\u3000\u3 Shengda Resources Co.Ltd(000603) 369 Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) )
The company released the first quarterly report of 2022. In the first quarter of 2022, the company achieved an operating revenue of 2.99 billion yuan, an increase of about 24.7% at the same time; The net profit attributable to the parent company was 1 billion yuan, a year-on-year increase of 24.5%; The gross profit margin was 74.30%, with an increase of 1.04pct. The upward product structure led to a steady increase in the gross profit margin; The sales / management expense ratio increased by 1.21/decreased by 0.11pct respectively; The sales collection was 2.56 billion yuan, an increase of 20.95% at the same time, and the balance of contract liabilities was 1.14 billion yuan, a decrease of 930 million yuan compared with the end of 2021.
The product structure has been steadily improved, and the rapid growth continues in the province. In terms of product structure, in the first quarter of 2022, the revenue of special a + products was 1.94 billion yuan, yoy + 25.6%, accounting for 65.2%, with a simultaneous increase of 0.4pct. The revenue of special a + products was 830 million yuan, yoy + 30.4%, and the product structure improved steadily. We expect that the company will continue the trend of structural upgrading in 2022, and the V series and Sikai products above the secondary high end will maintain rapid growth; In terms of regional expansion, the revenue of Jiangsu Province increased by 25.8% in the first quarter of 2022, of which the revenue of Huai’an / Nanjing / Yancheng / Southern Jiangsu / Central Jiangsu / Huaihai increased by 18% / 27% / 13% / 28% / 36% / 39% respectively. The Nanjing Highland market achieved rapid growth, the strategic markets of Southern Jiangsu and central Jiangsu maintained good growth, and there is still much room for subsidence in the north and permeability improvement in the south of the province; In the first quarter, the revenue outside the province increased by 10.6%, accounting for 6.5%, and decreased by 0.8pct, and the pace of development outside the province was relatively stable; In the first quarter, there was a net increase of 6 dealers in the province and a net decrease of 46 dealers outside the province. We expect that the company will still take Southern Jiangsu and central Jiangsu as the main incremental markets in the province in 2022.
In 2022, the “four campaigns” will be deepened around the policy of 13455. According to the disclosure of Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) 2022 development conference, the company defines 13445 marketing policy in 2022: 1. It refers to focusing on quality and concentrating on new leaps. 3 refers to the three modernizations strategy, highlighting differentiation, building core competitiveness, striving for high-end, seizing new competitive tracks, speeding up full flower, and fighting a breakthrough war outside the province. 4 refers to industry confidence, brand confidence, quality confidence and development confidence. 4 refers to deepening the “four battles”: 1) unswervingly, strive to improve the potential energy of V9 brand, promote supremacy, sell business, and have V9 first and then V series; 2) Improve quality and expand coverage, continue to strengthen the basic market of opening system, enlarge the popularity of brand reputation, improve the control and profit sharing system, and continue to promote regional intensive cultivation; 3) Highlight the characteristics and strengthen the effectiveness of Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) brand activation; 4) Take multiple measures at the same time to accelerate the market breakthrough of sectors outside the province, coordinate the layout of dual brands, build diversified sectors, and cultivate innovative new consumption. 5 refers to strengthening the five guarantees, upgrading the marketing organization (strengthening V9 business unit, establishing Guoyuan Jiangsu King’S Luck Brewery Joint-Stock Co.Ltd(603369) business unit and Gaogou sales company), increasing market investment, deepening process reform, implementing the business excellence plan and improving the incentive mechanism. We believe that the 13455 marketing policy will help the company strengthen the “brand + channel” two wheel drive strategy and achieve high-quality development.
Investment suggestion: the company has successfully achieved a “good start” in 2022. The proportion of special a + products has increased and the product structure has continued to improve. It is estimated that the company’s revenue from 2022 to 2024 will be 7.9/98/11.7 billion yuan respectively, and the net profit attributable to the parent company will be 2.52/31.6/3.89 billion yuan respectively. The corresponding P / E of the current stock price is 22 / 18 / 15x respectively, maintaining the “recommended” rating.
Risk tips: 1) economic fluctuations exceed expectations, affect high-end demand and squeeze V-series and other growth space; 2) The intensified competition in the province has caused the dynamic sales of leading products to be less than expected and the price is unbalanced; 3) The impact of the epidemic exceeded expectations.
