Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) ( Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) ) event description
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%.
Event comments
Steady growth and a good start. From January to February 2022, the company is expected to achieve an operating revenue of 2.45 billion yuan, with a year-on-year increase of 25%, and the net profit attributable to the parent company is 940 million yuan, with a year-on-year increase of 26%. The sales of products during the Spring Festival this year have increased well and achieved a good start, mainly due to the small impact of the epidemic in Jiangsu Province during the Spring Festival. From the product perspective, the product structure is further upgraded. It is estimated that the sales of “special A+” products will continue to grow at a high rate, (accounting for more than 300 yuan Baijiu), and the proportion will be further improved.
The development strategy is clear and high-quality growth is expected. According to the disclosure of the company’s 2022 development conference, Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) on the basis of realizing the good start of the 14th five year plan, the marketing work in 2022 will pay more attention to system planning, system operation and professional matching, commit to integrity and innovation, work hard and create a new situation of high-quality leapfrog development. We will do a good job in five aspects: 1) grasp “one main line” and take “focusing on high quality and concentrating on new leaps” as the main line; 2) Following the “three modernizations strategy”, differentiation, high-end and nationalization “three modernizations strategy” is the strategic guiding principle of Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) “14th five year plan” period; 3) Enhance the “four confidence” to enhance industry confidence, brand confidence, quality confidence and development confidence respectively; 4) Deepen the “four campaigns”, including focusing on improving the potential energy of V9 brand, continuously strengthening the basic market of opening system, strengthening the effectiveness of Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) brand activation, and accelerating the market breakthrough outside the province; 5) Strengthen the “Five Guarantees”, including promoting the establishment of sub brand business departments, expanding brand communication, simplifying processes, clarifying rights and responsibilities, improving service support measures and optimizing team performance appraisal.
Investment advice
In 2022, the company made a good start as scheduled. The company resolutely fought the “four major campaigns” to foster market growth momentum, expand market share, foster growth poles with the “V critical battle” of the national edge, consolidate the basic market with the “national margin system and enhance the war”, create a large single product with the ” Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) brand activation war”, expand the new world with the “foreign market breakthrough” and promote the sustained growth of enterprises. At the same time, with the gradual implementation of equity incentive, the vitality of the company is expected to be further released. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 1.929 billion, 2.349 billion and 2.832 billion, and the EPS will be 154 yuan, 187 yuan and 226 yuan respectively. Corresponding to the current stock price, PE will be 31 times, 26 times and 21 times respectively. Maintain the “buy” rating. There are risks
The risk of food safety, the risk of sharp decline in the price of high-end wine caused by the macroeconomic downturn, the development of the epidemic exceeding expectations, and the risk of market competition in the province
