At a time when the liquor industry is in a period of deep adjustment, Yanghe shares have once again achieved contrarian growth.
Looking back on 2023, we can see that the "involution" of the consumer market has intensified, and the "reshuffle" of the liquor industry continues. However, for Yanghe, it is a year of steady growth.
Judging from the financial report, Yanghe's performance in 2023 has many highlights. According to the data, in 2023, Yanghe will achieve an operating income of about 33.126 billion yuan, following the revenue of 30 billion yuan in 2022, and once again stand firmly in the "30 billion" club; The net profit also exceeded 10 billion yuan, achieving 10.016 billion yuan.
In fact, looking back on Yanghe's 2023 through data, it can be seen that its performance growth is the result of the joint action of products, channels, brand potential energy and team management.
In the face of 2024, many brokerage institutions expressed optimism about Yanghe. Zheshang Securities mentioned that the company is still in the adjustment period, and under the deep cultivation of the base camp and the depth of nationalization, the target of operating income in 2024 is highly attainable.
Net profit entered the 10 billion mark, showing a "steady" growth posture
The liquor industry in 2023 has gone through twists and turns, with weak consumption, inverted prices, and high inventories, and a series of intricate keywords intertwined to form the consumption picture of the entire industry in 2023. According to data from the China Liquor Industry Association, from January to December 2023, the liquor industry achieved a total output of 6.29 million kiloliters, a year-on-year decrease of 5.1%; the sales revenue was 756.3 billion yuan, a year-on-year increase of 9.7%; The profit was 232.8 billion yuan, a year-on-year increase of 7.5%.
The contrarian growth of Yanghe may have brought a new demonstration for the industry to go through the cycle.
In terms of operating data, Yanghe has maintained a steady growth posture. The financial report shows that in 2023, Yanghe's revenue will achieve double-digit growth, and its net profit will also achieve a breakthrough, successfully entering the threshold of 10 billion yuan of net profit.
In terms of separation, on the product side, Yanghe will achieve revenue of 28.539 billion yuan for mid-to-high-end liquor in 2023, a year-on-year increase of 8.82%, and ordinary liquor will achieve revenue of 3.95 billion yuan, a year-on-year increase of 20.70%.
In fact, the layout of the product side is the foundation for Yanghe to achieve high-quality development. In 2023, Yanghe will continue to firmly implement the development strategy of "double famous liquor, multi-brand, multi-category", instigate the overall situation, build products in depth, optimize product structure, and release strong brand revival potential to the outside world.
At present, Yanghe has formed four product matrices: "Dream Blue Handicraft Class, Dream Blue M9, Top Row Su Liquor, Guijiu Family and other high-end brands, Dream Blue M6+, Dream Blue Crystal Edition and other sub-high-end main growth brands, Sea Blue, Sky Blue and other popular cornerstone brands, art wine series, micromolecule and cross-border wine and other innovation opportunity brands".
From the perspective of the market, Yanghe has achieved steady growth in both the provincial and foreign markets. In 2023, Yanghe's provincial market will achieve operating income of 14.675 billion yuan, a year-on-year increase of 8.05%, accounting for 44.30% of operating income; The operating income of the market outside the province was 18.451 billion yuan, a year-on-year increase of 11.85%, accounting for 55.70% of the operating income. In addition, by the end of 2023, the number of Yanghe dealers reached 8,789, an increase of 551.
The development of markets inside and outside the province is inseparable from Yanghe's channel reform, which has successfully promoted the implementation of its product strategy in various markets.
Since the "1320" strategy was proposed, in 2023, Yanghe Co., Ltd. is actively implementing relevant plans, establishing a business school platform, realizing three major refinement projects, and continuing to implement a series of activities such as strong business and rich business business, so as to truly realize the co-creation, co-construction and win-win situation of manufacturers.
