Is the tide of wine enterprises expanding production coming? 300 billion Baijiu giant intends to spend billions to expand production and expansion.
On March 16, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) announced that the company plans to invest 9.102 billion yuan to build and implement the expansion project of original liquor production and storage of Fenjiu 2030 technical transformation (phase I). After the completion of the project, the company is expected to increase the annual output of original wine by 51000 tons and the energy storage of original wine by 134400 tons. In addition, 1.058 billion yuan will be invested in the plant bathroom reconstruction project, the construction project of new electric bicycle storage shed, sorghum storage project, the new production capacity project of health wine Park, the reconstruction and expansion project of Baiyu distillery, etc.
Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) invested 9.1 billion yuan to expand production
proposed to invest in the expansion project of original wine production and energy storage
On March 16, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) announced that the company plans to invest 9.102 billion yuan in the construction and implementation of the original liquor production and storage expansion project of Fenjiu 2030 technical transformation (phase I). The project covers an area of 1932 Mu and the construction period is planned to be three years. After the completion of the project, the company is expected to increase the annual output of original wine by 51000 tons and the energy storage of original wine by 134400 tons.
The main contents of this investment are divided into East and west areas and public works. The eastern region includes: auxiliary materials warehouse and steaming workshop, high granary and crushing workshop, 4 wine making shops, 1 wine collecting workshop, 11 pottery pool, 2 Baijiu storehouse, 1 technology processing centers and supporting facilities; The western region includes: the Qu Qu District, 3 liquor making shops, 1 wine collecting workshop, 8 pottery altar storehouses, 1 technology processing centers, 5 Baijiu storehouses, 5 tank farms, 1 blending shops, branch offices, catering centers, and waste farms. In addition, utilities are interspersed in the East and west areas, including sewage treatment station, fire station, fire pool, water pump room, natural gas pressure regulating station, boiler room, machine repair workshop, heat exchange station, cooling pool, accident pool, etc.
Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) indicates that the transportation of raw and auxiliary materials in the project is changed from traditional automobile transportation to air transportation. The implementation of the material conveying system has changed the current situation of crowded vehicle transportation roads in the past, reduced the number of post labor and improved work efficiency. The production process of the project has retained the core technology of Chinese Baijiu and Fen Liquor, that is, “medium low temperature Daqu production technology, solid-state fermentation, ground cylinder separation and solid distillation”, and the rest of production links can minimize labor intensity and productivity. After the completion of the project, the company is expected to increase the annual output of original wine by 51000 tons and the energy storage of original wine by 134400 tons.
The total investment of the project is 9.102 billion yuan, including 849400 yuan of fixed asset investment and 608 million yuan of initial working capital, all of which are raised by the enterprise itself. It is planned to be completed and put into operation in three years.
After the project is put into operation, under the normal operation of the company, it is expected that the sales revenue in the year when the production capacity is reached will be 8.118 billion yuan, the total annual profit will be 2.858 billion yuan, and the annual investment profit margin will be 20.4%. The project has good economic benefits and strong anti risk ability.
Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) said that in recent years, with the continuous optimization and adjustment of the company’s product structure and the increasing demand for high-quality production capacity, according to the medium and long-term development strategy of Fen Liquor and the 14th five year plan, the company needs to continue to expand the production and storage capacity construction of original liquor. After the completion of the project, the production and storage capacity of Fen Liquor will be effectively improved. This expansion is not only the pursuit of scale, but also the overweight of quality, the support of brand and the upgrading of competitiveness. The improvement of the production and storage capacity of the company will also directly contribute to the development of higher quality of Fen Liquor.
In addition, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) also emphasizes many risks. The implementation and benefits of future projects may be affected by macroeconomic changes, intensified industry competition, changes in industrial policies and other relevant uncertain factors in the process of project construction. The investment project is only a preliminary plan. The construction and production of the project have not started, and it needs a certain time period, which will not have a significant impact on the company’s operating conditions in 2022, and there may still be other relevant uncertain factors in the process of project construction. Please pay attention to the investment risks.
1.058 billion yuan invested in Sorghum storage projects
In addition to the above investments, on March 16, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) board of directors also deliberated and approved the 2022 project investment plan (I). It is understood that the investment plan involves the bathroom reconstruction project of the production plant, the construction project of the new electric bicycle storage shed, the sorghum storage project, the new production capacity project of the health wine Park and the reconstruction and expansion project of Baiyu distillery. The total budget investment is 1.058 billion yuan.
Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) the board of directors deliberated and approved the proposal on the 2022 satellite TV corporate image communication project. The company’s 2022 satellite TV corporate image communication project cost budget is 33 million yuan.
Pre performance
last year’s net profit increased by more than 70%
On March 9, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) issued an announcement on the operation from January to February 2022. According to preliminary calculation, from January to February 2022, the company is expected to achieve a total operating revenue of more than 7.4 billion yuan, with a year-on-year increase of more than 35%; The net profit attributable to shareholders of listed companies is expected to be more than 2.7 billion yuan, with a year-on-year growth rate of more than 50%.
In 2022, the company continued to gather brand potential energy, comprehensively improved operation efficiency, overcame the impact of the epidemic in all sales areas, arranged the peak season of the Spring Festival in advance, the overall market dynamic sales were good, the medium and high-end products such as Qinghua Fenjiu series achieved substantial growth, and the operating revenue and net profit achieved the best level in history.
