\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 132 Chongqing Brewery Co.Ltd(600132) )
Event: the company announced the first quarterly report of 2022. In 2022q1, the company realized an operating revenue of 3.833 billion yuan, a year-on-year increase of 17.12%, a net profit attributable to the parent of 341 million yuan, a year-on-year increase of 15.33%, deducting a net profit not attributable to the parent of 335 million yuan, a year-on-year increase of 15.47%.
Key investment points
The growth rate of high-end products leads, and the product structure is significantly optimized. 22q1 company achieved 794200 kiloliters of beer sales, a year-on-year increase of + 11.7%; The price per ton was 4735 yuan / kiloliter, a year-on-year increase of + 4.65%, realizing the simultaneous rise of volume and price. In terms of products, the revenue of high-end / mainstream / economic products was 1.374/19.91/395 billion yuan respectively, with a year-on-year increase of + 24.04% / + 13.17% / + 12.84%, both of which achieved double-digit growth, of which the revenue of high-end products accounted for + 2.11pct, up to 36.55%. In terms of sub regions, 2022q1 company achieved revenue of RMB 1.196/1.661904 billion in Northwest / central / southern regions respectively, with a year-on-year increase of + 13.96% / + 20.68% / + 14.13%. The plan of big cities was promoted smoothly, and good growth was achieved in all regions of the country.
The management expense ratio has been continuously optimized and high-end hedged against cost pressure. The gross profit margin of 22q1 company was 47.68%, with a year-on-year increase of -0.18pct. When the prices of raw materials and packaging materials were rising, the company ensured the relative stability of the gross profit margin by locking the price of materials and optimizing the product structure. In terms of rates, during the reporting period, the company’s sales expense rate / administrative expense rate / financial expense rate were 13.71% / 3.40% / – 0.19% respectively, with a year-on-year increase of + 0.61 / – 0.79 / – 0.30pct respectively. The increase of sales expense was mainly due to the implementation and expansion of big cities, and the administrative expense rate and financial expense rate maintained a stable improvement trend, contributing to the rapid growth of net profit.
Wusu maintained rapid growth and expanded its categories to open the national market. 22q1 Wusu has achieved double-digit growth both in the province and outside Xinjiang. A series of new products Loulan secret brew, white beer and black beer have achieved good response. Driven by the flow of hongwusu and the plan of big cities, Chongqing Brewery Co.Ltd(600132) all series of products have achieved good growth. We believe that at present, Wusu Beer product matrix tends to be improved, and the nationalization process is progressing smoothly. Wusu still has large growth space, which will drive the steady progress of Chongqing Brewery Co.Ltd(600132) high-end with 1664.
Investment suggestion: the upgrading of the company’s product structure is progressing smoothly, the national sales network is gradually opened, and the development space of its Wusu brand is sufficient. We are optimistic about the company’s development in the transition period of the beer industry and maintain the previous profit forecast: the company’s operating revenue from 2022 to 2024 will be 15.562/17.982/20.578 billion yuan respectively, with a year-on-year increase of 18.6% / 15.5% / 14.4%. The net profit attributable to the parent company was 1.471/1.905/2.242 billion yuan, with a year-on-year increase of 26.1% / 29.5% / 17.7%. The corresponding EPS is 3.04/3.94/4.63 yuan respectively. Considering the high growth of the company’s products under the background of high-end and nationalization, maintain the “buy-b” rating.
Risk tips: product upgrading is less than expected, industry competition intensifies, raw material prices rise more than expected, etc
