Jiaozhou Laojiao (000568): Guojiao special song high growth profitability steadily improved

Jiaozhou Laojiao (000568): Guojiao special song high growth profitability steadily improved

Event: The company released its 2019 Interim Report with revenue of 80 in 19H1.

1.3 billion, an increase of 24.

81%, net profit attributable to mother 27.

500,000 yuan, an increase of 39.


Q2 revenue was 38.

4.4 billion, an increase of 26.

01%, net profit attributable to mother 12.

35 trillion, the same increase of 35.


The growth rate of premium wines was in line with expectations, and mid-range special songs accelerated.

The company’s revenue by product in 2019H1 is as follows, with premium wine revenue43.

1.3 billion (+30.

47%), middle-class wine income 22.

2.3 billion (+35.

14%), low-end wine income13.

8.4 billion (+0.

68%), low-grade wine continued to adjust in the first half.

The sales of premium wines are good. Since this year, Wuliangye’s terminal prices have been rising all the way, and the inventory situation has been adjusted to a normal low level after the Spring Festival.

In terms of price, the company stopped stocks in the southwest and Shandong in the second quarter and the prices were quite high. At present, the approval price has risen 80 yuan earlier, channel profits have increased, and brand effects have increased.

The growth of mid-range wine mainly breaks through the curvature of the characteristics. The advance payment is expected to exceed expectations. The special song is mainly at the price of 300 yuan, highlighting the high cost performance. Through the two-year market, the rapid sales growth has begun to take shape.
The gross profit margin increased, and the selling expense ratio also increased from the previous quarter.

The gross profit margin of the company in H1 2019 has increased significantly4.

79pct to 79.

7%, of which the gross margin of high-end wine is 91.

61%, with an increase of 0.

53pct; gross profit margin of mid-range wine is 82.

57%, the same increase of 5.

03pct; gross margin of low-grade wine is 38.

85%, the same increase of 6.

58 points.

The reasons for the increase in gross profit margin mainly include: optimization of product structure, increase in special curvature price and reduction in substitution rate.

According to the company’s announcement issued in August, Guojiao has recently initiated an unscheduled price of 30% (+30 yuan / bottle), and the company’s 上海夜网论坛 gross profit margin will continue to improve in the second half of the year.

On the expense side, due to the company’s increased spending on high-end tastings, advertising and market expansion, 2019H1 sales expenses19.

2%, with an increase of 0.

64pct, Q2 chain increased by 4.

74 points.

2019H1 Management Fee Expense 4.53%, decreased by 1 pct with scale effect.

With the optimization of product structure, the company’s profitability has steadily picked up, and the net profit margin for 2019H1 reached 34.

32%, an increase of 3 per year.

68 points.

Profit forecast and investment advice: The company’s EPS for 2019-2021 is expected to be 3.

10 yuan, 3.

93 yuan and 4.

84 yuan, PE is 29 times, 23 times, 18 times, maintaining the “buy” level.

Risk warning: food safety risks; increased competition 武汉夜网论坛 in the industry

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