\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 132 Chongqing Brewery Co.Ltd(600132) )
Event: the company released the first quarterly report of 2022 and realized an operating revenue of 3.833 billion yuan in 2022q1, a year-on-year increase of + 17.12%; The net profit attributable to the parent company was 341 million yuan, a year-on-year increase of + 15.33%; Deduct the net profit not attributable to the parent company of RMB 335 million, a year-on-year increase of + 15.47%.
The performance of high-end products is outstanding, and the process of nationalization is advancing rapidly. The company’s beer sales increased steadily, with 794200 kiloliters of beer sales in 2022 Q1, a year-on-year increase of + 11.70%. By product, the revenue of the company’s high-end products increased rapidly. In the first quarter, 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%. By region, the company has re divided the sales area since January 1, 2022. The new sales zoning system is conducive to the promotion of products and the improvement of organizational efficiency. In 2022q1, the Northwest / middle / South regions of the company achieved revenue of 1.196/1.661904 billion yuan respectively, with a year-on-year increase of 13.96% / 20.68% / 14.13%. The company has achieved double-digit income growth in all districts, and the expansion process of the national market has been promoted rapidly.
Increase the investment in sales expenses, put pressure on the cost side and slightly reduce the profit margin. On the expense side, Q1 company increased the investment in sales expenses in 2022 to boost revenue, and continued to promote the optimization of organizational efficiency in terms of management expenses to save expenses. In the first quarter, the sales expenses / management expenses were + 22.55% / – 4.89% year-on-year, and the sales expenses / management expenses ratio was + 0.61 / – 0.79pct year-on-year. On the cost side, in 2022, Q1 international conflict and Chinese epidemic repeatedly pushed up the price of raw materials, and the operating cost of the company in the first quarter was + 17.52% year-on-year. The cost pressure has a certain impact on the profitability of the company. In 2022, the net interest rate attributable to the parent company of Q1 company was 8.89%, with a year-on-year increase of -0.14pct.
Streamline the number of dealers and improve the efficiency of wholesale agency channels. 2022q1 company added 296 dealers and reduced 712 dealers. At the end of the first quarter, there were 3096 dealers, 416 less than that at the end of 2021. With the decrease in the number of dealers, the company’s wholesale agency channel revenue in the first quarter still achieved double-digit growth, and the efficiency of wholesale agency channels was improved. In 2022q1, the direct selling / wholesale agency revenue was 14 / 3.746 billion yuan, a year-on-year increase of – 15.55% / + 17.05%.
Investment suggestion: the company’s current production network has increased from 14 wineries in three provinces to 26 wineries in nine provinces. Its core market has expanded from Chongqing, Sichuan and Hunan to Xinjiang, Ningxia, Yunnan, Guangdong and East China. Relying on the perfect production network system and the new sales zoning system, the company is expected to accelerate the national layout and promote the opening of national space for products in the future. Continue to maintain the buy-b rating. It is estimated that the company’s earnings per share from 2022 to 2024 will be 2.75/3.56/4.08 yuan, and the six-month target price will be 137.67 yuan, equivalent to 50x P / E ratio in 2022.
Risk tip: the high-end process is not as expected; The impact of the epidemic exceeded expectations; Competition in the high-end beer industry has intensified.
