On April 1, Chongqing Brewery Co.Ltd(600132) ( Chongqing Brewery Co.Ltd(600132) . SH) released its 2021 annual report, which is also its first annual “report card” after completing major asset restructuring.
In 2021, Chongqing Brewery Co.Ltd(600132) achieved an operating revenue of 13.119 billion yuan, an increase of 19.90% over the same period of last year; The net profit attributable to the shareholders of the company was 1.166 billion yuan, a year-on-year increase of 8.30%.
For the double increase of revenue and net profit, Chongqing Brewery Co.Ltd(600132) said that it was mainly due to the growth of sales volume, high-end products, continuous innovation of sales model and other reasons.
volume and price increase
According to the National Bureau of statistics, the total output of beer enterprises above Designated Size in China was 356243 million kiloliters in 2021, with a year-on-year increase of 5.60%, which is also the first growth in the beer industry after peaking in 2013 and negative growth for eight consecutive years.
2021, Chongqing Brewery Co.Ltd(600132) achieved a beer sales volume of 2789400 kiloliters, an increase of 15.10% over 2423600 kiloliters in the same period of last year, realizing a growth rate of nearly three times the average level of the market
In December 2020, Chongqing Brewery Co.Ltd(600132) and Carlsberg, the major shareholder, completed a major asset restructuring. Carlsberg injected its high-quality beer assets controlled in China into Chongqing Brewery Co.Ltd(600132) , Chongqing Brewery Co.Ltd(600132) which became the only platform for Carlsberg to operate beer assets in China.
Since the completion of asset restructuring, Chongqing Brewery Co.Ltd(600132) has grown from a regional beer enterprise to a national beer enterprise. Its production network has increased from 14 holding (participating) wineries in three provinces to 26 holding (participating) wineries in nine provinces. Its core market has expanded from Chongqing, Sichuan and Hunan provinces to Xinjiang, Ningxia, Yunnan, Guangdong and East China, and achieved national layout.
In terms of regions, the revenue of Chongqing Brewery Co.Ltd(600132) northwest and South regions increased by more than 20% year-on-year in 2021. Among them, the income of Northwest China was 4.193 billion yuan, an increase of 25.24% year-on-year; The revenue of the Southern District was 3.326 billion yuan, an increase of 27.97% year-on-year; The revenue of the central region was 5.316 billion yuan, a year-on-year increase of 13.63%.
high end products are also another major reason for the performance growth of Chongqing Brewery Co.Ltd(600132) 2021. The revenue of high-end brand beer is as high as 4.682 billion yuan
At present, Chongqing Brewery Co.Ltd(600132) has a “6 + 6” brand portfolio, including Chongqing, Wusu, Xixia, Fenghuaxueyue, Dali, Beijing a and other local strong brands, as well as Carlsberg, Lebao, 1664, Greenberg, Brooklyn, summer fun and other international high-end brandsP align = “center” source: 2021 Annual Report
In terms of product grade, the consumer price of more than 10 yuan is high-grade, 6-9 yuan is the mainstream, and less than 6 yuan is economic 2021: the company’s high-end brand beer, mainly Wusu, Carlsberg and 1664, contributed a lot. Its revenue increased by 43.47% to 4.682 billion yuan year-on-year, its sales increased by 40.48% to 661500 kiloliters year-on-year, and its gross profit margin was as high as 61.74%, a slight increase of 0.21% year-on-year
In the high-end brand beer, the popular product “deadly big Wusu” is particularly noteworthy.
According to the Research Report of open source securities, Wusu is positioned as a high-end product, which is bound to barbecue and other catering scenes. The brand positioning above the hard core is deeply rooted in the hearts of the people, and word-of-mouth marketing is successful. Under the high brand potential, the self ordering rate of consumers is high. In the long run, Wusu is expected to become a high-end product of more than one million tons after Budweiser classic and Chunsheng series.
Puyin international securities research report pointed out that Wusu is still in the stage of rapid growth at this stage, and there is still a large room for growth in the future. With the continuous expansion of product matrix, the continuous enrichment of marketing means and the continuous promotion of big city plan, we predict that Wusu will continue to maintain a rapid growth rate in 2022.
high end competition intensifies
The beer industry used to be in a state of low profit for a long time, and low price and low quality once became synonymous with domestic beer. Now, as the beer industry enters the era of high-end, many beer companies are also planning for high-end development.