For the performance of the first two months, Anxin Securities said that Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) continued to focus on brand potential energy and made a successful start in 22 years. It is expected that the growth rate of the company’s gross profit in January and February will be higher than that of the company’s focus products, which is mainly due to the higher than expected net profit of Qinghua Fen products. The nationalization has entered positive feedback, and the product structure continues to improve. The national expansion of the company has entered the positive feedback strengthening stage, the blue and white series has led the growth, the introduction outside Panama is progressing smoothly, the medium and high-end products continue to be in large quantities, and the product structure is expected to be continuously optimized. It is expected that the improvement of product structure is expected to bring about the continuous improvement of the company’s gross profit margin.
Although Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) has not announced the performance in 2021, according to the performance forecast, the net profit has increased significantly. According to the data, the company expects to realize the net profit attributable to the shareholders of Listed Companies in 2021, ranging from 5.234 billion yuan to 5.542 billion yuan, an increase of 2.155 billion yuan to 2.463 billion yuan over the same period of last year, with a year-on-year increase of 70% – 80%.
During the reporting period, the company continued to deepen the “1357 + 10” market layout, increased market expansion in the south of the Yangtze River, and promoted steady breakthroughs in Jiangsu, Zhejiang, Shanghai, Anhui, Guangdong and other markets; Adhering to the product strategy of “grasping blue and white, strengthening waist and stabilizing glass Fen”, we further optimized the product structure and achieved high growth in business performance during the year.
At the beginning of 2021, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) optimized the marketing organization structure and completed the replacement of new and old marketing backbone. The post-80s generation became the main person in charge of regional and provincial managers, and a large number of post-90s marketing personnel filled the front line of sales, which stimulated the endogenous driving force of the marketing team. At the same time, each marketing area has arranged the Spring Festival, Mid Autumn Festival, national day and other sales peak seasons in advance, focused on the banquet group purchase channels, continued terminal promotion activities, continued optimization of dealer structure and channels, and more than 1 million controllable terminal outlets in the national market; Under the guidance of Qinghua 30 (revival version), the sales proportion of medium and high-end Qinghua Fen Liquor series has increased steadily. In 2022, the company will focus on maximizing brand value, focusing on market structure optimization, product structure optimization, quality improvement and management improvement, so as to promote the high-quality development of Fenjiu in an all-round way.
In terms of stock price performance, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) year was dominated by shock, and the stock has fallen by 14.4% since the beginning of the year. So far, the stock has reported 270.34 yuan, with a total market value of 329797 billion yuan.
Baijiu enterprise is expanding .
In addition to Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) , many liquor enterprises are actively expanding their production, and many liquor enterprises such as Maotai, Wuliangye Yibin Co.Ltd(000858) , Luzhou Laojiao Co.Ltd(000568) , Sichuan Swellfun Co.Ltd(600779) , Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) , etc. have also recently released their production expansion plans.
At the end of February, Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) plans to invest 9.076 billion yuan to implement the project of intelligent brewing and storage center in the South plant. It is expected that the annual production capacity of high-quality Luzhou flavor original liquor will be 18000 tons and that of high-quality elegant Maotai flavor original liquor will be 20000 tons, with an average annual net profit of 1.045 billion yuan.
At the end of January, Kweichow Moutai Co.Ltd(600519) announced that it had decided to invest 4.11 billion yuan to implement the phase I construction project of Maotai flavor liquor Xishui tongminba in the 14th five year plan. After the completion of the project, a series of liquor production capacity of about 12000 tons, koji production capacity of about 29400 tons and liquor storage capacity of about 36000 tons could be formed. The construction period was 24 months.
In addition, Wuliangye Yibin Co.Ltd(000858) also announced that it would expand and transform the koji making workshop and increase the original wine production capacity. The main construction contents include koji making workshop and relevant supporting facilities, which will be constructed in two phases. The estimated total investment of the project is 2.75 billion yuan.
At the end of last year, Luzhou Laojiao Co.Ltd(000568) also used land to expand production The Luzhou Laojiao Co.Ltd(000568) announcement said that the Luzhou Laojiao Co.Ltd(000568) Liquor Making Co., Ltd., a wholly owned subsidiary of the company, purchased the land use right of the Baijiu Industrial Park in Luzhou, Sichuan, with its own funds not exceeding 570 million yuan, and used it for production and construction projects.
Previously, Guizhou Province issued the notice on vigorously promoting the implementation of 2500 key private investment projects in 2022, involving more than 60 alcohol projects with a total investment of more than 70 billion yuan, which will add more than 200000 tons of capacity to Guizhou, close to the existing capacity of Guizhou.
In view of the expansion of Baijiu production, Shen Kong Securities believes that this is the structural adjustment under the background of total volume decline. The analysis shows that in recent years, the core production area has been increasing against the trend and the Baijiu production structure has been greatly adjusted. The output, income and profit of core production areas such as Guizhou and Sichuan continued to grow, while the output of non core production areas declined. The proportion of Sichuan liquor continues to increase, and the goal of “one of two bottles” has been achieved. With the influx of more funds, the production capacity of wine enterprises with high-quality production area resources, high brand and product recognition will also be improved. Under the background of the decline of total Baijiu production and sales volume, the current expansion boom is not expected to reverse the downward trend in the whole industry, but more like a structural adjustment. Correspondingly, the Baijiu market will be more competitive.
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