\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 197 Xinjiang Yilite Industry Co.Ltd(600197) )
The leading enterprise of Baijiu liquor, “the first liquor in Xinjiang” is well-known both inside and outside Xinjiang. As a class I class II enterprise of BINGTUAN with diversified development, the Xinjiang Yilite Industry Co.Ltd(600197) series Baijiu is carefully prepared from high-quality raw grains of Tianshan snow water and Ili River Valley, fermented in old cellars and aged for many years. It is well-known both inside and outside Xinjiang for its unique style of “long aroma, mellow taste, sweet taste, clear throat, harmonious taste and comprehensive wine taste”, and is known as “the first liquor in Xinjiang”.
The brand operation has achieved remarkable results and continuously improved the brand influence. In 2018, Xinjiang Yilite Industry Co.Ltd(600197) signed a strategic cooperation agreement with Beijing Shengchu marketing consulting company. In recent years, Xinjiang Yilite Industry Co.Ltd(600197) continuously carried out marketing activities, carried out high-frequency three-dimensional publicity in seven sets and nine sets of CCTV and other media, continued to strengthen cooperation in event broadcasting and special product development, deepened the cooperation mode with flying tiger men’s basketball team, and continuously improved brand awareness and influence.
The price increase action of gold plating time is completed, and high-end new products are continuously developed to complete the product chain. Yili Laojiao is the main product of the company and the first phenomenal single product to break through the scale of 1 billion. The company chose Yili old cellar as a breakthrough and began to upgrade and raise prices, which is conducive to the first shot in the upgrading of the overall product structure. After the gold-sectord time of Yili old cellar realized the action of price promotion, the company will focus on Yili Wang, a secondary high-end core product with a price of 400500 yuan, and further develop high-end new products with a price of Tian Jin Bohai Chemical Co.Ltd(600800) yuan, 1000 yuan and above, complete the product chain, seize the secondary high-end and high-end Baijiu market, and improve the sales profit margin.
Yiliwang liquor will recover its self operation and promote the nationwide layout by region. In 2021, the company decided to take back yiliwang liquor and change it to self operated mode. Since July 2021, yiliwang liquor began to attract investment everywhere and rebuilt the marketing system of yiliwang liquor. In the future, with the smooth promotion of yiliwang liquor, the sales channel of the company’s high-end liquor is expected to be further expanded and the revenue scale is expected to be improved. In addition, the company also plans to divide regions and promote national layout. The company has formulated specific development strategies for the region. In the future, it is necessary to implement the market promotion strategies of Zhejiang and Jiangsu, improve the product brand image and restore the growth of sales volume in Zhejiang, take the lead in achieving sales breakthroughs in Shaanxi and Guangdong, and drive the development of potential markets such as Henan and Gansu.
Investment suggestion: in the context of sustained and high-quality economic development in Xinjiang, Xinjiang Yilite Industry Co.Ltd(600197) continues to optimize and reform the company’s product structure, brand operation and channel mode. After the upgrading and upgrading of Yili old cellar products, Yili’s dynamic sales are good. In the future, with the recovery of Yili Wang’s self operation, Yili Wang’s potential is expected to be maximized. At the same time, the company actively develops high-end new products, attaches importance to brand operation, and technical transformation projects make up for the shortage of production capacity, The effect of market development outside Xinjiang can be expected in the future. Therefore, we estimate that the net profit attributable to the parent company from 2022 to 2024 will be RMB 4.4/5.3/620 million respectively, with a year-on-year increase of 40.47% / 21.57% / 16.60% respectively. We give Xinjiang Yilite Industry Co.Ltd(600197) 35x-45x relative PE valuation range. It is estimated that the total market value range in 2022 will be RMB 15.4-19.8 billion, corresponding to the stock price of RMB 32.56-41.86.
Risk tips: repeated epidemic risks, lower than expected price increase of product upgrading, lower than expected business expansion outside Xinjiang, etc