In addition, in 2023, Yanghe's brand potential energy will also continue to increase. In the past year, Yanghe Co., Ltd. has successfully taken advantage of high-end events such as the Shanghai Cooperation Summit, the Film Huabiao Awards, and the New Year's Eve Speech of the World Brand to plan a series of Chinese aerospace activities such as the "Yanghe Dream Blue" rocket, which not only expanded the influence and popularity of the Dream Blue brand, but also further enhanced consumers' awareness and favorability of the brand.
It is worth noting that the annual report also mentions that in terms of shareholder returns, the basic earnings per share in 2023 will be 6.65 yuan, an increase of 6.8% year-on-year. In 2023, it is proposed to distribute a dividend of 46.6 yuan (tax included) for every 10 shares, with a total cash distribution of 7.02 billion yuan, and the dividend rate of Yanghe shares has increased to 70% for the first time, taking a leading position in liquor stocks.
Yanghe's performance has also been recognized by some brokerage institutions. Zhongtai Securities mentioned in the research report that the company's fundamentals are stable, the product system is gradually sorted out and improved, the blue of the sea and the blue of the sky have a national foundation, and there is still a certain growth potential through the sinking of regions inside and outside the province, and the fundamentals are bottomed.
Ping An Securities Research Report believes that Yanghe's revenue has grown steadily, its performance outside the province has been better, and its sales expense rate has increased. Benefiting from the upgrade and replenishment of the public banquet, it is expected that Sky Blue and Crystal Dream will perform better. At the same time, Dream Blue M6+ has obvious competitive advantages in the price band of 600-800 yuan, and the follow-up demand for business improvement is expected to pick up, the profit of dealers after the replacement of channel-side products is improved, and the internal reform is also continuously promoted, and the long-term development can be expected.
The first quarter of 2024 is off to a good start
Obviously, Yanghe's "steady attitude" has formed an inertia that will be passed on to 2024. According to the data, in the first quarter of 2024, Yanghe achieved revenue of 16.254 billion yuan, a year-on-year increase of 8.03%, and net profit attributable to the parent company was 6.055 billion yuan, a year-on-year increase of 5.02%.
2024 is a year for Yanghe to accelerate its leapfrog and development, and it is also a year for Yanghe to deepen reform and deep transformation. A number of brokerages and industry experts have judged that under the premise of superimposed multi-dimensional growth advantages, Yanghe is more likely to achieve its growth target.
From the current point of view, Yanghe is continuing to make efforts for new business goals and is walking in the forefront of the industry.
First of all, in terms of products, Yanghe's product structure is constantly improving. On the basis of the existing product matrix, Yanghe is further moving towards the high-end. At the Spring Sugar Conference in March, Yanghe released a new product of Dream Blue Handicraft Class to focus on the high-end market. At the sealing ceremony in April, Yanghe officially released the "Mianrou Vintage Old Liquor Strategy" that it has always adhered to, and officially launched the 10, 15 and 20 series of high-end products of Dream Blue Handicraft Class.
Wang Chaocheng, chairman of Shengchu Group, said: "The cost-effective quality war has become a breakthrough in the high-end market, and I believe that Dream Blue Handicraft Class will become one of the most large-scale high-end brands of 1,000 yuan in China." ”
Secondly, from the perspective of channels, after continuous adjustment and optimization, Yanghe has entered the "manufacturer symbiosis 4.0 hematopoietic stage". At the dealer conference in April this year, Yanghe proposed to create a "fusion chain" of "wanting to be together, standing together, working together, and struggling together" in the future, and shape the "symbiotic chain" of "entrepreneurial community, wealth community, career community, and life community", and vigorously enhance the expectation index, trust index, satisfaction index, and happiness index of dealer partners.
