\u3000\u3 Shengda Resources Co.Ltd(000603) 919 Jinhui Liquor Co.Ltd(603919) )
Events Jinhui Liquor Co.Ltd(603919) released the first quarterly report of 22 years. During the reporting period, the operating revenue was 710 million yuan, a year-on-year increase of 38.8%; The net profit attributable to the parent company was 160 million yuan, a year-on-year increase of 42.8%; The net profit attributable to the parent company after deduction was 160 million yuan, a year-on-year increase of 41.9%.
High grade Baijiu helped to upgrade the structure and accelerate the growth of revenue performance. In the first quarter of the year, the company realized a revenue of 440 million yuan for high-end products with more than 100 yuan, a year-on-year increase of 44.5%, 250 million yuan for mid-range products such as century Samsung and four-star, a year-on-year increase of 29.2%, and 07 million yuan for low-end products such as century two star and Golden Emblem two star, a year-on-year increase of 122.9%. Overall, the proportion of high-end products increased by 0.6pct to 62.8% compared with Q4 in 21 years. During the reporting period, the sales expense rate increased by 4.1pct to 15.7% compared with the same period last year, mainly due to the company’s increased investment in advertising, key customer operation and personnel expansion, and the management expense rate decreased by 2% year-on-year, mainly due to the rapid growth of revenue. The contract liabilities in the first quarter increased by 60 million yuan to 400 million yuan compared with the end of last year, and the sales in the second quarter of the future are highly deterministic.
“Key customer operation + deep distribution” two wheel drive to accelerate the layout outside the province. In the first quarter, the company achieved revenue of RMB 220 / 1.8 / 0.7 / 0.6 / 170 million in Southeast Gansu / Lanzhou and surrounding / Central Gansu / western Gansu / other regions, and the market outside the province increased by 1.5pct to 22% compared with the end of last year. At present, the market demand space in the province is still large. The company mainly adopts the strategy of “one place, one policy” to carry out differentiated marketing of products by means of the combination of key customer operation and in-depth distribution. This measure is also the top priority for the company to improve the market share in the weak market in the province this year. The market outside the province mainly focuses on the development and layout of the five provinces in Northwest China and East China. At present, Xi’an Sales Company has completed the organizational fission. In the year of establishment, the business department, energy business department and gold award business department plan to realize the layout of the whole region and county; With the help of the advantages of the company outside Qinghai Province, it is to accelerate the expansion of its own brand and model market; East China mainly relies on Fosun holdings to realize empowerment, and echoes the Northwest market by implementing the “one hundred people, one hundred businesses and one million” plan.
Strengthen consumer interaction and convey the positive energy of Golden Emblem. In terms of brand building, the company has increased its spending this year, focusing on the 28 year brand image advertisement of Golden Emblem at the airport, high-speed railway station and outdoor and other core points, so as to expand the brand influence; In terms of strengthening consumer interaction, the company plans to transform quality advantages into brand and production area advantages and enhance brand image by holding activities such as Golden Emblem tour, high-end tasting meeting and folk wine tasters. At the same time, the company also actively participates in social activities such as fighting the epidemic and public welfare scholarship, and takes practical actions to convey the brand spirit of ” Jinhui Liquor Co.Ltd(603919) positive energy”.
Investment advice and profit forecast. We estimate that the company’s revenue in 22-24 years will be 2.50/3.04/3.76 billion respectively (previously predicted revenue in 22-23 years will be 2.47/3.03 billion respectively), net profit attributable to parent company will be 4.8/6.2/7.8 billion respectively (previously predicted net profit attributable to parent company in 22-23 years will be 5.0/6.30 billion), and corresponding EPS will be 0.95/1.22/1.53 respectively (previously predicted EPS in 22-23 years will be 0.98/1.24). The 22 year average valuation of comparable companies is 28 times PE; The company is a leading Baijiu enterprise in Gansu Province. After Fosun became the owner, it continued to empower. At present, the product structure of the company has been upgraded rapidly, and the annual performance can be expected to increase; 35 times of PE in Jinhui Liquor Co.Ltd(603919) 22 years (40 times of PE in 2021 was given previously), and the target price was raised from 32 yuan to 33 yuan, maintaining the rating of “better than the big market”.
Risk tip: covid-19 epidemic situation is repeated, market competition intensifies, and food safety problems.
