Kouzijiao (603589) Interim Review: Channels Do Deep Q2 Revenue Acceleration Structure Steadily Moves Up
The company announced its 2019 Interim Report, with revenue of 24 in 2019H1.
1.9 billion / + 12.
04%; net profit attributable to mother 8.
9.5 billion / + 22.
02%; of which revenue in Q2 2019 was 10.
5.7 billion / + 16.
3%; net profit attributable to mother 3.
50 ppm / + 23.
What do we expect the company 2019?
Realize net profit attributable to mothers in 2021.
22 ppm, an increase of 19 years.
9% / 17.
6% / 16.
7%, corresponding to an EPS of 3.
Currently sustainable corresponding to 2019?
The PE in 2020 is 20.
0 都市夜网 times.
The company operates steadily, has an excellent product structure, and continues to benefit from the upgrade and concentration trend. As the channel sinks and speeds up, it gradually squeezes out the market share of 100 yuan in the county and township market.
Maintain the “Highly Recommended” rating.
Channels in the province are sinking and accelerating, and the contribution of sales outside the province has significantly increased. In 2019H1, the number of dealers in the province increased by 34 to 384, with sales revenue19.
2.7 billion / + 9.
28%, accounting for 80%. The province actively exerts the initiative of manufacturers to enter the enhanced hotel channel control and public relations of key enterprises. At the same time, it accelerates the improvement of the township market distribution agency network, the channel sinks and speeds up, and the future township market sales contribution contributes to improvement.Based on large businesses outside the province, it actively screened and optimized 20 dealers outside the province and reported a series of revenue4.
7 billion / + 26.
90%, accounting for 20%, the contribution of sales outside the province has increased significantly.
The structure has been moved up, and the new products will help to upgrade the mainstream price dividend. The company’s products have always been excellent, and the sales revenue of high-end liquor in H1 201922.
8.2 billion / + 11.
7%, accounting for 95%, middle and low-grade liquor sales revenue1.
1.4 billion / + 26.
77%, accounting for about 5%.
It is expected that the products in the key markets of Kouzi Warehouse for 10 years and above will still maintain a growth rate of more than 20%.
The price of 200 yuan in the province has been steadily expanding and becoming more mature. New products in the early summer (priced at 268 yuan / bottle) and Zhongqiu (398 yuan / bottle) are expected to accept the mainstream upgrade price (200-300 yuan) bonus. It is expected to increase Q3 performance in the short term.
The price increase pushed up the gross profit margin, and the expenses remained stable. The overall gross profit margin of the company in 2019H1 was 75.
94%, with a rise of 1.
55 points, mainly due to the upward shift in product structure and the 2018 price increase contribution.
In terms of expense ratio, 2019H1 sales expense ratio and management expense ratio are 9 respectively.
47% and 4.
4%, respectively decreased by 0.
29 points and 0.
36pct; the gross profit margin increased during the supplementary period and the fees fell, the net profit of the company in 2019H1 was 36.
99%, with the same rise of 3.
Risk warning: intensified competition in the province, impeded sub-high-end prices, hindered expansion outside the province, and food safety risks.