\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 809 Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) )
Event: the company released the annual report of 2021 and the report of the first quarter of 2022. According to the announcement, the company achieved a total operating revenue of 19.971 billion yuan in 2021, a year-on-year increase of 42.75%; The net profit attributable to the parent company was 5.314 billion yuan, a year-on-year increase of 72.56%. In the first quarter of 2022, the total operating revenue was 10.53 billion yuan, a year-on-year increase of 43.62%; The net profit attributable to the parent company was 3.71 billion yuan, a year-on-year increase of 70.03%.
Comments:
The company ended successfully in 2021, and the performance of 2022q1 exceeded expectations. In 2021, the company achieved a total operating revenue of 19.971 billion yuan, a year-on-year increase of 42.75%; The net profit attributable to the parent company was 5.314 billion yuan, with a year-on-year increase of 72.56%. It ended smoothly in 2021. In a single quarter, 2021q4 achieved a total operating revenue of 2.714 billion yuan, a year-on-year decrease of 24.79%; The net profit attributable to the parent company was 435 million yuan, a year-on-year decrease of 24.90%. Considering that the company actively controlled the delivery rhythm in the fourth quarter of 2021 and based on the high base in the fourth quarter of 2020, the growth rate of the company’s 2021q4 performance slowed down year-on-year. During the Spring Festival in 2022, dealers have a high enthusiasm for payment, the channel inventory of the company’s core products is at a relatively low level, Qinghua, laobaifen and other products perform well, and the performance of 2022q1 exceeds expectations. In the first quarter of 2022, the company achieved a total operating revenue of 10.53 billion yuan, a year-on-year increase of 43.62%; The net profit attributable to shareholders of listed companies was 3.710 billion yuan, a year-on-year increase of 70.03%. The company disclosed in its annual report that it will strive to increase its operating revenue by about 25% year-on-year in 2022, which has laid a solid foundation for the annual performance.
Blue and white led the growth of performance, and the market outside the province continued to expand. By category, the company adheres to the product strategy of “grasping blue and white, strengthening waist and stabilizing glass Fen” in the development process, implements blue and white glass Fen two wheel drive, the company’s blue and white Fen Liquor series and other medium and high-end products have achieved rapid growth, and the blue and white brand is likely to continue the upward trend. In 2021, the company’s Fen Liquor, series liquor and prepared liquor achieved operating revenue of 17.92 billion yuan, 638 million yuan and 1.25 billion yuan respectively, with a year-on-year increase of 41.90%, 12.73% and 91.39% respectively; The Fen Liquor, series liquor and prepared liquor of 2022q1 company achieved an operating revenue of 9.873 billion yuan, 260 million yuan and 347 million yuan respectively, with a year-on-year increase of 44.41%, 118.49% and 7.10% respectively. In terms of regions, the company continued to deepen the “1357 + 10” market layout and increased the expansion of markets outside the province on the basis of consolidating the market in the province. In 2021, the company achieved operating revenue of 8.070 billion yuan and 11.738 billion yuan respectively in the provincial market and the market outside the province, with a year-on-year increase of 34.60% and 49.48% respectively; In 2022q1, the company achieved operating revenue of RMB 3.854 billion and RMB 6.627 billion respectively in the provincial market and the market outside the province, with a year-on-year increase of 31.31% and 52.49% respectively.
The profitability of the company in 2022q1 increased year-on-year. In the first quarter of 2022, the company controlled the volume of Bofen, while the blue and white series products achieved rapid growth, driving the gross profit margin of the company in 2022q1 to increase by 1.21% year-on-year to 74.75%. In terms of expense rate, the sales expense rate, management expense rate and financial expense rate of 2022q1 company were 11.15%, 2.63% and – 0.07% respectively, with a year-on-year decrease of 6.8%, a decrease of 0.62% and an increase of 0.07% respectively. Based on the combination of gross profit rate and expense rate, the net profit rate of 2022q1 was 35.40%, with a year-on-year increase of 5.60%.
Maintain recommended ratings. It is estimated that the company’s EPS from 2022 to 2023 will be 6.39 yuan and 8.44 yuan respectively, and the corresponding PE will be 42 times and 32 times respectively. The company ended successfully in 2021 and made a successful start in 2022. As the leader of Baijiu, the company will continue the keynote of “Fen Liquor speed”, increase brand influence, and continuously optimize product and channel structure. Under the catalysis of multi-party reform, the company’s performance is expected to have large elastic growth space in the future, and high-quality growth is expected to continue in 2022. Maintain the “recommended” rating of the company.
Risk warning. Product promotion is less than expected, market expansion is less than expected, industry competition intensifies, macroeconomic problems and food safety problems.
