\u3000\u3 Shengda Resources Co.Ltd(000603) 369 Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) )
Events
Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) announce the announcement of main business data from January to February 2022.
During the Spring Festival in 2022, the company’s product sales increased well and achieved a “good start”. According to the preliminary accounting of the company, from January to February 2022, the company achieved a total operating revenue of about 2.45 billion yuan, an increase of about 25% year-on-year; The net profit attributable to the shareholders of the listed company was about 940 million yuan, a year-on-year increase of about 26%.
Brief comment
Su liquor has a good demand in the peak season of the Spring Festival, and Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) has a good start.
The company released the operating data during the Baijiu sales peak in 1-2 months in 2022, from the increase of 25% in business income and 26% increase in net profit of the same year. During the Spring Festival, the growth of the company’s sales volume was outstanding. It made a smooth start and achieved a good start for the realization of the business objectives throughout the year.
Considering the tracking of Baijiu selling in Jiangsu market before and after the Spring Festival, we believe that the company can achieve higher growth mainly based on the following two aspects:
From the external environment, the epidemic situation in Jiangsu is well controlled during the Spring Festival. Under the guideline of “one size fits all” epidemic prevention and control, Baijiu consumption scenes besides the banquet have shown a good growth trend. In addition, the concentration of Jiangsu Baijiu consumer brands has also been enhanced. Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) , one of the leading liquor makers, has enjoyed a bright growth in the bonus of brand concentration.
② from the perspective of internal factors, the 450 yuan incremental price band of four precision card slots and the sub high-end price band of shunsu liquor maintain high growth and stabilize the basic performance of the company. As the second growth pole cultivated by the company, the brand of V-series is growing gradually after more than three years of cultivation, and has gradually increased in regions with relatively high consumption levels such as southern Jiangsu and Nanjing. According to the data released at the Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) development conference in 2022, the sales revenue of V-series increased by 120% year-on-year in 2021. It is expected that V-series will continue its high growth trend during the Spring Festival in 22 years, Optimize the growth of the company’s revenue structure and release the flexibility of revenue growth at the same time.
Consumption upgrading goes hand in hand with industry differentiation, and we are optimistic that the company will continue to overweight and overtake.
Against the background of consumption upgrading and industry differentiation, Jiangsu, as a major economic and consumption province, provides sufficient opportunities and space for Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) to take the lead in occupying the price band of China Yangtze Power Co.Ltd(600900) yuan and its development.
Market differentiation in the province, intensive market cultivation and channel sinking in the five cities in Northern Jiangsu, coupled with the cultivation of the market in southern Jiangsu and the radiation of Nanjing, there is still much room for improvement in the province. In particular, the V-series takes Southern Jiangsu as the key sector, gradually radiates and stands firm in the Yangtze River Delta, and steadily advances the goal of 10 billion yuan in ten years. Although there are many small markets outside the province, with the popularity of sauce wine in Henan and Shandong becoming more rational and providing layout space for Luzhou flavor, Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) scattered dealers outside the province are expected to blossom more after several years of market cultivation. In addition, equity incentive is expected to further stimulate the company’s market development potential and enthusiasm for channel construction. In the future, the company is expected to improve channel construction with the help of group purchase + circulation channel double wheel drive, continue to cultivate in and outside the province, build Guoyuan into a national sub high-end famous wine, and drive the continuous high-quality growth of the company’s performance.
Profit forecast: from 2021 to 2023, the company is expected to realize revenue of RMB 6.435 billion, RMB 8.096 billion and RMB 10.056 billion, net profit attributable to parent company of RMB 2.014 billion, RMB 2.543 billion and RMB 3.171 billion, corresponding EPS of RMB 1.61, RMB 2.03 and RMB 2.53 per share, corresponding PE of (202203-08) of 28.6x, 22.7x and 18.2x, maintaining the “buy” rating.
Risk tips: repeated outbreaks, intensified market competition, etc.
