\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 132 Chongqing Brewery Co.Ltd(600132) )
Event: the company announced that the company’s operating revenue and net profit attributable to the parent company in 2021 were RMB 13.119 billion and RMB 1.166 billion respectively, with an increase of 19.9% and 38.82% respectively (for reference, the same below); In 2021q4, the operating revenue and net profit were RMB 1.933 billion and RMB 122 million respectively.
The growth rate of high-end products is bright, and Q4 performance turns losses into profits. In 2021, the sales volume of beer was 2.7894 million kiloliters, an increase of 15.10% over the same period of last year. The company’s high-grade beer includes Wusu, Carlsberg, 1664, etc. the sales volume in 2021 was 661500 kiloliters, with a year-on-year increase of 40.48%, with a bright growth rate; This year, the company achieved a sales revenue of 4.682 billion yuan, with a year-on-year increase of 43.47%, injecting a strong driving force into the company’s profit growth. The revenue of local brands this year was 8.320 billion yuan, a year-on-year increase of 20.28%, accounting for more than 60% of the total main revenue, laying the foundation for the rapid growth of the company. In 2021, the growth rate of revenue / net profit was 19.9% / 38.82% respectively, and the growth rate of profit exceeded that of revenue; Among them, the net profit of 2021q4 was 122 million yuan, which turned losses into profits year-on-year. The reason is that the company has adopted the strategy of targeted price increase for different regions and brands since 2021q3, which is effective. It also benefits from the company’s continuous promotion of high-end business strategy of products, so as to improve the company’s overall profitability and market competitiveness. From the perspective of main revenue by region, the revenue of northwest region was 4.193 billion yuan, with a year-on-year increase of 25.24%, and that of South region was 3.326 billion yuan, with a year-on-year increase of 27.97%, both exceeding the growth rate of overall revenue. The company’s business expanded smoothly to South China and Northwest China.
Cost control, efficiency improvement and profit margin improvement. The company’s accounting policy changes will adjust the transportation expenses from the sales expenses to the operating costs, and take the former as the comparable standard. In 2021, the cost per ton was 2156 yuan / kiloliter, with a year-on-year increase of – 3.3%, and the gross profit margin increased by 0.3pct to 50.9%. Administrative expenses decreased by 24.44% year-on-year, of which wages and salaries decreased by 13.13% year-on-year, and the rate of administrative expenses decreased from -2.3pct to 3.9% year-on-year, mainly due to the cost savings brought by the improvement of the company’s organizational optimization efficiency and the implementation of operational cost management projects; Under comparable standards, the sales expense rate rose from + 4.8pct to 20.1% year-on-year. The increase was mainly due to the increase of market advertising expenses to drive the development of business, the cancellation of social security policy relief after the epidemic, and the increase of business bonus brought by annual salary adjustment and performance growth. The company continued to promote the high-end business strategy of products, while controlling fees and improving efficiency. Under the standard of preparation, the net interest rate attributable to the parent company was + 1.2pct to 8.9% year-on-year, and the net interest rate not attributable to the parent company was + 2.8% to 8.7% year-on-year.
The production expansion plan covers multiple regions to meet the supply demand of market growth. In order to further optimize the production capacity layout, Dali and Yibin high-speed can pulling lines, Yancheng distillery have been put into operation, and the production capacity layout tends to be reasonable Chongqing Brewery Co.Ltd(600132) holding Carlsberg heavy beer plans to build a new production base with an annual production capacity of 500000 kiloliters of beer in Sanshui District, Foshan City, Guangdong Province, with a fixed asset investment of about 1.03 billion yuan, and set up Carlsberg Foshan company in Foshan City. The project is expected to start in July 2022 and put into operation in 2024. Xichang company, a subsidiary of Carlsberg heavy beer, plans to invest in the expansion of production capacity from 38000 kiloliters per year to 110000 kiloliters per year. After these projects are put into operation, they will effectively alleviate the supply pressure.
Investment suggestion: “Yangfan 27” strategic precision marketing, Chongqing brand continues to revitalize its brand image and strengthen local connection; Wusu Beer continues to promote high-end. On the one hand, Lebao beer establishes a younger international brand image through more attitude music marketing. Continue to maintain the buy-b rating. It is estimated that the company’s earnings per share from 2022 to 2024 will be 2.75/3.56/4.08 yuan, and the six-month target price will be 137.67 yuan, equivalent to 50x P / E ratio in 2022.
Risk tip: the high-end process is not as expected; The impact of the epidemic exceeded expectations; Competition in the high-end beer industry has intensified.
