\u3000\u30 China High-Speed Railway Technology Co.Ltd(000008) 58 Wuliangye Yibin Co.Ltd(000858) )
Annual report of the company in 2021 and 2022. According to the announcement, the company achieved a total operating revenue of 66.209 billion yuan in 2021, a year-on-year increase of 15.51%; The net profit attributable to the parent company was 23.377 billion yuan, a year-on-year increase of 17.15%. In the first quarter of 2022, the total operating revenue was 27.548 billion yuan, a year-on-year increase of 13.25%; The net profit attributable to the parent company was 10.823 billion yuan, a year-on-year increase of 16.08%.
Comments:
The company ended steadily in 2021 and achieved a benign growth in 2022q1. In 2021, the company achieved a total operating revenue of 66.209 billion yuan, a year-on-year increase of 15.51%; The net profit attributable to the parent company was 23.377 billion yuan, a year-on-year increase of 17.15%. In a single quarter, Q4 achieved an operating revenue of 16.488 billion yuan, a year-on-year increase of 11.19%; The net profit attributable to the parent company was 6.05 billion yuan, a year-on-year increase of 11.84%. Compared with the third quarter of 2021, the company’s revenue in the fourth quarter accelerated month on month. During the Spring Festival in 2022, the company’s core product badaipu five dynamic sales performed well, the overall shipment is expected to increase by more than 30% year-on-year, and the channel inventory is maintained at a benign level. Meanwhile, the shipment speed of classic Wuliangye Yibin Co.Ltd(000858) is also relatively fast, and the company’s 2022q1 performance has achieved benign growth. In the first quarter of 2022, the company achieved a total operating revenue of 27.548 billion yuan, a year-on-year increase of 13.25%; The net profit attributable to the parent company was 10.823 billion yuan, a year-on-year increase of 16.08%.
The price of core products will rise steadily in 2021, and the system of series liquor products will be optimized. Combined with its actual situation, the company raised the purchase price of puwu dealers in November 2021, with a comprehensive cost of 969 yuan / bottle, benchmarking Feitian Maotai. At the same time of the price increase, the volume of the eighth generation and the fifth generation also increased, and the terminal dynamic sales reached a new high, pushing the company’s performance further upward. In addition, the company continued to optimize the product structure, and successfully introduced the super high-end classic Wuliangye Yibin Co.Ltd(000858) in the market in 2021. The product structure continued to optimize, and the classic Wuliangye Yibin Co.Ltd(000858) is expected to become another core product besides the general five-year plan at the end of the 14th Five-Year plan. While strengthening the Wuliangye Yibin Co.Ltd(000858) main brand, the company continued to promote the brand upgrading of a series of wine products. In 2021, the company successfully launched new versions of wuliangchun, Jianzhuang 1911 and other products, cleared and returned 7 general distribution brands and 509 products, and the product system was optimized. According to the specific data, the company’s Wuliangye Yibin Co.Ltd(000858) products achieved an operating revenue of 49.112 billion yuan in 2021, with a year-on-year increase of 11.46%; The operating revenue of series liquor was 12.62 billion yuan, a year-on-year increase of 50.71%.
The profitability of 2022q1 has improved. In 2022q1, the company’s gross profit margin was 78.41%, with a year-on-year increase of 1.98 percentage points, mainly due to the improvement of payment price and the optimization and upgrading of product structure. In terms of expense ratio, the company’s sales expense ratio in the first quarter of 2022q1 was 7.38%, an increase of 0.29 percentage points year-on-year; The rate of administrative expenses was 3.76%, a year-on-year decrease of 0.31 percentage points; The financial expense rate was – 1.86%, with a year-on-year increase of 0.01 percentage points. Combined with the gross profit margin and expense rate, the net profit margin of 2022q1 was 41.28%, an increase of 1.06 percentage points year-on-year, and the profitability was improved.
Maintain recommended ratings. It is estimated that the company’s EPS from 2022 to 2023 will be 7.14 yuan and 8.35 yuan respectively, and the corresponding PE will be 23 times and 20 times respectively. 2021 is the first year of the 14th five year plan of the company, with steady performance and a successful start in 2022. As the leader of the high-end Luzhou flavor Baijiu industry, the company has made steady progress in capacity expansion and product upgrading, and there is room for further improvement in product volume and price. Maintain the “recommended” rating of the company.
Risk warning. The dynamic sales of core products are less than expected, the channel expansion is less than expected, the macroeconomic downside risk and food safety risk.
