Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) (603369)
Recently, the company successfully held the 2022 Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) development conference, which affirmed the achievements of the company in the first year of the 14th five year plan, and established that the main line of work in 2022 is “focusing on high quality and focusing on new leaps”.
Key points supporting rating
Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) the development conference released a positive signal and won the first victory in the opening year of the 14th five year plan. Recently, the Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) development conference was successfully held. Mr. Zhou suming, chairman of the board, said at the meeting: Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) continued to maintain a good development trend in the fourth quarter and achieved a great victory in the first stop in the opening year. According to the company’s previous plan, in 2021, the company’s revenue target is 5.9 billion, striving for 6.6 billion, and the net profit target is 1.8 billion, striving for 1.9 billion. Since the completion of the company’s performance in the previous three quarters, we judge that the company’s revenue is expected to be close to the goal. At present, the company’s channel inventory is benign and the Spring Festival stock is active. According to the 14th five year plan of the company, the company will strive to achieve revenue of more than 10 billion (strive for 15 billion) in 2025. The company proposed to strive to achieve the goal of 10 billion ahead of schedule at the development conference.
The product upgrade path is clear, which helps the company achieve the 14th five year plan goal in advance. From the implementation path, (1) after the successful renewal of the company’s core single product in the first half of the year, the terminal price was stable, and the transaction price was 460-470 yuan. With the continuous improvement of the potential energy of Sike brand and the focus on introducing weak areas in the province this year, we judge that Sike can achieve a higher growth rate year-on-year, which is the basic market of the company. (2) Guoyuan V series is expected to take over and open the system to become the next growth point in the future. The 14th five year plan aims to achieve a high target of 2 billion, accounting for 20% of revenue and 50% of CAGR (20-25 years). “V-series battle” is the first of the company’s four major campaigns. At present, the company tilts its resources to V-series. V-series is mainly dominated by V3 and V9, of which V3 will undertake the consumption upgrading of the four open national borders. The transaction price in the province is about 600 yuan. At present, it is still in the market cultivation period. V9 is divided into three varieties: Supreme version, business version and low-grade small v. the price band layout is 1000-2000 yuan to create a series of elegant Maotai flavor products. Recently, the company established V99 alliance, which is composed of the core dealers of Guoyuan V series, to unite the manufacturers and jointly enter the V series for further development.
The company’s sales in the province have formed a virtuous circle and sustainable high-quality development. At present, the company’s sales in Jiangsu Province have formed a virtuous circle, which is mainly reflected in stable price, low inventory and fast dynamic sales. The product upgrading path is clear, and the layout of weak areas in the province has achieved initial results. The company is committed to improving the long-term benefit sharing mechanism, with firm determination, continuous promotion of equity incentive, sufficient endogenous power, clear marketing strategy and unity of manufacturers, and can complete the 14th five year plan with high quality.
Valuation
Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) as a local wine in Jiangsu Province, we fully enjoy the local excellent consumption environment. We believe that the company still has large upward space and valuation advantages. It is estimated that the company’s EPS will be 1.57 yuan, 1.96 yuan and 2.42 yuan / share respectively from 21 to 23 years, and the corresponding PE will be 34.7x, 27.8x and 22.6x respectively, giving a buy rating.
Main risks of rating
The province is squeezed by competitive products and the channel inventory is overstocked. Failed to successfully complete the goal planning.
