In March 9th, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) disclosed the 1 to February business bulletin in 2022, which is the second Baijiu company that has disclosed monthly business data after Moutai.
Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) estimated first 2 months
net profit increased by more than 50% year-on-year
Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) said in the announcement that in 2022, the company continued to gather brand potential energy and comprehensively improve operation efficiency. Each sales area overcame the impact of the epidemic and arranged the peak season of the Spring Festival ahead of schedule. The overall market sales were good. Medium and high-end products such as Qinghua Fenjiu series achieved substantial growth, and the business revenue and net profit reached the best level in history.
“After preliminary accounting, from January to February 2022, the company is expected to achieve a total operating revenue of more than 7.4 billion yuan, a year-on-year increase of more than 35%; it is expected to achieve a net profit attributable to shareholders of listed companies of more than 2.7 billion yuan, a year-on-year increase of more than 50%.” Fenjiu said.
Previously, Huachuang Securities said that according to the feedback of channel research, the progress of payment collection and delivery of the company in the first quarter was fast, which was expected to be about 35%, the terminal dynamic sales were strong, the growth rate of the channel was expected to be more than 30% in the first quarter, the advantageous markets such as East China were expected to be higher, the structure was upgraded rapidly, and the elasticity of Q1 profit should exceed the income. Research reports of several institutions also said that Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) 2022 can start well.
This time, Fenjiu only released the operating data of the first two months, but compared with the data of the first quarter of last year, the revenue and profit basically exceeded that of the same period last year. In the first quarter of 2021, Fen Liquor’s revenue and net profit attributable to its parent were 7.332 billion yuan and 2.182 billion yuan respectively.
During the Spring Festival, the strong sales potential of Fenjiu is also the main reason for the performance growth.
Many media have reported that Baijiu consumption in Spring Festival has been flagging. However, according to the feedback from the channel terminal, Fenjiu has shown strong sales potential in the main sales areas during the Spring Festival peak season, and some products are out of stock in some areas, confirming the strong demand side.
“two structural optimization” to increase performance
During the Spring Festival, the core single products of Fenjiu were basically in large quantities. According to the Research Report of Huachuang securities, the samples from Shanxi, East China and central China markets reported that Qinghua 20 had zero inventory, with a bid price of about 400, and the bid price of Fuxing version is currently stable at about 860 yuan.
At present, Fenjiu has 28 billion market in China, with an increase of more than 300 dealers in the whole year, the proportion of large and excellent merchants continues to increase, and the number of controllable terminal outlets has exceeded one million.
In addition, the company firmly adheres to the strategy of “grasping blue and white, strengthening waist and stabilizing Bofen”, in which the growth rate of qing20 leads, the revival version solidly promotes circle marketing and consumer cultivation, the introduction outside Panama and laobaifen province is smooth, the momentum of Bofen under active control is still strong, and the product structure continues to be optimized.
At the 2021 dealer conference, the company defined the key marketing work of “two structural optimization” and issued the “133238” Fen Liquor marketing reform policy. The three assessment indicators focused on Qinghua. In 2022, the marketing focus was more firm and inclined to Qinghua. At present, blue and white 20 has successfully ranked among the largest single products in the first camp of secondary high-end, with positive sales growth. It will continue to assess and strengthen terminal promotion in 2022; Take “15520e” as the specific play method and measure to increase the momentum and revive the version; Introduce blue and white 40 China dragon with core high-end dealer consortium. Qinghua Fenjiu is the inevitable choice for the revival of Fenjiu. The company will firmly grasp the three-year strategic key development period.
Guotai Junan Securities Co.Ltd(601211) said that under the structural optimization strategy, the large-scale production of laobaifen and the upgrading of Bofen products will boost the profitability of basic single products, the large-scale production of Qinghua expressway will continue to drive the upward movement of product structure, the channel layout of Fenjiu will gradually mature, the follow-up rate is expected to remain stable, and the high profit increase of the company is expected to continue.
Huachuang Securities believes that in the short term, the dynamic sales in the first quarter are bright, and in the long term, the company’s change and unchanged strategy is clear, opening a new process of rejuvenation. In the long run, the new chairman yuan is open and pragmatic, determined to forge ahead, and has a deep understanding of the changes and invariance, strategic determination and tactical power in the development of the company. The company’s reform will continue to deepen, and the profit promotion potential brought by structural upgrading will still have sufficient market space in the future.
When will Baijiu sector warm up?
Break the normal procedure in March 7th, first, Moutai revealed the data in 2022 of 1-2, and in the background of the weak performance of the Baijiu sector, it is widely believed that Moutai’s move is to boost confidence. The next day, Kweichow Moutai Co.Ltd(600519) opened higher and closed up 1.48% on March 9.
In the early March 9th, the Baijiu sector rebounded briefly and then fell back. Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) shares closed at 273.95 yuan per share and the latest market value was 334 billion 200 million yuan.
Baijiu Baijiu Hou Shuai, a liquor industry expert, stressed that Baijiu is still rising at the present stage. The two tier market is very tight with information, and the information is somewhat overloaded. A lot of information is partial information, and it is difficult to have a comprehensive understanding of the industry. It may lead to easier short-term sentiment, which requires understanding the long-term core problem of the liquor industry.
The analysis shows that Baijiu products are essentially social goods and means of production. Their unique needs depend on production, business and social activities, and their essential characteristics are values. The overall price structure of Baijiu industry has changed dramatically from Pyramid to Pyramid, and the high-end industry has not yet ended. From a long-term perspective, the value symbol makes price the most important competitive factor. The ultimate mission of the winery is to raise the price in the concept of consumers.
