\u3000\u30 Shenzhen Fountain Corporation(000005) 68 Luzhou Laojiao Co.Ltd(000568) )
Event: the company disclosed the 2021 performance express. In 2021, the operating revenue reached 20.384 billion yuan, a year-on-year increase of 22.4%; The net profit attributable to the parent company was 7.849 billion yuan, a year-on-year increase of 30.7%. In 2021q4, the operating revenue was 6.274 billion yuan, a year-on-year increase of 24.1%; The net profit attributable to the parent company was 1.573 billion yuan, a year-on-year increase of 32.2%. The main reason for the performance growth is the growth of operating revenue and the continuous improvement of the proportion of medium and high-end products. At the same time, the company implements fine management to further reduce the expense rate.
21q4 single quarter revenue reached a new high, and the annual revenue profit increased rapidly: in 2021, the growth of the company’s net profit attributable to the parent company was higher than the growth of revenue, and the weighted average roe reached 30.8%, indicating that the proportion of medium and high-end products with high profit margin increased, bringing high returns to shareholders. The company’s revenue and net profit have maintained a good growth trend in recent years, among which the net profit has increased by more than 20% for seven consecutive years.
National layout and expansion of production are on the way: Guojiao 1573 is based on high-end and moves towards the whole country. The company’s regional market and “Urban Agglomeration” strategy go hand in hand. The strategic effect of “going east and rising in the South” appears, and the national market layout realizes high-quality and balanced development. The company intends to expand production and improve high-quality production capacity. In December 19, 2021, the company issued a notice that the wholly-owned subsidiary Luzhou Laojiao Co.Ltd(000568) Brewing Co., Ltd., with its own funds not exceeding 570 million yuan, participated in bidding for the auction of the land use right of the Baijiu liquor Industrial Park in Luzhou, Luzhou, which was publicly sold by the Luzhou natural resources and Planning Bureau at the Luzhou public resources trading center, totaling 9495705 mu for production and construction projects.
Implementation of equity incentive and establishment of long-term incentive mechanism: on February 20, 2022, the company issued an announcement on the granting of restricted stock incentive: the board of directors of the company agreed to grant 6.9286 million restricted shares to 441 incentive objects meeting the granting conditions at the grant price of 92.71 yuan per share on December 29, 2021.
Investment suggestion: it is estimated that the company’s earnings per share in 202123 will be 5.36, 6.79 and 8.43 yuan, and the current share price corresponding to 202123pe will be 38.37, 30.26 and 24.39x. The target price will be 275 yuan, corresponding to 33x 2023pe and Buy-A rating.
Risk tip: Maotai flavor and heat will aggravate the competition of medium and high priced wines; Luzhou flavor waist and medium and low-end are under great competitive pressure, and the medium-term performance of the company’s medium and low-end liquor may continue to be lower than expected.
