\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 132 Chongqing Brewery Co.Ltd(600132) )
Event: Chongqing Brewery Co.Ltd(600132) released the annual report of 2021. During the reporting period, the company achieved revenue / net profit attributable to parent company of RMB 13.1191166 billion, with a year-on-year increase of 19.90% / 38.82%, deducting net profit not attributable to parent company of RMB 1.143 billion, with 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%; The net profit attributable to the parent company was 122 million yuan, with a loss of 7.09 million yuan in the same period of last year; Deduct the net profit not attributable to the parent company of 117 million yuan, with a loss of 18.95 million yuan in the same period of last year (the data in 2020 is for reference).
Strong growth in high-end products and rising volume and price drive revenue growth. In 2021, the company achieved 2.7894 million kiloliters of beer sales, an increase of 15.10% over 2020, of which ASP increased by 4.95% year-on-year. 1) By product grade: the sales volume of high-grade / mainstream / economic grade products is 66.15/161.45513400 kiloliters, yoy + 40.48% / + 10.60% / + 4.14%, and the revenue is 4.68/65.5/1.6 billion yuan respectively, with a year-on-year increase of + 43.5% / + 10.8% / + 10.6%. In 2021, the company vigorously promoted the growth of high-end products in terms of structure, and the sales volume, revenue and proportion of high-end products increased significantly, promoting the high-end of product structure. 2) By Region: in 2021, the company sold 8919 / 122.14 / 676100 kiloliters in Northwest / central / Southern District, yoy + 20.75% / + 12.19% / + 13.40%, realizing revenue of 4.19/63.2/3.33 billion yuan respectively, with a year-on-year increase of + 25.2% / + 13.6% / + 28.0%.
The increase of high-end proportion pushed up the gross profit margin, and the strong cost control led to the improvement of net profit margin. 1) In 2021, the company’s gross profit margin was 50.94%, an increase of 3.26pct over the same period of last year; 2) In terms of expenses, the company’s sales / management expense ratio in 2021 was 16.87% / 3.94%, a year-on-year decrease of 1.27pcts/2.31pcts; The financial expenses changed from negative to positive, from the net financial expenditure of 6.2235 million yuan in 2020 to the net financial income of 155808 million yuan in 2021, mainly due to the decrease of interest expenses compared with the same period in 2020 and other financial expenses related to actuary. 3) Overall, the net profit margin of the company increased by 2.27pct to 18.29% year-on-year in 2021 due to the improvement of gross profit margin and cost efficiency.
Wusu’s product portfolio outside Xinjiang is further enriched: this year, it is expected that 15 cities will be added to the big cities with heavy beer, and the number will be further expanded to 76. In the future, the big cities plan to enter the development stage of all channel + all combination (version 2.0), so as to further give full play to the advantages of the company’s 6 + 6 product matrix combination. On the one hand, Wusu began to enter the entertainment channel last year and its performance exceeded expectations; On the other hand, Wusu outside Xinjiang will add white beer and black beer this year, and the taste of white beer has been adjusted (from Belgian taste to German taste). The further enrichment of Wusu product matrix will help promote the further development of the brand. We are optimistic about the company’s performance in the past 22 years and believe that the company will continue to maintain a strong growth momentum driven by the big city plan + products.
Profit forecast, valuation and rating: we continue to be optimistic about the growth potential of Chongqing Brewery Co.Ltd(600132) and raise the net profit of Chongqing Brewery Co.Ltd(600132) 22-23 to RMB 1.466/1.791 billion (1% / 2% higher than the previous time), and introduce a 24-year net profit forecast of RMB 2.136 billion. The current share price corresponds to the 22-year PE of 37x, which has fallen below the valuation center in recent three years. Maintain the “buy” rating and the target price is 186 yuan.
Risk warning: the intensity of marginal competition in the industry is higher than expected; Higher than expected rise in raw material costs
