single bottle average price, and the total distribution brand will only assess the total purchase amount this year.
Profit forecast and rating:
The company’s forecast industry trends continue: first, growth logic is strong, consumption upgrading and urbanization upgrading support the structural growth of Baijiu industry. Second, Baijiu Baijiu consumption demand is strong, Baijiu social attributes have irreplaceable, especially high-end liquor. Third, Baijiu will have a strong tendency to concentrate on quality brands, quality producing areas and high-quality production capacity. Leading enterprises and quality brands will continue to share the dividends of structural growth in the industry. Therefore, the company will focus on the promotion of high-quality market share, accelerate the construction of a new manufacturer relationship of symbiosis and common prosperity, highlight cultural construction and consumption cultivation, strengthen supply chain stability, channel transformation and market expectation, and ensure the full realization of stable and progressive new development.
Chairman Li set the tone for the company’s development of “taking the lead in stability and seeking progress in stability” to ensure the quality of development. We expect that the company will continue to maintain high-quality double-digit growth next year. The eighth generation Wuliangye Yibin Co.Ltd(000858) will drive the increase of ton price through the increase of unplanned price and proportion, and boost the further increase of wholesale price and actual transaction price of consumers. Continue the promotion of the strategic focus “classic Wuliangye Yibin Co.Ltd(000858) “, continue to strengthen market cultivation and optimize the channel mode, and the more high-end classic 30 is expected to be the first to be launched in the highland market. In terms of series liquor, we will continue to focus on building four national strategic products: wuliangchun, wuliangchun, wuliangtequ and Jianzhuang, promote the brand value of series liquor and optimize the relationship between volume and price of series liquor. At present, the company has started the Spring Festival sales season to collect money, which is worth looking forward to. We expect that the company’s revenue will increase by 17.01%, 17.11% and 15.50% from 2021 to 2023, and the net profit attributable to the parent company will increase by 19.90%, 22.05% and 20.16%, maintaining the target price of 274.49 yuan and the buy rating.
Risk tip: the high-end is less than expected, and the channel development is less than expected.
