Wuliangye (000858) 2019 Interim Results Preview Comment: Performance continues to increase and room for improvement 四川耍耍网 is still large Maintain BUY rating
Investment Highlights: Event: The company announced the 2019 half-year forecast, and the first half revenue was about 271.
500 million, an increase of 26 in ten years.
5%, the net profit attributable to shareholders of listed companies is about 9.3 billion, which will increase by 31% in the future; revenue in the second quarter alone is about 95.
600 million, an annual increase of 27%, net profit attributable to the mother 28.
300 million, an annual increase of 32%.
Revenue and profit continued the high growth trend in the first quarter, in line with market expectations.
Investment Ratings and Estimates: Due to the company’s continued rapid growth in the first half of the year, we slightly raise our profit forecast and predict that the EPS for 2019-2021 will be 4.
43 yuan, 5.
51 yuan, 6.
54 yuan (4 last time.
28 yuan, 5.
24 yuan, 6.
17 yuan), a year-on-year increase of 29%, 24%, 19%. The current expected corresponding PE for 2019-2021 is 27x, 22x, 19x respectively. Maintain BUY rating.
We believe that the company has entered a process of quantitative change to qualitative change in 2019, and all departments of the company are undergoing positive changes. The core work of this year is the launch of the eighth generation of Puwu, and at the same time promote channel reform, introduce the control disk distribution model, and digitize.The marketing system, through combing to create a matrix of high-end products to increase the price, and solve the core problem of channel profitability.
At present, a series of actions of the company have been gradually implemented, the cash can be improved step by step, and the new journey of entrepreneurship has continued.
The price of Xinpu Wu’s successfully listed market continued to increase and the trend was positive.
The high growth in the first half of the year was mainly due to the volume and price growth of the high-end product Wuliangye series. The focus of the second quarter was the listing of the eighth-generation Puwu.
Combined with channel feedback, the introduction of the eighth generation and the fifth generation was smooth, the market rate of channels and terminals continued to increase, and consumer tasting results and acceptance were good.
The ex-factory price of the eighth generation is 889 yuan, an increase of 100 yuan from the earlier seven generations, and the dealer’s asking price was initially increased from 959 yuan to 1,006 yuan. The terminal guidance price was 1,399 yuan, and the price increased steadily.
At present, the market is in the transition period of the eighth and seventh generations of common circulation. The price of the seventh generation products has steadily increased, and the approval price has reached 930-940 yuan. The earlier lowest price is less than 800 yuan. The approval price has rebounded significantly.The actual transaction price reached around 1,000 yuan, and the price has gradually been 北京夜网 accepted by consumers.
After the company’s digital system was launched, coupled with the adjustment of the coaxial organizational structure, the execution power and the degree of refinement of operations have been greatly improved, the release rhythm has been accurately grasped, and the channel inventory has remained at a reasonable level of about one month.
The good performance of the price has improved the profitability of the channel, and the cohesion of dealers and the confidence in the future development of the brand have been greatly improved.
From the perspectives of volume and price performance and channel confidence, the company’s development trend is still good, and improvements continue to be realized.