Wuliangye (000858): successfully completed the 50 billion target in 19 years, next year will focus on brand building and increasing approvals

Wuliangye (000858): successfully completed the 50 billion target in 19 years, next year will focus on brand building and increasing approvals

19 years was the year when the company’s marketing was broken, and it successfully completed its 50 billion revenue target.

It is said that Weijiu, wine industry and other media reported that the company said at the investor exchange meeting that it would be able to achieve the initial 50 billion revenue target set in 19 years. We believe this fully reflects the company’s vigorous reforms this year.

This year, the company carried out a number of reforms including organizational structure adjustment, data system construction, 北京夜网 serial liquor brand cleaning, and marketing team construction.

The eight-generation Wuliangye approval price has stabilized at more than 900 yuan, the transaction price has stabilized at more than 1,000 yuan, and the brand power has increased significantly.

At the 1218 conference, the coverage of dealer rewards was significantly expanded, and the amount of rewards was significantly increased.

We believe that the company will set a guide for dealers’ actions next year in the form of rewarding excellent dealers, rather than giving general rebates directly. This is a strategic change that is conducive to further increase of approval.

Steady progress will be achieved in 2020 to achieve double-digit revenue growth, with marketing efforts centered on brand building and increasing approvals.

According to the Weijiu report, the company stated that the overall thinking of its marketing work in 2020 is to adhere to the overall tone of stability, with price (batch price) as the core, brand building as the core, and revenue to maintain double-digit growth.The volume has maintained an increase of at least 5-8%.

We think the reason why the growth rate of investment volume is so conservative next year is because the macroeconomic situation is still uncertain next year, and the second is that the company hopes to continue to maintain prices next year.

In 2020, the target of series wine will reach 10 billion, and it is expected to reach 13 billion by 2021.

After two consecutive years of cleanup, the “4 + 4” product system of series wines has gradually become clear. We believe that the growth of series wines will accelerate in the next year.

We are optimistic about the performance elasticity brought about by the company’s channel reform. We expect the company’s revenue to be 501 in 19-21.

41/584.

74/677.

00 ppm, an increase of 25 per year.

26% / 16.

62% / 15.

78%, net profit attributable to mothers was 174.

19/208.

40/247.

USD 5.9 billion, an annual increase of 30.

15% / 19.

64% / 18.

81%, EPS is 4 respectively.

49/5.

37/6.

38 yuan / share, corresponding to PE at 29/24/20 times the latest closing price.

With reference to the company’s historical PE estimates and industry estimates, we give 28 times PE in 2020 with a reasonable value of 150 yuan / share.

risk warning.

The progress of the reform was less than expected, the approval price was raised less than expected, and food safety risks.