Trainee reporter Wen Yan
"Will the performance be the same as the stock price in the future?" At the 2023 annual results online briefing held on the afternoon of May 13, investors asked the management of Yanghe.
Since January 2021, the share price of Yanghe shares has fallen by more than 60%, with a total market value of 143.5 billion yuan as of May 13, 2024.
At the same time, Yanghe's net profit attributable to the parent company in 2023 will increase by 6.8% year-on-year, significantly lagging behind the double-digit growth of leading liquor companies such as Kweichow Moutai and Wuliangye.
Zhang Liandong, chairman of Yanghe Co., Ltd., said: "The company's initiative to reduce the speed of transformation is for higher quality, more sustainable and healthier development. ”
In response to the downturn in the stock price of Yanghe shares for many years, some investors asked about measures to boost the stock price, and even proposed that the company give preferential treatment for the purchase of wine, so that some shareholders could get a trace of warmth, but the company's management did not respond positively.
Take the initiative to slow down and transform
Investors are puzzled: "Why is the company's performance in 2023 far worse than the top wine companies or even the industry average?" ”
In 2023, Yanghe's revenue, net profit attributable to the parent company, and net profit after deducting non-profits will increase by 10.04%, 6.80%, and 6.10% year-on-year respectively. On the other hand, the above three financial indicators of Kweichow Moutai and Wuliangye have achieved double-digit growth.
Zhang Liandong said that at present, the liquor industry has entered a period of deep adjustment, and the trends of "stock competition, structural growth, and brand concentration" will continue to be highlighted, and the market competition will become more and more intense. The company's initiative to reduce the speed of transformation is for higher quality, more sustainable and healthier development.
Yin Qiuming, vice president and head of finance of Yanghe Co., Ltd., said that in the second half of 2023, the company will shrink the supply in order to control the market inventory of mid-to-high-end liquor.
It is the consensus of the market that the liquor market is showing a trend of "strong differentiation and weak recovery".
According to the analysis of industry insiders, the structural growth of the liquor industry and the stock competition pattern are becoming more and more obvious, and the market share is accelerating to concentrate on the head brands and famous liquor companies.
To this end, Yanghe will carry out work in four aspects in 2024, including focusing on brand growth, sales increment, product quality, and management efficiency.
However, compared with the double-digit revenue growth target of the leading wine companies in 2024, Yanghe Co., Ltd. will strive to increase revenue by 5% to 10% year-on-year in 2024 and 8.03% year-on-year in the first quarter of 2024.
Zhang Liandong said that Yanghe Co., Ltd. formulated a revenue growth plan for 2024, taking into account factors such as the macro environment, the current situation of the liquor industry, and its own development strategy.
Investor support for development priorities
In the face of the current development trend of Yanghe shares, some investors put forward a number of suggestions to the management at the meeting.
On the product side, investors suggest that Yanghe refocus on the development of Haizhilan. The investor pointed out: "The blue of the sea is the basic market of Yanghe, but its market share is being eaten away by competitors, and its reputation on the Internet is not good." ”
According to the 2023 annual report of Yanghe Co., Ltd., among the company's leading products, Dream Blue (manual class, M9, M6+, Crystal Dream), Su Wine, Sky Blue, Zhenbaofang (Emperor Fang, Shengfang), Sea Blue, etc., are all medium and high-end liquors, with a factory price of ≥ 100 yuan/500ml.
In this regard, Zhong Yu, vice chairman and president of Yanghe Co., Ltd., only mentioned that Haizhilan, as the largest single product at a price of 100 yuan in the liquor industry, has been deeply loved by consumers since 2003, and the new version of Haizhilan revolves around consumer demand, and the main base liquor is stored for more than 3 years.
This has become the characteristics of the performance briefing, some investors raised many sharp questions, and gave a number of suggestions, but the management of Yanghe shares did not respond positively.
