\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 132 Chongqing Brewery Co.Ltd(600132) )
Event: the company released its 2021 annual report. Under the reference standard, the company achieved an operating revenue of 13.119 billion yuan in 2021, with a year-on-year increase of 19.9% 90%, realizing the net profit attributable to the parent company of RMB 1.166 billion, a year-on-year increase of 38.82%, deducting the net profit not attributable to the parent company of RMB 1.143 billion, a year-on-year increase of 76.14%. Among them, 21q4 achieved an operating revenue of 1.933 billion yuan, a year-on-year increase of 1.08%, and realized a net profit attributable to the parent of 122 million yuan, a year-on-year decrease of – 07 million yuan, a deduction of non attributable net profit of 117 million yuan, and a year-on-year increase of – 19 million yuan, turning losses into profits.
Key investment points
The growth rate of high-end products is bright, and the product structure is significantly optimized. In 2021, the company achieved 2.789 million kiloliters of beer sales, a year-on-year increase of + 15.1%, exceeding the industry average; The average ton price increased to 4601 yuan / kiloliter, a year-on-year increase of + 4.95%, realizing the simultaneous rise of volume and price. Under the influence of the epidemic, the sales volume of 21q4 was – 2.06% year-on-year. At the same time, the transmission of price increase was relatively smooth, and the ton price was + 4.40% year-on-year. In terms of products, in 2021, the revenue of high-end / mainstream / economic products was 4.682/65.49/1.605 billion yuan respectively, with a year-on-year increase of + 43.47% / + 10.78% / + 10.64%; Among them, the sales volume of high-end products increased by 40.48%, accounting for + 4.29pct year-on-year. The company’s high-end process continued, and the improvement effect of product structure was remarkable. From a regional perspective, in 2021, the company achieved revenue of 4.193/53.16/3.326 billion yuan in Northwest / central / southern regions respectively, with a year-on-year increase of + 25.24% / + 13.63 / + 27.97%. The company plans to promote the large cities in an orderly manner, and the national expansion will escort the company’s performance.
Gross profit margin & management expense ratio was significantly optimized, and profitability continued to improve. In 2021, the company’s gross profit margin reached 50.9% driven by price increase and product structure optimization, with a year-on-year increase of + 3.26pct (new accounting standards). We believe that under the pressure of rising costs in 22 years, although the company’s gross profit margin is under pressure in the short term, its high-end and large-scale dividends are being realized gradually, and the gross profit margin will still increase steadily in the long term. In 2021, the company’s sales expense ratio (new accounting standards) / management expense ratio was -1.27 / – 2.31pct year-on-year respectively. Affected by the optimization and improvement of operation efficiency and the cost of asset restructuring in 20 years, the management expense decreased significantly; The net profit margin of the company in 2021 was 18.3%, with a year-on-year increase of + 2.27pct, and the annual net profit attributable to the parent company increased by 38.82%.
Wusu’s product matrix is comprehensively improved, and the national layout of production capacity ensures development. In 2022, the company will accelerate the improvement and construction of the product matrix of its large single product Wusu Beer. At present, there are subdivided products with different taste grades and packaging, such as black beer, white beer and Loulan secret brewing. It is expected to quickly open the national sales volume driven by the ultra-high flow of hongwusu and the company’s big city strategy. In terms of production capacity, Dali / Yibin can pulling production line was successfully put into operation around the third quarter of last year, with a new production capacity of 300000 kiloliters; The 130000 kiloliter capacity of Yancheng distillery was also successfully put into operation in July 21. The Xichang / Foshan production expansion and technical transformation project is expected to be put into operation in 22 / 24, and the new capacity will reach 110000 / 500000 kiloliters. The company continues to promote the improvement of canning rate and the technical transformation and capacity expansion of the original factory, which will provide strong support for the national promotion strategy and the cost reduction and efficiency increase plan, and ensure the successful completion of the “sail 22” plan.
Investment suggestion: the upgrading of the company’s product structure is progressing smoothly, the national sales network is gradually opened, and the development potential of its Wusu brand remains. We are optimistic about the company’s development in the transformation period of the beer industry. We predict that the company’s operating revenue will be 15.5621798220.578 billion yuan from 2022 to 2024, with a year-on-year increase of 18.6% / 15.5% / 14.4%. The net profit attributable to the parent company was 1.471/1.905/2.242 billion yuan, with a year-on-year increase of 26.1% / 29.5% / 17.7%. The corresponding EPS is 3.04/3.94/4.63 yuan respectively. Considering the high growth of the company’s products under the background of high-end and nationalization, the company was given a 23-year pe35x valuation and maintained a “buy-b” rating.
Risk tips: product upgrading is less than expected, industry competition intensifies, raw material prices rise more than expected, etc
