Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) (603369)
event
On December 29, 2021, the Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) development conference with the theme of “focusing on high quality and focusing on new leaps” was held in the company’s headquarters, and the company’s management attended the conference.
Key investment points
Set up V99 alliance and accelerate the volume of V series
In the first three quarters, the revenue of V series increased by 120%, accounting for 10.7%. V series has a steady and large volume. V series products are an important part of the company’s goal of reaching 10 billion. At present, the company has established a V99 consortium, which is selected from the V-series dealers in the key markets inside and outside the province. Adhering to the principle of voluntary participation, in principle, each prefecture level city in the province selects 1-3 consortium members, with a maximum of 99. The first batch of qualified participants is 39. V99 consortium members will participate in the formulation of V series marketing system, mode and strategy, enjoy the key policy support of the core market, enjoy the company’s one-to-one market guidance, point-to-point service of V9 business division, and enjoy various training opportunities of V9 consortium. We believe that the members of V99 consortium will become an important carrier of the company’s V series.
Enter 2022 with high quality and implement the “13445” policy
At present, the company focuses on the in-depth control and profit sharing system, innovating the three service linkage strategy, building three-phase and three-type models, and providing intellectual policy knowledge, cost budget support and market operation guarantee.
In 2022, the company’s marketing will implement the “13445” policy: “1” refers to focusing on high quality and focusing on new leaps. “3” refers to the three modernizations strategy, highlighting differentiation, building core competitiveness, striving for high-end, seizing new competitive tracks, speeding up the full flower, and making a breakthrough outside the province. “4” refers to industry confidence, brand confidence, quality confidence and development confidence. “4” refers to deepening the four campaigns: 1) unswervingly, strive to improve the potential energy of V9 brand, promote supremacy, sell business, and have V9 first and then V series; 2) Improve quality and expand coverage, continue to strengthen the basic market of opening system, enlarge the popularity of brand reputation, improve the control and profit sharing system, and continue to promote regional intensive cultivation; 3) Highlight characteristics and strengthen Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) brand activation effect; 4) Take multiple measures at the same time, accelerate the market breakthrough of plates outside the province, coordinate the layout of dual brands, build diversified plates, and cultivate innovative new consumption. “5” refers to strengthening the five guarantees, upgrading the marketing organization (strengthening V9 business unit, establishing Guoyuan, Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) business unit and Gaogou sales company), increasing market investment, deepening process reform, implementing the business excellence plan and improving the incentive mechanism.
Equity incentive is expected to accelerate the implementation, and the company’s three highlights in the future
At the end of October, the company plans to use its own funds of no more than 518 million yuan to repurchase 6.6-7.7 million shares, accounting for about 0.53% – 0.61% of the total share capital before repurchase; The company completed the repurchase on November 26, with a cumulative repurchase of about 7.7 million shares, accounting for 0.6138% of the total share capital of the company. The average repurchase price is 56.24 yuan / share, and the total amount paid is about 433 million yuan. We believe that the equity incentive scheme is expected to accelerate its implementation.
Three highlights of the company in the future: first, the 10 billion target of V Series in the next decade, and the price band of 600-700 yuan for V3 and competitive M6 + advance card; Second, the 14th five year plan for Southern Jiangsu is expected to be nearly 4 billion, with large growth space in the future; Third, the proportion outside the province in the 14th five year plan accounts for more than 20%, and the expansion outside the province is a must for the company to open the ceiling.
Profit forecast
At present, the company is deeply promoting differentiation, high-end and nationalization, and fully implementing the national edge V-series battle, K-series promotion war, Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) brand activation war and breakthrough war outside the province. Taking the Yangtze River Delta as the center, accelerate the formation of strategic plates; Cultivate key markets with key regions of Beijing, Tianjin, Hebei, Guangdong, Jiangxi, Hunan and Hubei as the core; The market development of prefectures and cities adopts the interactive layout development strategy of cities, counties and districts, and the market development of counties and districts adheres to the “focus law”. Breakthroughs outside the province follow the regional expansion strategy of “comprehensive planning, key breakthroughs, surrounding radiation and echelon development”. We continue to be optimistic about the continuous improvement of the proportion of Guoyuan series, driving the continuous optimization of product structure. V series is expected to become the company’s new power engine and follow Su liquor to build surrounding plates for a long time. It is estimated that the EPS from 2021 to 2023 will be 1.57/2.02/2.59 yuan, and the current share price corresponding to PE is 35 / 27 / 21 times respectively, maintaining the “recommended” investment rating.
Risk statement
Macroeconomic downside risk, epidemic drag on consumption, less than expected growth in the fourth open, less than expected growth in the V series, less than expected expansion outside the province, etc.
