\u3000\u30 Shenzhen Quanxinhao Co.Ltd(000007) 99 Jiugui Liquor Co.Ltd(000799) )
Events
Jiugui Liquor Co.Ltd(000799) release the main business data from January to February 2022.
In 2022 Jiugui Liquor Co.Ltd(000799) (hereinafter referred to as “the company”) continued to adhere to the strategy of strengthening the base market, creating a highland market and deepening nationalization, continuously strengthened the intensive cultivation of the base market, strengthened the brand leadership of the highland market, rapidly and effectively promoted the national excellent business layout, strengthened and optimized the circle marketing and core store construction, and continuously improved the brand culture and team culture, It has improved customer satisfaction, consumer awareness and brand reputation, and achieved an excess of business from January to February.
After preliminary accounting, from January to February 2022, the company is expected to achieve a total operating revenue of about 1.4 billion yuan, an increase of about 120% over the same period last year; The net profit attributable to the shareholders of the listed company is expected to be about 465 million yuan, an increase of about 130% over the same period last year.
Brief comment
Market leading + structural improvement, Jiugui Liquor Co.Ltd(000799) taking advantage of the trend.
Since COFCO became the owner in 2015, Jiugui Liquor Co.Ltd(000799) has achieved rapid growth for several consecutive years. In the case of frequent spot outbreaks in various places during the Spring Festival this year, it has still achieved excellent results of 120% increase in revenue and 130% increase in net profit attributable to its parent company. The reasons for the rapid growth of Jiugui Liquor Co.Ltd(000799) in recent years are: ① the background advantages of central enterprises, As a member of COFCO group, enjoy the resources and channels of central enterprises; ② The strong reform of the sales system, especially the independent operation of internal ginseng wine, has expanded from a product with sales of only hundreds of millions in 2018 to a large single product with sales of 2 billion today; ③ The improvement of team culture and incentive mechanism, the transformation from management team to service team, has improved customer satisfaction.
Since the beginning of this year, from the perspective of marketing, the company has continued to adhere to the strategy of strengthening the base market, creating a highland market and deepening nationalization, continuously strengthened the intensive cultivation of the base market, strengthened the brand leadership of the highland market, rapidly and effectively promoted the national excellent business layout, strengthened and optimized the circle marketing and the construction of core stores, specifically in terms of data, Jiugui Liquor Co.Ltd(000799) payment collection ratio reached about 40%, leading the secondary high-end. At the same time, the inventory inside and outside the province remained at a benign level, with good dynamic sales. Various factors led to a sharp rise in income in the first two months.
In terms of structural optimization, the net interest rate in the first two months increased from 30% in Q1 of 21 to 33% this year, which also shows that the company has made steady progress on the road of high-end. It is expected that the growth rate of internal participation will be more than 150% and still maintain a rapid growth momentum.
Cultural drunkard, focusing on brand potential energy.
Since 2019, in the past three years, the domestic liquor has been going northward and eastward and moving westward, and has been distributing in the major Baijiu market. More than 20 seminars on internal drinking have been held. Relying on the value seminar, we have quickly leveraged the circle marketing, promoted the brand cultural value, deepen the local market and deepen the cultivation of consumers. And major businessmen around the country to “breadth + depth” weaving network.
The journey of nationalization will not be changed, and we will contribute to the goal of 10 billion yuan.
In 2021 and the first two months of 2022, the company showed outstanding performance in nationalization, the channel strength was continuously strengthened, and the mobile sales rate of terminals in the province was significantly improved. We believe that the company will still be in a period of rapid growth in 2022, and the dynamic sales rate in the market outside the province is expected to gradually increase over time. In the long run, the company is expected to gradually open the growth ceiling by virtue of its unique flavor, cultural marketing, channel expansion and endorsement of central enterprises, so as to contribute to the revenue target of 10 billion yuan.
Profit forecast.
It is estimated that from 2021 to 2023, the company will realize a revenue of 3.412/53.97/7.015 billion yuan and a net profit attributable to the parent company of 9.12/15.63/2.181 billion yuan, with a corresponding EPS of 2.81/4.81/6.71 yuan / share and a corresponding PE of 57.2/33.4/23.9 times (share price on March 10, 2022).
Risk tips:
Repeated epidemics, food safety risks, etc.
