Yanjing Beer (000729): Wait for improvement measures to show results
The semi-annual performance has increased steadily, and the second-quarter performance has declined: in the first half of 2019, the company achieved operating income of 646,186.
0.6 million yuan, an increase of ten years.
Pioneer’s beer sales volume is 257.
850,000 kiloliters, the decline in ten years narrowed to -0.
The sales volume of Yanjing’s main brand was 175.
960,000 liters, at least 3 temporarily.
3 major brands sold 62.
160,000 kiloliters, an increase of 10 in ten years.
Benefiting from the optimization of product structure, the ton price of beer increased by about 2.
0% to 2325 yuan, the company’s overall gross profit margin increased by 0.
14pct to 42.
Due to the budget decline in the second quarter of each year3.
8%, reducing operating leverage, sales expense ratio and management expense ratio increased by 1.
1pct and 1.
7pct, so the company’s net profit attributable to its mother increased slightly by 1 in the first half of the year.
1成都桑拿网3% to 51,237.
230,000 yuan, net interest rate maintained at 7.
The initial net cash flow from the company reached 13.
68 yuan, an annual increase of 26.
Continue to promote mid-to-high-end wines and promote product structure optimization: Integration. The company adheres to the strategy of “based on refreshing wines, focusing on mid-range wines, and enhancing brand value with high-end wines”. It promotes product upgrading through technological innovation, and successively launchesBeijing U8, Yanjing 7th fresh, Yanjing eight scenery cultural and creative products, and other high-end new products, as well as bottle customization services.
At the same time, the company adopted a form of brand promotion and based on sports marketing, expanding the rights of the FA Cup sponsors, the official sponsors of the Winter Olympics and other rights, continued to enrich the brand value, and constantly increased the company’s advertising cost rate.
2 points to 2.
The advantage of the base market is maintained, and the emerging market is able to enhance its potential: by mid-2019, the company’s sales share in the main markets of North and South China will remain 42.
0% / 32.
7%, the gross margin level increased up to 0.
59pct / 0.
38pct, the profit contribution of the dominant market has further increased.
From the perspective of the regional market, the company’s brand market share averages over 70% in the advantageous areas, and it is easy to obtain scale effects in operations, which is the basis for price increases and high-end products. For weak areas, the company further strengthens market maintenance and benefits.Pay equal attention to the total.
From the perspective of categories, the current low-end still contributes major sales, and high-end lines have not yet appeared in high-skilled single products, resulting in an average ton price at the lowest level in the industry.
The company’s advantage in the base market helps to promote the rapid penetration of high-end categories, increase future profit margins and break through elasticity. Maintain “Overweight” rating: We maintain a net profit of 2 for 2019-2021.
1 ppm, the corresponding EPS is 0.
The company’s profit elasticity hinders room for improvement and helps to benefit from the industry asset consolidation trend.
The current anniversary corresponds to 19 years of PE, with EV / EBITDA of 78x / 18 respectively.
Maintain the “overweight” rating.
Risk warning: market competition deteriorates; raw material costs rise; structural upgrades proceed slowly