He Yong, Secretary General of China Wine Association and chairman of beer branch, once said that 2021 is the first year of high-end beer in China. From the overall performance of Chinese enterprises, the high-end development of China’s beer industry has entered a new era of prosperity.
China Resources beer (00291. HK) put forward the 9-year strategy of “3 + 3 + 3” earlier. According to the strategy, 2022 is the sprint stage of the second 3-year plan “decisive battle for high-end and quality development”. In the product structure of China Resources beer, Heineken is obviously more dominant in the high-end field, while snowflake beer still has room for progress. In 2021, snowflake beer launched the super high-end beer “Li”, which is 999 yuan / box (2 bottles).
Tsingtao Brewery Company Limited(600600) ( Tsingtao Brewery Company Limited(600600) . SH) adheres to the brand strategy of ” Tsingtao Brewery Company Limited(600600) main brand + second brand of Laoshan beer”, complies with the consumption upgrading trend of China’s beer market, and speeds up the layout of high-end and ultra-high-end markets. On January 9, 2022, Tsingtao Brewery Company Limited(600600) held a new product launch and released the super high-end new product “Legend of the first world”, with an official price of 1399 yuan / bottle.
Chongqing Brewery Co.Ltd(600132) is also unwilling to lag behind. In 2021 Chongqing Brewery Co.Ltd(600132) continues to promote the intensive cultivation and expansion of key strategic projects of Yangfan 22, based on the diversification of the company’s product structure and brand after asset restructuring, and relying on the brand combination of “international high-end brand + local strong brand”, promote the high-end products and promote the continuous innovation of sales model.
At the same time, Chongqing Brewery Co.Ltd(600132) is also optimizing its production capacity. Since 2015, the company has shut down / transferred many inefficient factories, and the capacity layout of the supply network has been further optimized. At present, Chongqing Brewery Co.Ltd(600132) has a design capacity of 2.92 million kiloliters. In 2021, the company arranged Foshan production base project and Xichang distillery technical transformation and capacity expansion project to reserve capacity for future sales growth.
more than 80% of profits are used for dividend
It is worth mentioning that Chongqing Brewery Co.Ltd(600132) will send a big red envelope in 2021 after 2020.
annual dividend plan shows that in 2021, the company plans to distribute cash dividends of 20 yuan (including tax) for every 10 shares, totaling 968 million yuan, accounting for 83.02% of the current net profit attributable to the parent company. After the implementation of the distribution plan, the remaining undistributed profit in the consolidated statements of the company is 72 million yuan and the remaining undistributed profit in the statements of the parent company is 496 million yuan
From 2018 to 2020, Chongqing Brewery Co.Ltd(600132) cash dividends were 387 million yuan, 678 million yuan and 0 million yuan respectively, with a cumulative dividend of 1.065 billion yuan in three years, while the net profit attributable to the parent company in the same period was 404 million yuan, 1.043 billion yuan and 1.077 billion yuan respectively, totaling 2.524 billion yuan, with a cumulative dividend rate of 42.19% in three years.
In terms of shareholder structure, by the end of 2021, Carlsberg Brewery Hong Kong Co., Ltd. held 206 million shares of the company, accounting for 42.54%, and Carlsberg Chongqing Ltd. (Carlsberg Chongqing Co., Ltd.) held 84.5 million shares, accounting for 17.46%. Based on this calculation, Carlsberg will receive 580 million yuan in cash 23456 .
In addition, compared with the third quarter of 2021, the top ten shareholders of BOC China rich theme fund and Hong Kong Central Clearing Co., Ltd. (northbound capital) continued to increase their holdings at the end of the year, with a total of 13107400 shares and 41506800 shares.
Huitianfu consumer industry mixed securities investment fund and GF growth selected mixed securities investment fund reduced their holdings slightly in the fourth quarter.
The national social security fund’s 115 portfolio, Penghua Zhongzheng liquor index Securities Investment Fund (LOF) and Yinhua Fuli selected hybrid securities investment fund are among the top ten shareholders in the fourth quarter, Citic Securities Company Limited(600030) , Macao monetary authority and Hongde Ruize hybrid securities investment fund.
However, since 2022, the share price of beer sector has experienced a large proportion of correction. The data show that Chongqing Brewery Co.Ltd(600132) share price has reached 25.88% this year.
On April 1, Chongqing Brewery Co.Ltd(600132) shares closed at 112.16 yuan, up 4.60%, with a total market value of 54.3 billion yuan.
