\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 132 Chongqing Brewery Co.Ltd(600132) )
Matters:
The company released the financial report for 2021 and achieved an operating revenue of 13.119 billion yuan, a year-on-year increase of 19.90%; The net profit disclosed in the statutory statement was RMB 1.382 billion, an increase of RMB 3.082 billion year-on-year; The net profit deducted from non parent company was 1.143 billion yuan, with a year-on-year increase of 76.14% and 141.30% year-on-year increase of statutory disclosure. Among them, 2021q4 achieved an operating revenue of 1.933 billion yuan, a year-on-year increase of 1.08%; The net profit attributable to the parent company was 122 million yuan, which was – 07 million yuan in the same period in 2020; The net profit deducted from non parent company is 117 million yuan, which is – 19 million yuan in the same period of 2020. It is proposed to distribute a cash dividend of 20 yuan (including tax) for every 10 shares.
Ping An View:
Actively improve the efficiency of fee investment and enhance the profitability. In 2021, although the prices of raw barley and various packaging materials increased significantly, the company achieved a gross profit margin of 50.94% in the whole year, with a slight increase of 0.33pcts year-on-year by continuously improving the cost investment efficiency and reducing costs through Carlsberg’s global procurement advantages. Due to the increase of market advertising expenses and the cancellation of social security policy relief after the epidemic, the business bonus brought by annual salary adjustment and performance growth increased, and the sales expenses increased. However, with the rapid growth of revenue, the annual sales expense rate was 16.87%, a year-on-year decrease of 4.22pcts. At the same time, the cost savings brought by the improvement of organizational optimization efficiency and the implementation of operation cost management projects, as well as the impact of asset restructuring costs in 2020, reduced the management costs by 2.31 PCTs to 3.94%. The annual net interest rate was 18.29%, with a year-on-year increase of 2.27pcts.
Both production and marketing are booming, and high-end continues to be promoted. In 2021, the company achieved a beer sales volume of 2.7894 million kiloliters, a year-on-year increase of 15.10%, while the total output of beer enterprises above national scale according to the Bureau of statistics increased by 5.60% year-on-year, and the company achieved a growth rate of nearly three times the average level of the market. Among them, the revenue of international brands reached 4.515 billion yuan, a year-on-year increase of 21.77%; Local brands achieved a revenue of 8.32 billion yuan, a year-on-year increase of 20.28%. The company continues to promote the high-end business strategy of products, vigorously promote the growth of high-end products, and improve the sales volume and sales proportion of high-end products, so as to improve the overall profitability and market competitiveness of the company. In terms of products, the sales volume of high-end products was 661500 tons, a year-on-year increase of 40.5%; The revenue contributed 4.682 billion yuan, a year-on-year increase of 43.47%. The sales volume of mainstream products was 1.6145 million tons, a year-on-year increase of 10.6%; Contributed revenue of 6.549 billion yuan, a year-on-year increase of 10.78%. The sales volume of economic products was 513400 tons, with a year-on-year increase of 4.14%; The revenue contributed 1.605 billion yuan, a year-on-year increase of 10.64%.
“International high-end brand + local strong brand”, the national space is opened. After completing the major asset restructuring with Carlsberg, the company has grown into 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 to Xinjiang, Ningxia, Yunnan, Guangdong and East China, realizing national layout and promoting the opening of national space for products. In 2021, the northwest region achieved a revenue of 4.193 billion yuan, a year-on-year increase of 25.24%, accounting for 32.66%; The central region achieved a revenue of 5.316 billion yuan, a year-on-year increase of 13.63%, accounting for 41.42%; The South District achieved a revenue of 3.326 billion yuan, a year-on-year increase of 27.97%, accounting for 25.91%.
Investment suggestion: after the reorganization, the company has become the only platform for Carlsberg to operate beer assets in China, and its core competitiveness has been comprehensively enhanced. We are optimistic about Carlsberg Wusu’s high-end playing method. With the continuous expansion of large and medium-sized cities, it is expected to be rapid and large-scale under the pull of strong brands and channels, and there will be sufficient growth momentum in the next 3-5 years. Considering that the cost continues to rise, we adjust the company’s EPS from 2022 to 2024 to 3.02/3.80/4.64 yuan (the previous value is expected to be 3.09/3.72 yuan for 20222023 EPS respectively), and the current share price corresponds to pe37.00 yuan 1X, 29.5x, 24.2x, maintain the “recommended” rating.
Risk warning: the nationalization of USSR is not as expected; 1664 promotion is not as expected; The cost of raw materials such as barley and packaging materials rose higher than expected; Industry demand is less than expected; Industry competition intensifies; Food safety risks.
