\u3000\u3 Shengda Resources Co.Ltd(000603) 919 Jinhui Liquor Co.Ltd(603919) )
Structural optimization and market development have achieved remarkable results. The company’s long-term growth momentum remains unchanged and maintains the “overweight” rating
The company achieved annual revenue of 1.788 billion yuan, a year-on-year increase of + 3.34%; The net profit attributable to the parent company was 325 million yuan, a year-on-year increase of – 1.95%. Due to the impact of the epidemic on the performance in 2021, we lowered the profit forecast for 20222023 and added the profit forecast for 2024. It is estimated that the net profit of the company in 20222024 will be 438 (- 69) million yuan, 548 (- 100) million yuan and 683 million yuan respectively, and the EPS will be 86 (- 0.14) yuan, 108 (- 0.20) yuan and 1.35 yuan respectively. The current share price corresponding to PE is 32.5, 26.0 and 20.9 times respectively. The company has made outstanding achievements in marketing transformation and market development. The two long-term core driving forces of high-end and development outside the province remain unchanged and maintain the “overweight” rating.
The epidemic had a great impact in the fourth quarter, and the core growth driving force of high-end products was prominent
In the fourth quarter, affected by the epidemic situation in core sales areas such as Gansu and Shaanxi, sales stopped for nearly two months, resulting in negative performance growth. However, from the perspective of splitting the product structure, high-end products still maintain a good growth rate. In 2021, high-end, middle-grade and low-end products achieved revenue of 1.095 billion yuan, 652 million yuan and 16 million yuan respectively, with a year-on-year increase of + 26.2%, – 19.5% and – 43.3% respectively. In 2021, the company actively promoted the transformation of marketing mode and continuously improved the brand power of products, with remarkable results.
The Northwest market continued to dig deep, and the East China market made a breakthrough
In 2021, the sales revenue in the province was 1.371 billion yuan, with a year-on-year increase of – 3.18%, and that in H2 province was 625 million yuan, with a year-on-year increase of – 26.04%, mainly because the epidemic in the fourth quarter had a great impact on Lanzhou and its surrounding areas and the southeast of Gansu Province. The revenue outside the province reached 179 million yuan, a year-on-year increase of + 33.96%, accounting for 8.71 PCT to 22.24% of the operating revenue. In recent years, the company has seized the opportunity of the Northwest market, created multiple model markets, and continuously improved the recognition of channels and consumers. In 2021, the company initially completed the preparations for the East China market, and East China is expected to become a new growth point.
The gross profit margin increased slightly, and the rising expense rate led to a decline in the net profit margin
Benefiting from the increase in the proportion of high-end products, the gross profit margin in 2021 increased by 1.23pct to 63.74% year-on-year. Under the background of the company’s increasing development outside the province and focusing on high-end products, the sales expense rate increased by 2.71 PCT to 15.55%. The tax surcharge ratio, management expense ratio, R & D expense ratio and financial expense ratio were 14.16%, 10.05%, 2.63% and – 0.41% respectively, with year-on-year changes of + 0.19, + 0.59, + 0.31 and + 0.01pct respectively, with little change. Under the comprehensive effect, the net interest rate decreased by 0.99pct to 18.15% year-on-year.
Risk tip: macroeconomic fluctuations lead to a decline in demand, and the development of new markets is less than expected
