Tsingtao Brewery Company Limited(600600) (600600. SH) released the announcement of performance increase in 2021 on January 14. It is expected that the net profit attributable to the shareholders of the listed company will be about RMB 3.15 billion, an increase of about RMB 948 million compared with the same period of last year, a year-on-year increase of about 43%.
Red Star capital Bureau noted that the net profit of Tsingtao Brewery Company Limited(600600) in the first three quarters of 2021 was 3.611 billion yuan, and the loss in the fourth quarter (Q4) was about 461 million yuan after simple calculation. If the net profit increased by “land sale” at the end of the year is nearly 500 million yuan, it means that the actual loss of Tsingtao Brewery Company Limited(600600) Q4 deducting non net profit is about 1 billion yuan.
the performance looks good, but in fact, the loss in the fourth quarter was serious
Although Tsingtao Brewery Company Limited(600600) has not announced the operating revenue for the whole year of 2021, the revenue in the first three quarters is close to the whole year of 2020, and there is no suspense of a new high. The company expects to achieve a large increase in net profit attributable to shareholders of Listed Companies in 2021, but the net profit after deducting non recurring profits and losses is about RMB 2.194 billion, an increase of about RMB 379 million compared with the same period of last year, a year-on-year increase of about 21%
Tsingtao Brewery Company Limited(600600) performance pre increase announcement
Tsingtao Brewery Company Limited(600600) said that in 2021, under the leadership of the board of directors, the company will continue to unswervingly promote the implementation of high-quality development strategy, and pay attention to epidemic prevention and control and business development. The company gave full play to the brand and quality advantages of Tsingtao Brewery Company Limited(600600) , actively explored foreign markets, accelerated the upgrading of product structure, actively increased revenue and expenditure, reduced cost and increased efficiency, and realized the sustainable growth of operating profit.
However, the performance of Tsingtao Brewery Company Limited(600600) is only superficial. According to the composition of the dismantling performance of Red Star capital Bureau, the main reasons for the significant increase of its performance include: first, the profit of the company’s main business in 2021 increased by about 379 million yuan compared with the same period of last year; second, the non recurring profits and losses of government land acquisition and storage will increase the net profit by nearly 500 million yuan. This means that in the profit increment of Tsingtao Brewery Company Limited(600600) , relying on “land sale” brings more contribution.
Affected by the winter climate, beer sales decreased significantly, and Tsingtao Brewery Company Limited(600600) basically lost money in the fourth quarter. The net profit of Q4 in 2021 will be a loss of about RMB 461 million, but if the non recurring profit and loss of “land sale” is deducted, the loss will be expanded to about RMB 1 billion
“land sale” made a great contribution, and Tsingtao Beer real estate took over
Tsingtao Brewery Company Limited(600600) “non recurring profits and losses” account for the majority of the profit increment, mainly from the government’s collection and storage of land. According to the historical announcement of Tsingtao Brewery Company Limited(600600) , the company convened the board of directors on July 12, 2021, reviewed and approved the feasibility report on government collection and storage of the company’s yangjiaqun freight yard land, and agreed to the government’s collection and storage of the company’s yangjiaqun freight yard land.
It was announced on Tsingtao Brewery Company Limited(600600) December 17, 2021 that the final auction transfer price of plots including yangjiaqun freight yard land was 1.422 billion yuan (the company’s collection and storage area accounted for 86.9%). According to the calculation of the company, after deducting the land consolidation fees, other taxes and related expenses, it is expected that the net profit attributable to the shareholders of the parent company will be increased by about 400-500 million yuan after the income of the target land expropriation compensation is recognized.
Huajin securities research report pointed out that the performance of Tsingtao Brewery Company Limited(600600) Q4 is under pressure in the off-season and epidemic situation, and the profit of land compensation is thickened. If the impact of land compensation is deducted, it is expected that the net profit not attributable to the parent company will be deducted from Q4 by -1.02 billion yuan, a year-on-year decrease of about 18.4%. Q4 under the repeated influence of the epidemic situation, the company’s sales volume is under pressure in the short term, and the pressure of rising raw material prices gradually appears. In addition, as the main sponsor of the Beijing Winter Olympic Games, the company increased the investment of brand advertising expenses, and the superposition of multiple factors led to the operating profit slightly lower than expected.
It is worth mentioning that after the auction, the land will be won by Tsing beer real estate and Beicheng City, and a beer town project will be built. Tsingtao Beer real estate is subordinate to Tsingtao Brewery Company Limited(600600) group and is mainly responsible for real estate business. In fact, in addition to the main business of beer, real estate is also one of the pillar industries of Tsingtao Brewery Company Limited(600600) group. Tsing beer real estate has development projects in Qingdao and some cities in Shandong Province
1399 / bottle, the sky high price beer is close to Maotai, causing controversy
Tsingtao Brewery Company Limited(600600) there is another news recently, that is, the introduction of super high-end beer “Legend of the first world”, with an alarming price: the price is as high as 1399 yuan / bottle, close to Feitian Maotai
Tsingtao Brewery Company Limited(600600) the ultra-high end price is close to Maotai
In 2021, the company launched the “100 year tour” of high-end beer. Now it is introducing more high-end products. It refreshes the beer awareness of all walks of life, and also lets consumers make complaints about it. Who else dare to shout “a dozen beers”?
According to the official introduction of Tsingtao Brewery Company Limited(600600) , this beer uses valuable century old yeast, returns to the ancient process of “two-stage low-temperature slow ripening”, integrates the classic whisky barrel brewing method of North American brewers and the hoarding method of European classical wine, and extends the fermentation time of beer by three times to 100 days. At the same time, the original wort concentration was 23.9p, the alcohol degree was more than 10.5% vol, the capacity was 1.5L, and the taste period was three years. In short, it is full of Tsingtao Brewery Company Limited(600600) “tireless pursuit of high quality”.
So, does anyone drink such high priced beer? Red Star capital Bureau found from an e-commerce platform that this beer is still purchased by consumers. As a new product just launched, it has sold hundreds of bottles in total. However, from its consumer messages, most of them are out of a strange and early taste psychology.
Not only Tsingtao Brewery Company Limited(600600) , other beers have also launched high-priced beers. In May 2021, China Resources beer (00291. HK) launched two bottles of “Li” boxes, each with a capacity of 999ml and a price of 999 yuan. The price of a single bottle is 499 yuan, but not a single bottle. Budweiser beer also launched the “Budweiser master Legend Limited Edition of the year of the tiger” when the year of the tiger is coming, with a price of 1588 yuan / bottle, which has exceeded the guidance price of Feitian Maotai.
For the sky high price beer emerging in the market, Cai Xuefei, a liquor analyst, believes that with the high-end upgrading of the beer industry, Tsingtao Brewery Company Limited(600600) is also complying with the development trend of the industry. however, the symbolic significance of thousands of yuan of beer is greater than the practical significance, because such a high price band has no market demand, but more just the demand of brand marketing. and because of the technological problems, beer can’t be stored as long as baijiu.
According to the Research Report of Everbright Securities Company Limited(601788) , since 2021, Tsingtao Brewery Company Limited(600600) has successively promoted a number of new products, and now it has launched a legend of super high-end new products, subverting the traditional beer consumption concept with high malt concentration, high alcohol concentration and long storage time. Its positioning of the thousand yuan price band breaks the ceiling of the current Chinese beer price band and adds chips for Tsingtao Brewery Company Limited(600600) to enter the high-end field when consumers pursue quality.
