Fosun's entry to empower "Chuanjiu Jinhua", willing to double the net profit of the liquor industry last year

　　Securities Times reporter Ruan Yunsheng

　　The left hand "Longshan Pearl" Jinhui wine, the right hand "Chuanjiu Jinhua" is willing to be in the wine industry, and Fuxingxing entered the liquor industry, further demonstrating the empowering effect.

The latest performance report shows that Shede Liquor will achieve an operating income of 4.969 billion yuan in 2021, a year-on-year increase of 83.8%, a net profit attributable to shareholders of listed companies of 1.246 billion yuan, a year-on-year increase of 114.35%, and a basic earnings per share of 3.76 yuan.

　　The previous performance forecast showed that in 2021, Shede Liquor achieved a net profit attributable to shareholders of listed companies of 1.23 billion to 1.28 billion yuan, a year-on-year increase of 112% to 121%.

In contrast, the profit level disclosed in this performance bulletin is closer to the lower limit of the forecast.

　　At the end of December 2020, Yuyuan shares, a subsidiary of Fosun Galaxy, won 70% of the shares of Tuopai Shede Group Company through auction, thereby indirectly controlling 29.95% of the shares of the listed company; in January 2021, after the equity change was completed, Guo Guangchang became the actual control of the listed company people.

　　2021 is also the first fiscal year for Fosun to take over Shede Wine Industry.

Regarding the performance growth, Shede Wine Industry pointed out that during the reporting period, the company continued to promote the old wine strategy, the quality of old wine was further recognized, the price rose steadily, the channel profitability level rose steadily, the number and quality of distributors improved significantly, and there were more and more loyal consumers. Achieve revenue growth and profit growth.

　　Everbright Securities pointed out that Shede Wine Industry regretted missing the golden decade due to its high-end failure, and problems such as lax price control and capital embezzlement, which once limited the company's development potential.

In 2021, when Fosun took over SkyOcean, it was willing to return the management to restore confidence in the channel. The company used informatization to strictly manage and control the price list, to find the excellent merchants that had been lost, and to set reasonable incentive assessment targets. to accelerate the process of nationalization.

From the perspective of the industry structure, with the upgrading of consumption and the optimization of the supply and demand pattern of liquor, Wuliangye and Guojiao have raised their supply prices, and the sub-high-end price ceiling has been further opened. .

　　At the 2022 Shede Wine Industry Annual Work Conference held on February 12 this year, the company's executives introduced the strategic positioning. Shede Wine Industry "adheres to the strategy of endogenous growth and extensional development layout", and the strategic theme still revolves around the "old wine strategy". , dual-brand strategy, rejuvenation strategy, and internationalization strategy” four strategies, clearly plan the medium and long-term strategic goals, and formulate a specific path to achieve the strategic goals.

　　In terms of market performance, since Fosun Galaxy officially entered the market in 2021, the share price of Shede Liquor has been sought after by capital, with a cumulative increase of 1.35 times, the top gainer in the liquor sector.

The performance of another company, Jinhui Liquor, in which Fosun has a stake, has also continued to grow, and it has made a breakthrough in markets outside the traditionally advantageous regions.

　　In the first three quarters of last year, thanks to the adjustment of the company's product structure and the rapid growth of growth markets, Jinhui Wine achieved a net profit of 243 million yuan, a year-on-year increase of about 50%.

　　According to the company's executives previously introduced to investors, the main sales market of Jinhui wine is concentrated in Gansu and the northwest region of Gansu, and is actively expanding in East China.

In the first three quarters of 2021, growth markets such as western Gansu and other regions including markets outside the province have grown rapidly; the province has implemented the transformation of the two-wheel-driven marketing model of "deep distribution + key customer operation". Mature regions mainly promoted the upgrading of product structure, and the sales achieved a slight increase compared with the same period of the previous year.

　　It is worth noting that the capital operation in the sub-high-end liquor market tends to be frequent.

Following COFCO's acquisition of Jiuguijiu, China Resources Strategic Investment has also strategically invested 49% of the controlling shareholder of Golden Seed Wine.

　　Guotai Junan analysis pointed out that in the post-epidemic era, liquor is structurally prosperous, and the logic of high growth is still there.

Since the beginning of 2022, the market has been pessimistic about the economic growth center. Under the structural prosperity of liquor, the sub-high-end price will benefit from consumption upgrades at the same time, and the market scale will continue to expand rapidly. At the same time, regional liquor brands have implemented employee incentives to increase the enthusiasm for channel cooperation. In the context of the low market share outside the province, it is expected to further expand the national market.