\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 197 Xinjiang Yilite Industry Co.Ltd(600197) )
Xinjiang local Baijiu, before stepping on the road. Xinjiang Yilite Industry Co.Ltd(600197) is the leading Baijiu in Xinjiang. The real control is the four division of Xinjiang Corps. In 1999, the company was restructured and listed. After the management change in 2016, the new strategy was put forward: focusing on Baijiu liquor, Eli Wang, Eli Laojiao, Yili old wine and Xinjiang Yilite Industry Co.Ltd(600197) tune, further adjusting the synergy structure and speeding up the market layout.
Xinjiang's economy is taking off again and the epidemic prevention and control policies are refined. In December 2021, party secretary Ma Xingrui took office. After taking office, the focus of Xinjiang's work shifted from maintaining stability to high-quality economic development. Various measures highlighted the determination of Xinjiang's economic development. After taking office, his advocacy of "improving the quality, increasing efficiency and strengthening the stamina of Xinjiang's economic development" highlights his determination to develop the economy with high quality, and Xinjiang's economy is expected to glow with new vitality. In addition, after the new secretary took office, he put more emphasis on fine control, resolutely prevented simplification, one size fits all and overweight at all levels, and the consumption scene was significantly restored.
There are obvious advantages in the province, and efforts are made to establish competitive advantages at multiple levels. In 2020 Baijiu Baijiu accounted for 38.4% of the annual output of Xinjiang baijiu. In 2019, the liquor market in Xinjiang was about 4 billion, and the company occupied more than half of the market share. With the upgrading of Baijiu consumption in Xinjiang, the company has enough products to undertake the needs of consumption upgrading crowd, such as ecological small cellars and small wine can undertake the consumption upgrading of small old cellars. The company plans to launch the upgraded version of yiliwang liquor and other high-end products in the future to fully enjoy the secondary high-end capacity expansion bonus. The company established a brand operation company in 2017 and invested to establish an e-commerce company in 2020. The establishment of brand operation companies and e-commerce companies can improve the company's "dealer + self operated + online" sales system and broaden sales channels. The company gives full incentives to dealers and shares development achievements with dealers, which is conducive to maintaining dealer loyalty and further developing the market.
Expand the market outside the province in combination with endowment and make efforts to layout e-commerce channels. The market potential outside Xinjiang is huge. The company plans to speed up the process of city Nationalization: implement the market promotion strategy of Zhejiang and Jiangsu, and realize the improvement of product brand image and restorative growth of sales volume in Zhejiang area; Take the lead in achieving sales breakthroughs in Shaanxi and Guangdong, and drive the development of potential markets such as Henan and Gansu. Zhejiang, Jiangsu and Guangdong have developed economies, leading the country in per capita GDP and high residents' consumption capacity; Henan, Gansu and other places have a long wine culture, and the markets outside Xinjiang have great development potential. Cadres and tourists in Xinjiang can improve the brand awareness of Xinjiang Yilite Industry Co.Ltd(600197) and accelerate the pace of Xinjiang Yilite Industry Co.Ltd(600197) nationalization and high-end.
Investment suggestion: we expect the revenue growth rate of the company from 2021 to 2023 to be 9.4%, 25.8% and 20.6% respectively, and the net profit growth rate to be 0.8%, 41.9% and 29.4% respectively, with outstanding growth; Given the investment rating of Buy-A, the six-month target price is 34 yuan, which is equivalent to 25 times the dynamic P / E ratio in 2023.
Risk tip: the economic vitality of Xinjiang is less than expected, the epidemic factors are disturbed, the expansion outside the province is less than expected, and the hypothetical conditions are less than expected.
