\u3000\u30 China High-Speed Railway Technology Co.Ltd(000008) 58 Wuliangye Yibin Co.Ltd(000858) )
Events
On the evening of March 9, 2022, the company released the performance express of 2021: the company’s revenue in 2021 was 66.2 billion yuan, an increase of about 15% at the same time; The net profit attributable to the parent company was 23.35 billion yuan, an increase of about 17% at the same time.
Key investment points
It grew steadily in the fourth quarter and ended smoothly in 2021. According to the performance express, the company’s 2021q4 revenue was 16.479 billion yuan, an increase of 11.1% at the same time; The net profit attributable to the parent company was 6.023 billion yuan, an increase of 11.4% at the same time. It continued to maintain double-digit growth in the fourth quarter and ended smoothly in 2021.
Five priorities in 2022, brand product channel upward, five priorities of the company in 2022:
1) adhere to the simultaneous development of culture and service, and continue to strengthen the cultivation of consumers. In 2022, the company plans to build 10 new cultural experience halls and put them into use, creating an important position for the cultivation of opinion leaders and consumer circles.
2) adhere to the balance between supply and demand and continuously improve Wuliangye Yibin Co.Ltd(000858) the market positioning. We must persist in consolidating the market core position of the 8 generation Wuliangye Yibin Co.Ltd(000858) thousand yuan price with the large single products, insist on making efforts to develop 2000 Baijiu market, strengthen the cultivation of the classic Wuliangye Yibin Co.Ltd(000858) market, strengthen the 1+2+N channel mode, and make good use of the scarce resources of the classic Wuliangye Yibin Co.Ltd(000858) , and distribute the resources.
3) adhere to the combination of personality and market, and continue to meet the consumption demand of the new era. Launch a series of old wine activities to expand the old wine market. Stabilize the market advantage of main sales and form a low-cost market awareness.
4) insist on paying equal attention to scale and value, and continue to promote the upgrading and development of a series of wines Wuliangye Yibin Co.Ltd(000858) under the guidance of “three natures and one time” and “Three Focuses”, systematically implement the specific measures of “strengthening the national strategic brand, expanding the regional key brand and improving the general distribution brand”, and concentrate on building four new national strategic products: wuliangchun, wuliangchun, wuliangtequ and Jianzhuang.
5) adhere to sharing and joint construction, and continue to build a community of Wuliangye Yibin Co.Ltd(000858) shared future. Optimize the team’s business ability and service ability, and accelerate the transformation from “management” to “enabling” and “service” teams.
In 2022, we will continue to make progress while maintaining stability, and four highlights in the future
In 2022, the company will continue to do a good job in marketing, adhere to the general tone of seeking progress while maintaining stability, unswervingly focus on strengthening the main business of the wine industry, continue to promote the transformation and innovation leap, further promote the long-term work policy of making up for shortcomings and lengthening the version, and lay out a new round of high-quality development. Adhere to the core of high-quality improvement, accelerate the construction of new manufacturer relations, strengthen supply chain stability, channel transformation and market expectations, and ensure the full realization of new development with steady progress.
Four highlights of the company in the future: first, the main brand “1 + 3” product system remains unchanged, continue to promote the established strategy, hold high and promote the classic Wuliangye Yibin Co.Ltd(000858) development. Second, in terms of channels, we will continue to promote group purchase channels. In 2020, the company will take the initiative to develop group purchase channels, with a group purchase target of 30% in 2021. Third, in terms of liquor series, focus on resources to build four national strategic brands: Jianzhuang, wuliangchun, wuliangtequ, and strive for sales of more than 20 billion yuan during the 14th Five Year Plan Period: Jianzhuang’s target of 10 billion yuan, wuliangchun and wuliangchun’s target of 5 billion yuan, and wuliangtequ’s target of 2 billion yuan. Fourth, the current Maotai wholesale price is steadily above 2500 yuan. The Wuliangye Yibin Co.Ltd(000858) wholesale price will stand firm in 2022. There is little problem with the price band of 1000 yuan. It is expected to continue to rise both in volume and price, with high performance certainty.
Profit forecast
We believe that the company has taken many measures in recent years to reform and improve the brand, products, prices and channels, with remarkable results and high market recognition. The current valuation is undervalued and is expected to be repaired in the future. According to the performance express, we slightly adjusted the EPS from 2021 to 2023 to 6.02/7.13/8.37 yuan respectively (the previous value was 6.26/7.40/8.64 yuan respectively), and the corresponding PE of the current stock price was 27 / 23 / 20 times respectively, maintaining the “recommended” investment rating.
Risk tips
Macroeconomic downside risk, epidemic drag on consumption, classic Wuliangye Yibin Co.Ltd(000858) growth is lower than expected, wholesale price rise is lower than expected, group purchase growth is lower than expected, etc.
