\u3000\u3 Shengda Resources Co.Ltd(000603) 076 Ningbo Lehui International Engineering Equipment Co.Ltd(603076) )
Events
According to the news on May 17, the company’s 30 km official account of fresh beer. The company’s own brand – “fresh beer 30km” x maizhen joint brand officially landed in Metro club.
Key investment points
The company has made another major breakthrough in the large-scale channel of Metro super fresh beer
Together with Metro, the company launched “30 km fresh beer x wheat selection” – German wheat fresh beer has officially landed in Metro’s member store. On May 17, Metro Beijing Haidian Sijiqing membership store was put into trial operation. The joint brand German wheat will be launched in the store, and the subsequent e-commerce channels will be launched one after another. The official entry into Metro is the second major channel breakthrough of the company in the national large-scale commercial supermarket system after HEMA. In addition, the product terminals of this cooperation are displayed in the form of joint names, highlighting the company’s own brand – fresh beer 30km, which is of great strategic significance.
We believe that the successful joint signing of Metro shows the product positioning of the company’s “fresh beer + refined beer”, which is effectively separated from the main refined and cooked beer and traditional industrial beer brands, and has been fully recognized by the large chain terminal channels. In the future, the “refined beer + Fresh beer” model is expected to become an important segment of the beer market. It is expected that the company’s own brand, in addition to continuing to spread in all stores across the country within metro system, is also expected to enter other national large-scale supermarket systems and become an important brand in the field of fresh beer segmentation.
The operation expansion of independent brands has accelerated, and we are optimistic about the progress of channels and the significant increase of fresh beer sales after the epidemic is alleviated
We believe that the company’s channel progress, production capacity investment and remote expansion have accelerated, and the fresh beer business has achieved a great breakthrough. We are optimistic about the progress of channels and the expected improvement of fresh beer sales after the epidemic is alleviated.
B-END Catering: the company’s own brand has entered the catering chain system such as Fengmao kebab and buerjun Sichuan cuisine. It is expected to enter the Haidilao system in May, and the follow-up is expected to exceed the expected breakthrough. Large supermarket chains: the company’s own brand has officially entered the metro system. The restricted products cooperated with HEMA have become the top 1 in the new wine list of HEMA system.
E-commerce channels: the products have been officially sold in Tiktok, jd.com, tmall.com and wechat mall. The live broadcast of Tiktok has been officially launched. Recently, it has begun to launch for the koc/ people with goods. It is expected that various forms of online publicity and promotion will be increased in the future. Business form of C-end tavern / liquor station: it has successfully entered the mode replication stage in the early stage, and the process of opening stores in different places has been started. It is expected that after the epidemic situation is alleviated, the preliminary reserve project will enter the accelerated introduction period. Direct selling / dealer network: the direct selling / dealer network is accelerating, and the sales are expected to exceed expectations after the epidemic is alleviated.
Profit forecast and valuation
The company’s profitability declined in 2021 due to raw material prices, rising shipping, contract disputes, refined brewing business development and other reasons. It is expected that the profitability will be significantly improved in 2022. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 140 / 2.2 / 390 million yuan respectively, with a growth rate of 201% / 57% / 77%, corresponding to 24 / 15 / 9 times of PE, maintaining the “buy” rating.
Risk warning: the epidemic situation affects the demand; The sales of fresh beer and fine brewed beer projects of independent brands were less than expected
