Yanjing Beer (000729. SZ) in 2023 continues to improve management efficiency, production capacity layout is more reasonable, market vitality continues to increase, the company in the first half of the year to achieve a total operating income of 7.625 billion yuan, a year-on-year increase of 10.38%, and a net profit attributable to the parent of 514 million yuan, a year-on-year increase of 46.57%.
Yanjing Beer's profit growth rate is faster than the revenue growth rate, and the interim report shows that the gross profit margin of the company's beer industry has increased from 41.05% in the first half of 2022 to 41.79% at present, indicating that the company's revenue quality is better. Choice data shows that Yanjing Beer, driven by good performance, has 143 brokerage research reports since 2023, a significant increase from 19 in the same period in 2022, indicating that professional research institutions are optimistic about the company's development this year.
The profit in the second quarter increased by double digits year-on-year, and the revenue of mid-to-high-end wines contributed strongly
In terms of quarters, Yanjing Beer achieved a net profit attributable to the parent of 449 million yuan in the second quarter, a year-on-year increase of 28.47% compared with the first half of 2022, and a month-on-month increase of 595.95% compared with the first quarter of this year, with a considerable profit growth rate.
Production: Research Institute of Listed Companies in the Financial Sector; Source: Juling Finance
Yanjing Beer's beer production and sales business accounts for more than 90% of the company's main business. According to the data of the National Bureau of Statistics, after the domestic per capita beer consumption reached a maximum of 37.2 liters in 2013, it entered the stock market from the incremental market, and the per capita beer consumption decreased year by year. Over the years, people have paid more attention to the quality and brand effect of beer, and under this trend, wine companies have transitioned from the production and operation model of small profits and quick sales to the pursuit of high-end wines in pursuit of quality.
As one of the largest beer group enterprises in China, Yanjing Beer is headquartered in Beijing, listed on the Shenzhen Stock Exchange in 1997, the company insists on the main business for 26 consecutive years has never changed, under the trend of structural transformation of the beer industry, Yanjing Beer continues to increase the research and development of new products, and constantly develop more humanized and personalized wine, on the basis of meeting consumer needs, increase the production of high-end beer.
Since 2019, the operating income and proportion of Yanjing Beer's mid-to-high-end liquor have been continuously increased, and the company's mid-to-high-end liquor revenue will reach 7.686 billion yuan in 2022, an increase of 31.06% over 2019; The revenue of ordinary wine in 2022 was 4.525 billion yuan, down 7.12% from 2019. According to the data of the first half of 2023, Yanjing Beer's mid-to-high-end liquor and ordinary liquor achieved revenue of 4.578 billion yuan and 2.483 billion yuan respectively, and the mid-to-high-end liquor contributed significantly to the company's operation.
Production: Research Institute of Listed Companies in the Financial Sector; Source: Annual Report
The medium and high-end liquors of Yanjing beer mainly include Yanjing white beer, Yanjing U8, Yanjing pure raw beer, Yanjing fresh beer, Liquan 1998 and other products, and ordinary wines are mainly Yanjing dry beer, Yanjing refreshing and other products. From the perspective of the gross profit margin reported in 2023, the medium and high-end wine products are 47.01%, which is 14.84 percentage points higher than that of ordinary wines.
In addition, the transition from ordinary beer to craft beer is also a trend of high-end beer industry, which in turn improves the gross profit level of wine. Yanjing Beer said at the investor research meeting that the company's two major craft beer production bases in Beijing and Guangxi have become production bases for the rapid incubation of high-end brands and products. Yanjing Beer will lay out other new craft brewing production bases according to market needs and continue to provide high-quality specialty products.
Large item U8 accounted for more than 10% of sales, and e-commerce channel revenue grew steadily
Yanjing's mid-to-high-end wine U8 beer integrates the sensory characteristics of "clean, fragrant, sweet, bright, fresh and refreshing", and adopts exclusive hop extraction, acetaldehyde reduction, fresh locking and other technical processes to carefully create, so that Xiaodu wine has a great taste.
According to the data of Yanjing Beer's 2022 annual report, the company achieved beer sales of 3.7702 million kiloliters, a year-on-year increase of 4.12%, of which Yanjing U8 sales were 390,000 kiloliters, a year-on-year increase of more than 50%. Yanjing U8 sales growth rate is faster than the company's overall level, sales accounted for 10.34%, contributing more to the company's revenue.
Since the advent of Yanjing U8 in 2019, the company has formed a product matrix of large single products and characteristic product combinations represented by Yanjing U8 and Yanjing V10, and achieved brand rejuvenation, global coverage, product diversification and transformation through strong brands, consolidated channels, deep cultivation of the market, lean operation and other measures, and enhanced the competitiveness of enterprises.
In the "14th Five-Year Plan", Yanjing Beer determined the core position of U8 major single product strategy, and the company continued to do a good job in ensuring all aspects, including brand influence, full participation, regional promotion, omni-channel sales, and strengthening market promotion.
In the era of continuous pursuit of youth and personalization in the beer industry, Yanjing U8 has gained widespread attention and recognition with its unique taste, cool appearance and interesting pull ring color cover. According to data from e-commerce platforms such as Double 11 in 2022 and Jingdong 618 this year, with the blessing of many hot-selling items such as Yanjing U8, V10, craft white beer, and original pulp white beer, Yanjing beer ranks in the top 2 beer sales on multiple platforms such as Tmall official flagship stores and Jingdong official flagship stores.
Yanjing Beer's e-commerce channel revenue continues to grow, the company currently layout Jingdong, Tmall, Pinduoduo, Douyin and other platforms, in 2022 the company will achieve revenue of 239 million yuan, a year-on-year increase of 65.98%. In the first half of this year, Yanjing Beer achieved an operating income of 81.0903 million yuan.
Practicing ESG spirit, dividends accounted for 64% in 2022
As the subject of CSI 500, Yanjing Beer has a total market value of 29.707 billion yuan, which is a local state-owned enterprise. Yanjing Beer actively practices the spirit of ESG and attaches great importance to shareholder returns. The company will be 352 million yuan in 2022, a year-on-year increase of 54.51%. Based on last year's business performance, Yanjing Beer distributed a cash deposit of 0.80 yuan (including tax) for every 10 shares on July 4, and a cash dividend of 225 million yuan.
It is worth noting that the ratio of dividends to net profit attributable to the parent of Yanjing Beer in 2022 is 64%, an increase of more than 100% compared with the proportion of dividends in 2020. Among the 7 A-share beer companies, Yanjing Beer's dividend proportion is second only to Chongqing Beer, ranking second.
Production: Research Institute of Listed Companies in the Financial Sector; Source: Juling Finance
In addition to rewarding shareholders with a high proportion of dividends, Yanjing Beer also took the initiative to respond to the call of "comprehensively promoting rural revitalization and accelerating the modernization of agriculture and rural areas", implemented rural construction actions, orderly strengthened the docking and contact with the help areas, established a normalized help mechanism, communicated more with the help areas, effectively understood the actual needs of the villagers and tried to help; Assist the assisted areas to better cooperate and exchange, consolidate the achievements in poverty alleviation, and help rural revitalization and development.
On the basis of the double-digit high growth of revenue and profit in the first half of 2023, Yanjing Beer will continue to promote the construction of excellent management system, market construction, supply chain construction and other key work with the new development concept, so that the management efficiency will continue to improve, the talent structure and production capacity layout will be more reasonable, the market vitality will continue to increase, and the brand potential will continue to improve, so as to achieve sustainable and high-quality development of the company.
Source: Institute of Listed Companies in the Financial Sector
This article originated from the Institute of Listed Companies in the Financial Sector