Vats Liquor Chain Store Management Joint Stock Co.Ltd(300755) performance exceeded expectations, and non-standard customization increased promotion

\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 55 Vats Liquor Chain Store Management Joint Stock Co.Ltd(300755) )

Events

On the evening of April 7, 2022, the company released the forecast of the first quarterly report of 2022: the revenue of 2022q1 is expected to be 3.53-3.56 billion yuan, an increase of 50% – 51.28% at the same time; The net profit attributable to the parent company was 248 million yuan – 258 million yuan, an increase of 30.02% – 35.00% at the same time.

Key investment points

The performance exceeded expectations, and famous wines made a great contribution

The company expects the revenue of 2022q1 to be RMB 3.53 billion to RMB 3.56 billion, with a same increase of 50% – 51.28%; The net profit attributable to the parent company was 248 million yuan – 258 million yuan, an increase of 30.02% – 35.00% at the same time; Deduct the non net interest rate of 244 million yuan to 253 million yuan, an increase of 27.8% – 32.8% at the same time.

We believe that there are several reasons for the high performance in the first quarter: 1) the first quarter is the peak season of the Spring Festival, and the company’s famous liquor such as maowu made a great contribution; 2) since March, the epidemic has affected the consumption of Baijiu, but the famous liquor and fine liquor have been in good market. 3) In the first quarter, the company received a tax return of 4.55 million yuan; 4) The internal management process was further optimized, and the market response ability and operation efficiency were significantly improved; 5) The number of direct control terminals continued to expand, and the distribution capacity of chain stores continued to improve; 6) Strengthen the promotion of fine wine.

Non standard customization continued to make efforts, and stores accelerated the nationwide layout

At present, the company has further improved its product structure, built a supply chain system through two pronged efforts, and carried out the procurement of famous wines and the development of fine wines simultaneously. The company has reached strategic cooperation with laigaohuai brand, and newly developed Xijiu · hoard 1988 [Liujin], golden wine ghost, Kweichow Moutai Co.Ltd(600519) wine (gold), Golden Lotus and other fine wines to form a “golden signboard” product matrix. By the end of 2021, the company had more than 30000 retail outlets and 273 new chain stores Vats Liquor Chain Store Management Joint Stock Co.Ltd(300755) flagship stores have successively landed in Shanghai, Wuhan, Xiamen and other cities, effectively enhancing the brand influence. The company has 36 warehouses nationwide, covering 23 provinces and 3 municipalities directly under the central government.

Since 2021, the company has continued to promote the transformation of the number of famous liquor stores and Shanzhi liquor stores in the national network, and actively promote the transformation of the number of famous liquor stores and Shanzhi liquor stores in 2021. Since 2021, the company’s “700 project” has completed the recruitment of more than 600 people, and the coverage of core areas has reached 100%.

Currently Vats Liquor Chain Store Management Joint Stock Co.Ltd(300755) stores have completed version 3.0 upgrade iteration. In addition, the e-commerce platform of “Huazhi preferred” was upgraded and renamed as ” Vats Liquor Chain Store Management Joint Stock Co.Ltd(300755) flagship store”, and the wechat applet and app were updated simultaneously to improve brand recognition. Users can place orders through the ” Vats Liquor Chain Store Management Joint Stock Co.Ltd(300755) flagship store” wechat applet or app, and the company will distribute them to the warehouse through the system to realize product configuration, logistics distribution, etc.

Profit forecast

On the product side, at present, the company takes maowu as the drainage product, makes efforts to develop non-standard customized products, enriches the product matrix, and non-standard customized products have contributed to the profit side. On the channel side, at present, the company implements the development strategy of “small B and large c” channels, steadily expands about Shenzhen Jt Automation Equipment Co.Ltd(300400) stores every year, strengthens the concept of fidelity, and realizes customer transformation through stores and “Huazhi preferred” e-commerce platform. We expect EPS to be 2.49/3.40/4.38 yuan from 2022 to 2024, and the current share price corresponding to PE is 15 / 11 / 8 times respectively, maintaining the “recommended” investment rating.

Risk tips

Macroeconomic downside risk, consumption dragged down by the epidemic, fidelity risk, store opening less than expected, etc.

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