\u3000\u30 China High-Speed Railway Technology Co.Ltd(000008) 58 Wuliangye Yibin Co.Ltd(000858) )
Event: the company raised the recommended retail price of the eighth generation Wuliangye Yibin Co.Ltd(000858) from 1399 yuan per bottle to 1499 yuan, which is the same as the current recommended retail price of 53 degree flying Maotai.
Price increase and product structure upgrading. From the perspective of the Spring Festival payment policy in 2022, Wuliangye Yibin Co.Ltd(000858) will continue the sales strategy in 2021, that is, drive the steady growth of performance through the improvement of price and product structure, continue to increase the price of tons of wine and further push up the terminal price will become the main line of Wuliangye Yibin Co.Ltd(000858) development ideas this year. After the Spring Festival, Wuliangye Yibin Co.Ltd(000858) raised the recommended retail price to 1499 yuan, which is still a continuation of this idea. It is expected to continue to raise the wholesale price, showing the company’s confidence and determination to stabilize the price band of 1000 yuan for the main products. From the perspective of product structure, classic Wuliangye Yibin Co.Ltd(000858) continues to lay out the price band of 2000 + and will make further efforts this year on the basis of better sales last year. With the deepening of reform, the series of wine is stable and good, and the improvement of product structure is worth looking forward to. In the large consumption upgrading environment, the company’s main price band stands firm, and the 1000 yuan price band is of great significance to the long-term and stable development of the company. From the current determination of the company, the wholesale price band stands firm this year, and the 1000 yuan price band is expected.
With the establishment of the leading group, stable growth can be expected. The new management team of the company has been basically established, and the new team is familiar with the operation Wuliangye Yibin Co.Ltd(000858) follow up execution is expected to be further improved, and a series of new reforms including salary system, channel management system optimization and operation efficiency improvement are also expected. Over the past year, Wuliangye Yibin Co.Ltd(000858) has experienced the impact of anti-corruption, leadership changes and other events, and the market is worried about the stable development trend of Wuliangye Yibin Co.Ltd(000858) in the future. With the gradual implementation of personnel adjustment, new marketing reform measures may be put forward, the follow-up execution is expected to be further improved, and the long-term steady growth of the company can be expected. In the medium and long term, the company has a prominent brand position and has a strong competitive advantage in the high-end market. The medium and long-term volume and price growth trend of the company, as the first high-end brand of Luzhou flavor, is still relatively determinable.
Profit forecast and investment rating of the company: we expect the net profit of the company from 2021 to 2023 to be 23.455 billion yuan, 27.490 billion yuan and 31.844 billion yuan respectively, corresponding to EPS of 6.04, 7.08 and 8.20 yuan respectively. The current share price corresponds to 21 times the 22-year performance PE. They are optimistic about the company’s ability to continue to gain market share in high-end wine tracks and the release of brand tension under the high-end strategy, and give a rating of “strongly recommended”.
Risk tips: the demand is down, the wholesale price of competitive products has fallen sharply, and the optimization of product structure does not meet expectations.
