Wuliangye (000858) Third Quarterly Report Review: Q3 Results Meet Expected Profitability
Incident Description The company disclosed three quarterly reports on the evening of October 30 that the first three quarters had a net profit of 125.
40,000 yuan, an increase of 32 in ten years.
11%, revenue 371.
20,000 yuan, an increase of 26 in ten years.
84%; of which the third quarter net profit was 32.
08 million yuan, an increase of 34 in ten years.
Event Comment Q3 continued to accelerate growth compared with the first half of the year, and cash flow indicators performed well.
The company achieved operating income of 371 in the first three quarters of 19 years.
2.0 billion, net profit attributable to mother 125.
400 million, an increase of 26.
84% and 32.
11%, of which Q3 achieved operating income of 99.
51 ‰, +27 for ten years.
10%, net profit attributable to mother 32.
08 thousand yuan, ten years +34.
55%, the chain continued to accelerate growth in the first half of the year, Q3 company expanded the eighth generation of five general delivery (shipping about 5,000 tons).
Therefore, whether in the first three quarters or the third quarter, Wuliangye’s operating income has maintained an increase of more than 25%, and it is expected to achieve the company’s annual target of 50 billion U.S. dollars. This is mainly due to the increase in Wuliangye’s core product volume and price and the overall product structurefurther optimization.
In addition, the company’s net operating cash flow in the first three quarters was 161.
9.1 billion yuan, an increase of 317.
64%, mainly due to the increase in operating income this year and the increase in cash due to banker’s acceptance bills, of which net cash flow from single Q3 operating activities was 78.
26 trillion, an increase of 138 in ten years.
57%, indicating the company’s ability to create cash flow and self-hematopoietic function replacement; the advance payment in the first three quarters was 58.
65 ppm, an increase of 140 in ten years.
37%, an increase of 34.
70%, indicating that dealers are actively making payments.
Effective cost control and continuous improvement of profitability.
The company’s net profit margin for the first three quarters of 19 was 35.
38%, an increase of 1 each year.
32pct, with a single Q3 net interest rate of 33.
36%, an increase of 1 each year.
43pct, profitability is constantly improving.
Specifically: 1) The gross profit margin for the first three quarters was 73.
81%, increasing by 0 every year.
34pct with a single Q3 gross profit margin of 73.
80%, a decrease of 1 per year.
4pct, the company ‘s eighth-generation new products were mainly released in the third quarter, and the ex-factory price increased from the earlier seventh-generation, but the gross profit margin recovered and is expected to be affected by the quarterly accounting method.
2) The expense ratio during the first three quarters of sales was 13.11%, a reduction of 0 per year.
63pct, of which sales and management expense ratio are 10 respectively.
90% / 4.
99%, ten years +0.
38 / -0.
95pct; in a single 厦门夜网 quarter, of which selling expenses are 14.
00%, increase by 2 every year.
23pct, mainly due to the company’s marketing system transformation and upgrading and expansion of terminal investment, the management expense ratio5.
29%, down by 1 every year.
51pct, mainly because the company’s internal management is constantly optimized, and financial costs are reduced by -3.
40%, basically the same every year.
”Digital” empowerment, configure “accelerators” for marketing.
In accordance with the policy of “preliminary unification and horizontal specialization”, the company will re-establish 7 large marketing centers into 21 marketing theaters, and set up 60 marketing bases to create a deeply cultivated regional market of “headquarters management and theater management.”, Respond quickly to the market model; add more than 260 outstanding marketing personnel, sink planning, personnel, cost accounting and other variables to the front line, promote the team’s transformation to digital terminal marketing, and improve the terminal and consumer precision service capabilities.
The company’s marketing digital platform is officially launched. In this way, after the channel marketing and dating “digital” tool, it becomes a protection of consumer rights; instead, it can make the marketing chain shorter, the process transparent, and visualized, thereby achieving more convenient and accurate, and waste of resources.Less, management closer to the market is more effective, and marketing efficiency will naturally increase.
Investment recommendations The company’s target revenue for 2019 is to grow by 25%. The first three quarters of the existing company’s performance have exceeded 25% growth, and it is expected to complete the company’s annual target of $ 50 billion.
After the Mid-Autumn National Day, the price of the eight-generation general five-ton price has stabilized at 910-940 yuan. Although the price has fallen somewhat, the shortage of Maotai is still obvious, which is good for Wuliangye and the old warehouse. At the same time, the company’s channel and management capabilities have been continuously improved and the goal has been achieved.
It is estimated that the company’s net profit attributable to its parent in 2019-2021 will be 171.
1.7 billion, 207.
15 billion, 245.
5.1 billion, with EPS of 4.
41 yuan, 5.
34 yuan, 6.
32 yuan, corresponding to the company’s closing price of 141 on August 30.
50 yuan, PE is 30 times, 24 times, 21 times.
Maintain “Buy” rating.
There are risks Food safety risks, macroeconomic downside risks leading to a sharp decline in the price of high-end wine