\u3000\u30 Shenzhen Fountain Corporation(000005) 68 Luzhou Laojiao Co.Ltd(000568) )
Event description
The company issued a performance express: in 2021, the net profit attributable to the owner of the parent company was 7.849 billion yuan, a year-on-year increase of 30.7%; The operating revenue was 20.384 billion yuan, a year-on-year increase of 22.4%.
Event comments
The performance accelerated month on month, in line with market expectations. In 2021, the company achieved an operating revenue of 20.384 billion yuan, a year-on-year increase of 22.4%, and the net profit attributable to the parent company was 7.849 billion yuan, a year-on-year increase of 30.7%, mainly due to the growth of operating revenue and the continuous increase in the proportion of medium and high-end products. At the same time, the company implemented fine management to further reduce the expense rate. Among them, the operating revenue of single Q4 was 6.274 billion, a year-on-year increase of 24.1%; The net profit attributable to the parent company was 1.573 billion, with a year-on-year increase of 32.2%, accelerating month on month.
The competitive advantage of the product system is prominent. At present, Guojiao 1573 has become the top three high-end products. Together with Luzhou Laojiao Co.Ltd(000568) 1952, which is an important force in the shoulder price segment, it has become a fist product leading the revival of the first curve; The volume and price of Luzhou Laojiao Co.Ltd(000568) Tequ, Centennial Luzhou Laojiao Co.Ltd(000568) Jiaoling liquor and other products in the waist price range, which occupy the second high end, have increased steadily Luzhou Laojiao Co.Ltd(000568) · heigai and other tower base products have also fully reshaped their brand image and price Luzhou Laojiao Co.Ltd(000568) customized wine has become one of the most important growth poles of Luzhou Laojiao Co.Ltd(000568) innovative development and personalized service. Therefore, the “pyramid” of Luzhou Laojiao Co.Ltd(000568) strain has highlighted its overall competitive advantage and contributed to sustainable growth.
Equity incentive shows confidence and the company’s business vitality is improved. The company has launched equity incentive, which covers a wide range and covers a large number of managers and technical backbones. According to the target guidelines, the growth rate of the company is expected to reach more than 25% in 202223, which will fully mobilize the power of the company’s management. According to the “14th five year plan” strategic plan formulated by the company: “136” strategy. Among them, “1” means the goal of “returning to Chinese Baijiu” in the first three. Therefore, the implementation of equity incentive also helps the company to achieve the objectives of the 14th five year plan.
Investment advice
In the short term, the company’s performance in 2021 has come to a successful conclusion. In the medium and long term, thanks to the expansion of 1000 yuan price belt and the shortage of Maotai liquor, there is sufficient room for the growth of volume and price of Guojiao in the future. At the same time, the reform and development of medium and low-grade liquor has accelerated, helping the company to grow continuously. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 7.843 billion, 9.762 billion and 12.156 billion, and the EPS will be 5.35 yuan, 6.66 yuan and 8.30 yuan respectively. Corresponding to the current stock price, PE will be 38 times, 31 times and 25 times respectively. Maintain the “buy” rating.
There are risks
Food safety risk and macro-economic downturn lead to a sharp decline in the price of high-end wine
