\u3000\u3 Shengda Resources Co.Ltd(000603) 198 Anhui Yingjia Distillery Co.Ltd(603198) )
Events Anhui Yingjia Distillery Co.Ltd(603198) released the annual report of 21 years and the quarterly report of 22 years. In 21 years, the company achieved a revenue of 4.58 billion yuan, a year-on-year increase of 32.6%; The net profit attributable to the parent company was 1.38 billion yuan, a year-on-year increase of 45.0%; Net profit deducted from non parent company was 1.29 billion yuan, with a year-on-year increase of 45.8%. In the first quarter of 2001, the revenue was 1.58 billion yuan, a year-on-year increase of 37.2%; The net profit attributable to the parent company was 550 million yuan, a year-on-year increase of 49.0%; Net profit deducted from non parent company was 540 million yuan, with a year-on-year increase of 50.4%.
Dongcang has the potential to promote product upgrading and channel deep cultivation to seize the share in the province. In 21 years, the revenue of medium and high-grade Baijiu and ordinary Baijiu reached RMB 3.08/1.23 billion respectively, with a year-on-year increase of 44.7%/10.7%. The overall gross profit margin increased by 0.4pct to 67.5%, mainly due to the release of potential energy of Dongzang series, which led to an increase of 5.8pct to 71.5% in the proportion of middle and high-end Baijiu revenue. In the first quarter of the year, the revenue of medium and high-grade Baijiu reached 1.24 billion yuan, an increase of 56% year-on-year. The revenue of ordinary Baijiu was 270Million yuan, a decrease of 6.9% year-on-year. The gross profit margin increased by 1.7pct to 71.4% year-on-year, mainly due to the replenishment of Baijiu consumption during the Spring Festival, the active sales of Dongzang terminal and the continuous optimization of product structure. In the 21st year, the revenue in the province increased by 1.7pct to 63.5% compared with that in the 20th year. Under the operation mode of small business in-depth distribution, the company formed a thrust with higher channel profits and actively cultivated the market in the province. In the 22nd year, the revenue inside / outside the province was 1.04/460 billion yuan respectively, with a year-on-year increase of 44% and 31%, and the proportion in the province increased to 69.4%.
Optimize the cost structure and improve the performance flexibility. In the 21st year, the company’s sales expense ratio decreased by 2.4pct to 9.7% and the management expense ratio decreased by 0.7pct to 4.3% compared with the same period last year, which was mainly due to the contraction of expense ratio and the year-on-year increase of net profit by 2.6pct to 30.2% due to the upgrading of product structure and scale effect. In the first quarter of 2012, the sales expense and management expense were 12.25 billion yuan / 4.91 billion yuan respectively, with a year-on-year increase of 28.9% / 6.7%, the sales expense rate and management expense rate were 7.8% / 3.1% respectively, and the net interest rate increased by 2.8pct to 35.1% compared with the same period last year. The profitability continued to be released.
Adhere to the differentiated competition of ecological brewing, and the potential energy of Dongzang is expected to be released continuously. On the brand side, the company adheres to the six ecological systems of ecological production area, ecological water cutting, ecological brewing art, ecological circulation, ecological cave storage and ecological consumption, forms differentiated competition with the focus year series of competitive products in the province, and builds a “leading brand of Chinese ecological Baijiu”. On the product side, Dongzang series dong6 and dong9, as the main single products, focus on the 100 + and 200 + price bands and the sinking market. When the competitiveness of competitive products in the province is weakened due to the impact of the life cycle, they gradually turn their attention to products with a price band of more than 300 yuan, forming misplaced competition and rapid volume. At the same time, the company is also further strengthening its brand influence, seizing the opportunity of this high-end price belt through Dongzang 16 and Dongzang 20, and leading the overall improvement of Dongzang series.
Investment advice and profit forecast. We estimate that the company’s revenue in 22-24 years will be 5.78/7.03/8.49 billion respectively (previously predicted revenue in 22-23 years will be 5.0/5.94 billion respectively), net profit attributable to parent company will be 1.81/22.8/2.85 billion respectively (previously predicted net profit attributable to parent company in 22-23 years will be 1.52/1.83 billion), corresponding EPS will be 2.26/2.85/3.56 respectively (previously predicted EPS in 22-23 years will be 1.90/2.29). The average valuation of comparable companies in 22 years was 27 times PE, and 35 times PE was given for Anhui Yingjia Distillery Co.Ltd(603198) 22 years (unchanged). The target price was raised from 56 yuan to 79 yuan, maintaining the rating of “better than the market”.
Risk tip: covid-19 epidemic situation is repeated, market competition intensifies, and food safety problems