In terms of development trends, investors put forward that the direction of the liquor industry in the future is younger, high-end, and internationalized, but Yanghe has launched many new products in recent years, including micromolecules, ice cream, Yanghe Daqu classics, Yanghe blue classics for 20 years, handicraft class masters, etc., but they all seem to be "short-lived".
"There is no result when I do it, including WeChat video delivery, so many benefits were given away with such a big momentum at that time, and then there was no more, and the revision mentioned by the chairman of Yanghe Member Center at that time." The above-mentioned investors raised confusion.
In this regard, Zhang Liandong only responded that the company is advancing in an orderly manner according to the established pace of related products and work that investors are concerned about.
How to recover the "lost land" in the province?
Yanghe Co., Ltd. is headquartered in Suqian City, Jiangsu Province, and the liquor market in Jiangsu Province is its advantage, but the year-on-year growth rate of revenue in Jiangsu Province in 2023 is lower than that outside the province.
Some investors asked: "How are you going to recover the lost land in (Jiangsu) province, and what measures will be taken?" ”
Zhang Liandong responded that the liquor market in Jiangsu Province is the company's base market, and the company will deepen the construction of "product power, brand power, and channel power" in the Jiangsu market to increase market share and strengthen operations from many aspects.
Compared with the year-on-year growth rate of revenue in Jiangsu Province, which is lower than that of markets outside the province, the elimination rate of dealers in Jiangsu Province is also lower than that outside the province.
Some investors pointed out that since 2020, Yanghe has had a dealer elimination rate of about 30% outside the province, and a dealer elimination rate of only about 13% in Jiangsu Province. Why is the elimination rate of dealers outside the province so high? Why is there such a big difference in the elimination rate of dealers in Jiangsu Province and outside the province?
Zhang Liandong said that the elimination rate of dealers outside Jiangsu Province is relatively high, because with the development of enterprises, some small dealers can not meet the company's high-quality growth needs to withdraw actively, and most of the dealers in Jiangsu Province are dealers who accompany the company's continuous growth, and the company's business philosophy is more recognized, so the elimination rate is low.
In 2023, the overall revenue of Yanghe Co., Ltd. will be divided by region, with revenue of 14.393 billion yuan in Jiangsu Province and 18.096 billion yuan outside the province. Zhang Liandong introduced that the top five provinces in terms of revenue outside the province are Henan, Shandong, Jiangxi, Hubei and Anhui.
Repeatedly asked about the downturn in stock prices
At this performance briefing, the share price of Yanghe shares has been sluggish for many years and has become the focus of investors' attention.
For example, some investors asked, "How do you view the performance of Yanghe shares in the secondary market?" Does the company's sluggishness in the secondary market reflect the existing problems and how to deal with them? ”
Zhang Liandong said that the rise and fall of stock prices in the secondary market are affected by many factors, and the company's valuation is at a relatively low level in the industry at this stage, and the company's management will focus on the business.
Compared with the highest price of Yanghe shares in January 2021 of 258.86 yuan / share, as of May 13, 2024, the closing price is 95.25 yuan / share, with a cumulative decline of more than 60%, a dynamic price-earnings ratio of 5.92 times, and a total market value of 143.5 billion yuan.
To this end, some investors even proposed that for shareholders of Yanghe shares who hold a certain amount of shares for a long time, whether Yanghe shares can launch a discount for buying wine, so that they can feel a trace of warmth.
Some investors found that the number of reception surveys has decreased year by year, 12 times in 2019, 8 times in 2020, 5 times in 2021, 4 times in 2022, and 3 times in 2023.
Investors are puzzled: why is the number of surveys of Yanghe shares getting less and less?
Lu Hongzhen, secretary of the board of directors of Yanghe Co., Ltd., responded that the company attaches great importance to communication and interaction with investors and actively carries out exchange activities through various forms.
Investors turned to pay attention to how Yanghe shares can boost the stock price, enhance investor confidence and implement the double improvement action of improving quality.
Zhang Liandong responded: "If there are relevant matters, the company will fulfill its information disclosure obligations in a timely manner in accordance with regulatory rules." ”
Editor: Joey
Review: Chen Mo