\u3000\u3 Shengda Resources Co.Ltd(000603) 369 Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) )
Event: Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) disclosed the announcement of main business data from January to February. According to the preliminary accounting of the company, the company achieved a total operating revenue of about 2.45 billion yuan from January to February 2022, 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%.
Key investment points
The revenue and profit from January to February are in line with market expectations, and the product structure is further optimized. From January to February, the company’s total operating income / net profit attributable to shareholders of listed companies increased by about 25% / 26% year-on-year, which is in line with market expectations. The company successfully achieved a “good start”. We expect that it is mainly due to: 1) Jiangsu is a province with a large number of returning people. The impact of the Spring Festival epidemic this year is relatively small, and the consumption scene of the Spring Festival, especially the scene of gift giving, is promoted. 2) Optimization of product structure. According to the announcement of annual performance increase in 2021, the sales of “special a + products” of the company increased well. The revenue growth rate in 2021 is expected to exceed 35%, and the proportion in the company’s revenue is further increased to about 65%. Accordingly, we expect that the product structure is expected to be further optimized in 2022.
In 2022, we will develop “seeking speed in good times” and strengthen the guarantee of marketing mechanism. At the 2022 development conference, the company proposed to “seek speed in the best way”, achieve the fastest speed while promoting high-quality development, and adhere to the 13445 strategy of “grasping one main line, following the three modernizations strategy, enhancing four confidence, deepening four campaigns and strengthening five guarantees”. In 2022, the company will also strengthen the guarantee of system and mechanism, timely integrate and optimize the top-level design of marketing organization, and orderly establish V9, Guoyuan, Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) three major brand business departments and Gaogou sales company. At the same time, the company will also establish V99 alliance at the development conference, and 99 economic and marketing alliances will be selected from inside and outside the province, The improvement of organizational structure and internal mechanism will jointly contribute to the faster and stronger development in 2022.
Clear development strategy to help achieve the objectives of the 14th five year plan. In the medium and long term, the company plans to achieve a revenue of 10 billion yuan and strive for 15 billion yuan in 2025. The company moves forward in accordance with the established strategy, focusing on the development of V-series and K-series at the product end. Regionally, it should continue to focus on the strategy of “intensive cultivation within the province and breakthrough outside the province”. In 2021, there were more than 30 prefecture level markets with tax sales exceeding 10 million outside the province, with 18 new ones; The continuous promotion of differentiation, high-end and nationalization strategies and the gradual implementation of follow-up incentives and other measures to improve the internal driving force will further help the company achieve the 14th five year plan in advance.
Profit forecast and investment rating: the company’s product echelon is clear and the development direction is clear. We forecast the total revenue of the company from 2022 to 2023 at 7.99 billion yuan, a year-on-year increase of 23% and 22%; The net profit attributable to the parent company is predicted to be RMB 2.5 billion and RMB 3.1 billion, with a year-on-year increase of 25% and 25%, corresponding to the EPS of RMB 1.97/2.46 from 2022 to 2023. The current market value corresponds to PE of 24 / 19x, and the “buy” rating is given for the first time.
Risk tips: the marginal impact of the epidemic has increased, the consumption recovery is less than expected, and the overseas situation is further volatile
