Wuliangye (000858) Company dynamic comment: Mid-Autumn Festival smoothly transitioning to the expected goal without worry

Wuliangye (000858) Company dynamic comment: Mid-Autumn Festival smoothly transitioning to the expected goal without worry

Matters: The company held an extraordinary general meeting on 南京桑拿网 September 27, 2019, and the meeting merged and approved five matters concerning the adjustment of directors of the fifth board of directors.

The chairman of the fifth board of directors of Wuliangye Co., Ltd. Zeng Congqin, the deputy chairman of Wuliangye Group and the executive deputy general manager Zou Tao of the company fully exchanged information with investors on the company’s performance and future plans.

Key points for investment: The Mid-Autumn Festival peak season has passed smoothly, and the revenue target of 50 billion yuan can be expected.

The company increased delivery in the mid-autumn season according to market demand, the market order is good, and it has improved significantly compared with previous years. First, the dealer’s confidence is restored, and the price fluctuation is consciously maintained. Second,四川逍遥网 the company completes the digital transformation of marketing, and monitors the dealer through technical means.Strict compliance with the contract and orderly sales.

We expect to ship nearly 5,000 tons in the third quarter. Each year, the high-end Wuliangye is progressing smoothly. In 19 years, the company’s revenue will exceed 50 billion yuan, and it can be expected.

The volume and price policies will be more scientific and accurate.

In terms of sales planning next year, the company has several basic principles.

First, the traditional channels: gradually to the dealers with good resource quality and compliance with grades, reduction of poor quality; second, to invest in the blind zone market; third, vigorously develop group buying channels, group buying as a new growth point next year.

In terms of price, prices will continue to be very close to the 1399 guide price.

The company will formulate scientific volume and price strategies through detailed market mapping to achieve volume and price matching.

The 19-year performance is highly deterministic and has long-term growth potential.

Mid-Autumn Festival National Day channel demand is positive, the company appropriately increased the amount of investment, is expected to increase production by 20% +, incorporating the ex-factory price increase contribution, the third quarter performance is high.

It is expected to be implemented in October, and the series of wines have completed the predetermined goals, so the camp’s goals are highly deterministic.

Looking forward to next year, the price of Moutai is tight, the price is high, the Spring Festival is ahead of schedule, and the sales season is long.

In the next 3-5 years, the brand concentration will increase, and consumption will continue to upgrade. Wuliangye, as a strong fragrance faucet, has a broad space for volume and price.

Profit forecast and rating: The company’s 19/20/21 revenue growth rate is expected to be 27%, 18%, and 15%, respectively, and the net profit attributable to the parent company will be 32%, 23%, and 20%, respectively.

At present, the PE corresponding to the market value is 29X, 24X, 20X. The 19-year performance is highly deterministic, and the long-term growth potential is abundant.

Maintain the “Recommended” level.

Risk warning: Macro fluctuations exceed expectations, food safety issues