\u3000\u30 Shenzhen Fountain Corporation(000005) 68 Luzhou Laojiao Co.Ltd(000568) )
Annual report of the company in 2021 and 2022. According to the announcement, the company achieved a total operating revenue of 20.642 billion yuan in 2021, a year-on-year increase of 23.96%; The net profit attributable to the parent company was 7.956 billion yuan, a year-on-year increase of 32.47%. In the first quarter of 2022, the total operating revenue was 6.312 billion yuan, a year-on-year increase of 26.15%; The net profit attributable to the parent company was 2.876 billion yuan, a year-on-year increase of 32.72%.
Comments:
The company ended successfully in 2021, with excellent performance in 2022q1. In 2021, the company achieved a total operating revenue of 20.642 billion yuan, a year-on-year increase of 23.96%; The net profit attributable to the parent company was 7.956 billion yuan, with a year-on-year increase of 32.47%, and the annual performance achieved benign growth. In a single quarter, the company’s Q4 performance accelerated month on month. In 2021q4, the company achieved an operating revenue of 6.532 billion yuan, a year-on-year increase of 29.26%; The net profit attributable to the parent company was 1.68 billion yuan, a year-on-year increase of 41.14%. In the first quarter of 2022, the company’s core product Guojiao 1573 had good dynamic sales, the dealers had high enthusiasm for payment, and the channel inventory remained at a benign level of about one month. At the same time, the company has completed about 40% of the annual payment collection before the 1952 national cellar Festival, and the company has made a good start in 2022. In the first quarter of 2022, the company achieved a total operating revenue of 6.312 billion yuan, a year-on-year increase of 26.15%; The net profit attributable to the parent company was 2.876 billion yuan, a year-on-year increase of 32.72%.
The company’s product structure continued to be optimized and upgraded, and the proportion of medium and high-end products increased. At present, the company focuses on the dual brand strategy of Guojiao and Laojiao, and is committed to the optimization and upgrading of product structure. The proportion of medium and high-grade wines such as Guojiao 1573 and Tequ has increased. In 2021, the company’s medium and high-end products achieved an operating revenue of 18.397 billion yuan, a year-on-year increase of 29.22%, a year-on-year increase of 25.42% and an increase in the proportion of revenue to 89.12%; Other alcoholic drinks achieved an operating income of 2.018 billion yuan, a year-on-year decrease of 8.74%. On the basis of consolidating the original categories, the company continues to enrich the product matrix and continuously optimize the product structure. On October 17, 2021, the company launched a new strategic product ” Luzhou Laojiao Co.Ltd(000568) 1952″, priced at 899 yuan / bottle, injecting new vitality into the company’s performance growth.
Fine management has achieved certain results, and the profitability has been steadily improved. Benefiting from the optimization and upgrading of product structure and the increase in the proportion of medium and high-end products, the company’s gross profit margin increased steadily. In 2021, the company’s gross profit margin was 85.70%, with a year-on-year increase of 2.65 percentage points, and the gross profit margin in the fourth quarter increased by 2.56 percentage points year-on-year; The gross profit margin of 2022q1 company was 86.43%, with a year-on-year increase of 0.39 percentage points. Since 2021, the company has thoroughly implemented the development policy of “fine management to increase benefits and precision marketing to expand the market”, promoted the benign growth of business scale and profitability, further reduced the cost rate, and achieved certain results in fine management. In 2021 and 2022q1, the company’s period expense rate was 22.17% and 14.67% respectively, with a year-on-year decrease of 1.18 and 1.91 percentage points respectively. Under the combined effect of the increase of gross profit margin and the decrease of expense rate, the net profit margin of the company in 2021 and 2022q1 were 38.45% and 45.81% respectively, with a year-on-year increase of 2.67 and 2.25 percentage points respectively, and the profitability rose again.
Maintain recommended ratings. It is estimated that the company’s EPS from 2022 to 2023 will be 6.77 yuan and 8.45 yuan respectively, and the corresponding PE will be 32 times and 25 times respectively. In December 2020, the company put forward the “new 10 billion” goal of Guojiao 1573, and strive to make the sales revenue of Guojiao 1573 exceed 20 billion yuan and 30 billion yuan in 2022 and 2025 respectively. The company disclosed in its annual report that it will strive to achieve a year-on-year growth of operating revenue of no less than 15% in 2022. With the continuous optimization of product structure and the gradual refinement of management, it is expected that the potential energy of the company’s products will be further released. With the smooth implementation of the superimposed restricted stock incentive plan, the company’s performance is expected to thicken. Maintain the “recommended” rating of the company.
Risk warning. Product promotion is less than expected, channel expansion is less than expected, industry competition intensifies, and food safety problems.