In addition, Yanghe also empowers dealers in all aspects: establishing a growth business school platform for communication, learning and improvement, and effectively improving the comprehensive ability of Yanghe's dealer partners; Implement the three refined projects of "strong business, rich businessman, and help businessman", and give dealers assistance and support in terms of sales model upgrading, business guarantee mechanism, and long-term incentive mechanism; Refine 20 preferential measures to achieve co-creation, co-construction and win-win results for manufacturers, focusing on enhancing brand potential, reducing operating costs, alleviating financial pressure, digital empowerment, and purifying the market environment.
The construction of marketing system is also the key point of Yanghe's steady development. In recent years, Yanghe has continuously strengthened the combing of the marketing system, established Yanghe brand sales company, Jiangsu Shuanggou liquor sales company, and Guijiu brand sales company by brand, and continuously optimized the subordinate regions and business divisions...... Further clarify the boundaries, clarify responsibilities, focus on separate lines, and operate professionally, so as to facilitate the development of Yanghe, Shuanggou, Guijiu and Lihua Villages with higher organizational and operational efficiency and management effectiveness.
Obviously, today's Yanghe strategic blueprint is clearer, tactical measures are more accurate, the organizational structure is more perfect, the manufacturer team is more combative, the trust and viscosity between dealers and Yanghe are further enhanced, and the market penetration is further enhanced, which not only lays the foundation for the sustainable growth of Yanghe market revenue, but also builds a virtuous cycle of ecosystem, which is also the core competitiveness of Yanghe's future development.
The old wine strategy has been accumulated steadily
In fact, from the perspective of the entire industry, the consumer market continues to pursue the scarcity value of high-quality liquor, and old liquor has also become the most popular category among consumers because of its long cycle, high cost and scarce resources. According to the "2024 Aged Liquor Consumption Trend Report", the transaction scale of China's aged liquor market has exceeded 100 billion yuan, and it is expected to exceed 150 billion yuan in the next five years.
In terms of the layout of old wine, Yanghe, which adheres to "long-termism", has multi-dimensional advantages.
The first is capacity. In terms of the capacity expansion of base liquor in the liquor industry, Yanghe can be called an "infrastructure madman". Since 2000, Yanghe has added new production capacity every year. According to the data, Yanghe has more than 70,000 famous and high-quality cellar pools, more than 1,000 wine-making teams, and an annual production capacity of more than 160,000 tons of raw liquor...... It has become the world's leading solid liquor fermentation base in terms of brewing scale, providing sufficient resources for the implementation of the old liquor strategy.
The second is reserves. According to the annual report, there are currently more than 600,000 tons of puree aged wine of different years in Yanghe, and the storage capacity of wine can be as high as 1 million tons, of which 230,000 tons of high-end vintage wine stored in pottery jars. This large-scale storage ensures that the quality and taste of old wine can be continuously improved over time, which also means that Yanghe can flexibly respond to market changes and adjust the supply strategy of old wine according to market demand.
Finally, there is storage management. According to public information, over the past ten years, Yanghe has expanded the production capacity of a large number of famous and high-quality base wines through several famous and high-quality liquor brewing technology transformation projects, and in 2023, 100,000 tons of Yanghe and 120,000 tons of Shuanggou pottery jars will be built one after another to ensure that the liquor can maintain stable quality during the long-term aging process. This kind of fine management of the aging process of old liquor makes Yanghe's old liquor more advantageous in quality and taste, and further enhances its competitiveness in the industry.
The above-mentioned "One Tree and Three Flowers" product series of Dream Blue Handicraft Class 10, 15 and 20 are also launched based on multi-dimensional advantages, which is a concrete manifestation of the advantages of Yanghe old liquor.
Obviously, in the track of old wine, Yanghe's "long-termism" has paved a "broad road" for its steady growth. Zheshang Securities mentioned that the company relies on more than 60 tons of old wine reserves to fully launch the real vintage strategy, and the recent dream 6+ ex-factory price has been raised by 20 yuan, and the fourth generation of dream blue manual class has been officially listed, which will help build a high-end image on the brand side and improve the profits of dealers on the channel side.