See Baijiu magnate expand production. On March 16, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) announced that it plans to invest 9.1 billion yuan to build and implement the expansion project of original liquor production and storage of Fenjiu 2030 technical transformation (phase I), and all the funds required will be raised by the enterprise itself.
According to the statistics of reporters, since 2022, Kweichow Moutai Co.Ltd(600519) , Wuliangye Yibin Co.Ltd(000858) and Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) have announced plans for large-scale expansion of their products, and most of them focus on original wine projects, highlighting the industry’s confidence in the rapid growth of high-end baijiu.
Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) proposed technical transformation, production expansion and storage increase
Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) said that based on the company’s long-term development strategy, the “14th Five-Year” master plan and the in-depth analysis of the Baijiu industry and the actual situation of the enterprises themselves, the company plans to invest 9 billion 100 million yuan to build the 2030 production of liquor and energy storage and expansion project (phase I), which occupies 1932 Mu and the construction period is 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.
It is estimated that after the project is put into operation, under the condition of Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) normal operation, the sales revenue in the year when the production capacity is reached is expected to be 8.118 billion yuan, the total annual profit is 2.858 billion yuan, and the annual investment profit rate is 20.4%. Therefore, the project has good economic benefits and strong anti risk ability.
For the significance of the project, 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, the demand for high-quality production capacity has been increasing. 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 directly contribute to the higher quality development of Fen Liquor.
The investment capital of 9.1 billion yuan is raised by the company itself. However, for Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) with rich family wealth and rapid growth in performance in recent years, this will not constitute cash flow pressure. According to the newly released business situation, in the first two months of this year, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) is expected to achieve a total operating revenue of more than 7.4 billion yuan, an increase of more than 35% year-on-year; It is expected to achieve a net profit of more than 2.7 billion yuan, a year-on-year increase of more than 50%.
industry overweight raw wine capacity
Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) this expansion aims to improve the production and storage capacity of original wine, while Jiugui Liquor Co.Ltd(000799) , Wuliangye Yibin Co.Ltd(000858) , Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) and other peers have taken the lead.
Jiugui Liquor Co.Ltd(000799) 2021 announced in August that it planned to build a new phase II project of production zone III with its own capital of 1.5 billion yuan to improve the company’s base liquor production capacity Wuliangye Yibin Co.Ltd(000858) 2022 announced that the original liquor production capacity will be increased and the koji making workshop will be expanded and reconstructed. The total investment of the project is estimated to be 2.75 billion yuan.
In February 2022, Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) announced that it would invest 9.1 billion yuan to expand production, so as to increase the annual production capacity of 18000 tons of high-quality Luzhou flavor original wine and 20000 tons of high-quality elegant Maotai flavor original wine. At that time, in response to the dispute over “whether there will be overcapacity”, the person in charge of Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) told reporters that the company’s revenue growth in recent years was mainly driven by medium and high-end products, and this expansion was mainly to prepare for medium and high-end products in the future.
In the record of investors’ visit and reception disclosed on the evening of the 16th, Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) said that from January to February this year, the growth rate of secondary high-end products with a price of 100 yuan to 300 yuan exceeded expectations. This may verify the company’s production expansion logic.
Wuliangye Yibin Co.Ltd(000858) , which is optimistic about the growth of secondary high-end products, is also promising. On the afternoon of March 11, Wuliangye Yibin Co.Ltd(000858) held an online investor exchange meeting. Zeng Congqin, chairman of the company, said that Wuliangye Yibin Co.Ltd(000858) continues to be in an important window period and strategic opportunity period of a new round of high-quality development. From the macro environment, the fundamentals of China’s economic stability and long-term improvement have not changed; From the perspective of industry development, structural growth is still the main melody of industry development, and the trend towards three concentration of advantageous brands, advantageous enterprises and advantageous production areas is still further accelerated. More importantly, the growth logic and fundamentals of the Baijiu industry have strong support, and the price of 1000 yuan is continuously expanding.
medium and high-end products help wine enterprises “make a good start”
According to the reporter’s statistics, seven liquor enterprises, including Kweichow Moutai Co.Ltd(600519) , Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) , Jiugui Liquor Co.Ltd(000799) , Shede Spirits Co.Ltd(600702) and others, have announced the “good start” data for the first two months of 2022 or predicted the high growth performance in the first quarter, and most of them are due to the growth of medium and high-end products.
Kweichow Moutai Co.Ltd(600519) recently announced that the company’s revenue and net profit increased by about 20% from January to February, mainly due to the good sales momentum of products during the Spring Festival and the booming market trend.
Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) disclosed in the business announcement that the company arranged the peak season of the Spring Festival in advance, the overall market sales were good, the middle and high-end products such as Qinghua Fen Liquor series increased significantly, and the operating revenue and net profit in the first two months reached the best level in history.
Shede Spirits Co.Ltd(600702) 3 announced on March 16 that it is expected to achieve a net profit of 460 million yuan to 560 million yuan in the first quarter, with a year-on-year increase of 52% to 85%. The main reason for the significant increase in performance is that the company continues to promote the strategy of old wine, and the quality of old wine is further recognized. It is understood that the old wine strategy has laid the foundation for Shede Spirits Co.Ltd(600702) realizing the steady rise in the price of medium and high-end products and the increase in the sales volume by multiple orders of magnitude.
