Wuliangye (000858) Quarterly Report Comment: First-quarter performance slightly exceeded expectations, optimistic about Xinpu five price and channel reform implementation

Wuliangye (000858) Quarterly Report Comment: First-quarter performance slightly exceeded expectations, optimistic about Xinpu five price and channel reform implementation

The quarterly results of the event exceeded 四川耍耍网 expectations and welcomed the start.

The company announced the 2019 first quarter report, which reported that it achieved sales income of 175.

90 ppm, an increase of 26 in ten years.

57%; net profit attributable to the parent company after deduction of 65.

40 ppm, an increase of 31 in ten years.

85%; the corresponding basic EPS is 1.

67 yuan.

The core point of view is that the income growth rate is higher than expected, and the advance receipts are slightly inclined from the previous quarter.

In the first quarter, the company’s revenue growth rate was slightly higher than the planned target of 25%. The increase in gross profit margin caused the profit growth rate to exceed revenue.

Q1 company received advance payment of 48.

5.3 billion, down 18 from the previous month.

5.3 billion, a decrease of 15 per year.

91%, the slight decline in advance receipts was mainly due to a significant increase in cash flow driven by cash inflows and discounted bank acceptance bills.

Gross profit margin continued to increase, and profitability steadily increased.

Benefiting from higher approval prices and continuous upgrade of product structure, the gross profit margin of sales in 19Q1 reached 75.

78%, an increase of 2 a year.

59 points; net sales margin reached 38.

72%, an annual increase of 1.

2pct.

We believe that the listing of Xinpu Five is expected to drive the ton price to continue to increase, and gradually increase the gross profit margin of the product and the upward space.

1Q1 selling expenses expenses 7.

24% (+0.

02pct), management expenses 4.

41% (+0.

13 pct), expenses and expenditures are properly controlled, which basically matches the growth rate of income.

Channel profit improvement feedback is positive, Xinpu’s five probabilities are quite successful.

Channel tracking shows that the recent Wuliangye batch price has steadily increased to 860 yuan, dealers’ profit has improved, and channel enthusiasm has increased. Terminals are expected to receive goods generally.

We believe that the company’s main focus in the second half of the year is mainly on the high probability of success in sequential price increases and the continuous implementation of reforms: 1) Xinpu’s five probabilities are quite successful: First, the company strictly controls the scheduling rhythm and controls channel inventory at a reduced level.After the price increase, the phenomenon of rejection of goods is not easy to occur; the second is that the eighth generation Wuliangye has a limited distribution in the second half of the year, accounting for only one-third of the plan; the market tends to provide alternative demand;The seven major marketing centers were reorganized into 21 marketing theaters. Under the profit-sharing mode of the control panel, direct control terminals were realized through digital management, the number of small businesses was increased, and the layout of terminals was increased. 佛山桑拿网 The channels have ample momentum for improvement. The reform is expected to follow the trend, and subsequent development is worth looking forward to.

Financial Forecast and Investment Recommendations We maintain our previous profit forecast. It is estimated that the company’s earnings in 19-21 will be 4 respectively.

37, 5.

26, 6.

19 yuan, with reference to comparable companies, giving the company 25 times PE for 19 years, corresponding to a target price of 109.

25 yuan, maintain BUY rating.

The risk reminds that the channel profit weakens the risk and the price is lower than the expected risk.