\u3000\u3 Shengda Resources Co.Ltd(000603) 589 Anhui Kouzi Distillery Co.Ltd(603589) )
Event: the company announced that the operating revenue in 2021 was 5.03 billion yuan, a year-on-year increase of + 25.4%; The net profit attributable to the parent company was 1.73 billion yuan, a year-on-year increase of + 35.4%; Deduct the net profit not attributable to the parent company of RMB 1.48 billion, a year-on-year increase of + 19.5%. 21q4 achieved an operating revenue of 1.4 billion yuan, a year-on-year increase of + 5.7%; The net profit attributable to the parent company was 580 million yuan, a year-on-year increase of + 39.9%; Deduct the net profit not attributable to the parent company of RMB 380 million, a year-on-year increase of – 5.5%. The net profit margin of non parent company deduction in 21 years was 29.5%, a year-on-year decrease of 1.5pct, of which 21q4 was 27.0%, which was a drag on the whole year in the fourth quarter.
The product structure continues to upgrade, focusing on the main products. Since last year, the company has mainly promoted products with high price for more than 10 years. The new product and fragrance 518 attaches importance to consumer cultivation and seeks breakthrough in circles, rather than pursuing short-term volume. At present, the company focuses on the main single products, pays attention to the sales at favorable prices, and the inventory dynamic sales is benign; At the same time, benefiting from the upward movement of Huijiu price band, it is expected that the income of medium and high-grade single products of the company is expected to continue to increase.
Channel reform has been effective, and the construction of basic channels has been promoted at the same time. In the past two years, the company has strengthened the assessment of dealers and business teams from the level of the whole product line. At the same time, it determines the areas and products that dealers can represent according to their ability and results. Once the assessment goal is not reached, the agency right of corresponding products will be revoked. At the level of basic channel construction, the group purchase channels and dealers developed since the second half of last year are well presented in the market.
The government has sufficient power to support and has high aspirations for expansion outside the province. As one of the enterprises with the largest financial contribution in Huaibei City, the company is highly concerned by the municipal government. The government also hopes to promote the company to continue to make greater contributions to the city’s economy. Last year, the municipal government conducted intensive research to explore how to better promote local economic development and give land support to the company’s capacity expansion projects under the condition of tight land indicators. In addition, the company will continue to promote market expansion outside the province in the future.
Investment suggestion: it is estimated that the earnings per share in 20222023 will be 3.46 yuan and 4.16 yuan. The company will be given a Buy-A investment rating and a target price of 76 yuan, corresponding to 22x for 2022pe.
Risk tip: the promotion of Jianxiang 518 is less than expected, the channel reform is less than expected, and the competition of Huijiu is intensified.
