Wuliangye (000858): Volume and price both rose and accelerated
Highlights of the report Event description Wuliangye disclosed the semi-annual report for 2019: operating income of 271 in the first half of 2019.
51 trillion, an increase of 26.
75%, net profit attributable to mother is 93.
3.6 billion, an increase of 31.
30%; of which 95% were operating income in the second quarter.
61 trillion, with an increase of 27.
08%, net profit attributable to mother 28.
61 trillion, with an increase of 33.
Event commentary continued to grow rapidly in the second quarter. The core benefited from the rise in volume and price of high-end brands.
In the first half of 2019, the company realized operating income of 271.
51 ppm, an increase of 26 in ten years.
75%, of which high-end wine revenue is expected to grow faster than the whole, the core benefited from the core product Wuliangye volume and price rose, but the series of wine has dragged down the overall growth, mainly due to the company’s number of series of wine brands, organizational structure,The personnel and other dimensions have been adjusted vigorously. For example, 42 brands and 129 high-imitation products that have severely overdrawn Wuliangye’s brand value have been returned and removed from the shelves, and the original series of wine sales companies have been “integrated into three”, andA new leadership team was formed. Zou Tao, the group’s vice chairman and executive deputy general manager of the joint-stock company, also served as the director and chairman of the merged series of liquor companies.
By quarter, 2019Q1 / Q2 revenue growth rate was 26.
57% / 27.
08%, single and second quarter continued to continue high-speed growth, achieving a slight acceleration.
The gross profit margin of alcoholic beverages reached a new high, and the company’s profitability is expected to continue to improve.
In the first half of 2019, the company’s gross profit margin increased by 0.
98 points to 73.
81%, of which the gross profit margin of alcoholic products reached 78.
16%, a new high.
In terms of taxes, the business tax and surcharges in the first half of 2019 decreased by 0.
08pct to 14.
05%, period expense ratio of 12.
01%, down by 1 every year.
11pct, in which the sales expense ratio, management expense (including research and development expenses) ratio, and financial expense ratio are changed by -0.
31 points, -0.
71 points, -0.
The gross profit margin increased and the supplementary expense ratio decreased. In the first half of 2019, the net profit attributable to mothers increased by 1.
19pct to 34.
38%, correspondingly the profit growth rate reached 31.
30%, faster than revenue growth.
It is expected that the gross profit margin due to the effect of price increase in the second half of the year is expected to continue to maintain an upward trend, while the expense ratio will remain stable. It is expected that the company’s net profit margin will continue to increase in the second half of the year.
The growth rate of cash flow was dazzling, and advance receipts declined due to the impact of the payment policy.
In the first half of 2019, the company’s net cash inflow from operating activities was 83.
66 trillion, mainly due to the increase in bank acceptance bills due and the increase in cash payments in the payment; the second quarter of 2019 advance receipts43.
5.4 billion, down 4 from the previous month.99 billion U.S. dollars, mainly related to the adjustment of the eight-generation general five payment policy to monthly payments.
The reform dividend is expected to continue to materialize as performance growth.
At present, the company is in a positive circulation channel with sufficient inventory and steadily rising prices. We expect EPS to be 4 in 2019/2020.
50 yuan, corresponding to the current sustainable PE is 32/26 times, maintain “Buy” rating.
Risk Warning: 1.
The effect of product upgrades and price increases did 上海夜网论坛 not meet expectations; the progress of channel reform did not meet expectations; 2.
Uncertainty risks such as policy adjustments; industry prosperity continues to decline.