Recently, 5 listed companies mainly engaged in wine released their 2023 annual reports, in which all operating income has increased, but profitability has shown a clear differentiation trend. In addition, 2 companies have announced their profit forecasts for 2023, which are also mixed with joy. During the period of industry adjustment, which listed companies have stabilized their performance, and what trends in the development of the industry have been shown?
1
The leading enterprise Changyu is far ahead, and there are bright spots in Dynasty and Yiyuan
On the whole, Changyu, a leading wine company, has stabilized the fundamentals of the industry, achieving revenue of 4.385 billion yuan in 2023, a year-on-year increase of 11.89%, and a net profit attributable to the parent company of 532 million yuan, a year-on-year increase of 24.2%.
It is worth noting that Changyu's net profit in 2023 accounts for 333% of the total domestic wine industry, and Changyu's profit performance is particularly outstanding when most companies in the industry are losing money. The financial report shows that in 2023, the reform of Changyu Business Department has achieved remarkable results, and measures such as continuing to promote circle marketing and banquet promotion, and continuing to promote digital transformation have promoted the growth of performance.
Changyu's 2023 annual report
In 2023, Dynasty Liquor will achieve an operating income of about HK $263 million, a year-on-year increase of 9%, and a net profit attributable to the parent company of about HK $21 million, a year-on-year increase of 31%. In terms of products, Dynasty Wine's red wine showed strong development strength, with sales of about HK $138 million, a year-on-year increase of 21.25%, surpassing the 115 million Hong Kong dollar of white wine and regaining the throne of the most profitable category.
Dynasty 2023 Annual Report
Yiyuan Liquor's operating income in 2023 will be 65 million yuan, a year-on-year increase of 4.61%, and the net profit attributable to the parent company will be 100 million yuan, turning losses into profits on the basis of last year's loss of 600,000 yuan. According to the financial report, the performance growth of Yiyuan Wine is mainly due to the increase in sales of high-end wines.
Yiyuan 2023 Annual Report
In 2023, Yiyuan Wine sold 738,000 bottles of wine, which is a decrease from 827,000 bottles in 2022, but the average price of a single bottle has increased from 75.1 yuan to 88.1 yuan, which has driven the sales of high-end wines to increase from 58.3% in 2022 to 72.2% currently.
Finally, CITIC Niya revealed in the performance forecast that it is expected to achieve a net profit of 3.5 million yuan to 5.2 million yuan in 2023, while the loss in the same period in 2022 is as high as 881 million yuan. It is reported that the increase is mainly due to the reform of the marketing system of CITIC Niya and the growth of wine sales.
CITIC Niya 2023 results forecast
2
Differentiation has intensified, and profitability is the biggest test
Although from the perspective of operating income, the five companies that have announced their financial reports have all achieved growth, but from the perspective of profitability, ST Mogao, Tongtian Liquor and other companies are still losing money, and the gap between listed companies is widening.
ST Mogao will achieve revenue of 198 million yuan in 2023, a significant increase of 83.25% year-on-year, and the net profit loss attributable to the parent company will be 41 million yuan, which has not achieved a turnaround. At present, Mogao has diversified business segments such as wine, pharmaceuticals, degradable materials and products. Wine accounts for about 37% of the overall share, and the operating income in 2023 will be about 73.32 million yuan, a year-on-year increase of 97.13%, but at the same time, the operating cost has also increased by 56.72%, compressing profits.
Mogao 2023 Annual Report
Tongtian Liquor will achieve revenue of 189 million yuan in 2023, a year-on-year increase of 29.44%, and a net profit loss attributable to the parent company of 80 million yuan, an increase of nearly 2 times compared with the same period last year. As for the decline in net profit, the financial report showed that it was mainly due to the difficulty in the sales of high-end wines, in addition to the cost of raw materials increased by 47.7% year-on-year. In terms of products, the sales of sweet wine of Tongtian Wine Industry were 46 million yuan, a year-on-year decrease of 19.88%, and the sales of dry wine were 101 million yuan, a year-on-year increase of 51.31%.
Tongtian Liquor 2023 Annual Report
Weilong Co., Ltd. announced its performance forecast for 2023, with an estimated loss of 136 million yuan to 197 million yuan attributable to the parent company. According to the report, mainly due to the impact of the country's anti-dumping duty policy on Australia and the adjustment of product strategy, some raw liquor and distilled alcohol are expected to be impaired by about 110 million yuan due to excessive storage time and deterioration of quality.
Weilong's 2023 performance forecast
In addition, the gap between listed wine companies and small and medium-sized wine companies is widening. According to the 2023 industry data released by the China Wine Industry Association, the national wine industry achieved sales revenue of 9.09 billion yuan, a year-on-year increase of 4.8%, and a cumulative total profit of 220 million yuan, a year-on-year increase of 2.8%. At present, the total profit of several listed companies that have achieved profitability can reach more than 2.5 times that of the domestic wine industry. This also shows the difficulty of survival for small and medium-sized wine companies.
Li Wei (pseudonym), an expert in the wine industry, revealed that in 2023, although the listed companies represented by Changyu have stabilized the fundamentals of the industry, the industry as a whole is still facing a great dilemma this year, and it is understood that the sales performance of many terminal wine merchants in the first quarter of 2024 is not satisfactory, and some of them have experienced a decline of 15%-30%, so the data of listed companies in the first quarter may also have ups and downs.