The author | Zhao Shiyong of Deepwater Finance and Economics
On the evening of October 26, Yanghe Co., Ltd. released the third quarterly report, the first three quarters of the company achieved operating income of 21.942 billion yuan, an increase of 16.01% year-on-year; net profit of 7.213 billion, an increase of 0.37%. Especially in the third quarter, the company's revenue and net profit growth rate is relatively strong, the quarter to achieve operating income of 6.399 billion yuan, an increase of 16.66% year-on-year; net profit after deduction of non-profit of 1.682 billion yuan, an increase of 22.95%.
In recent years, the competitive landscape of the liquor industry has undergone great changes, and it has entered the stock integration from the previous incremental expansion, and the market share has continued to concentrate on the head enterprises.
Yanghe shares are also in a critical period of reform and recovery, under the leadership of the new chairman Zhang Liandong, one hand to grasp the product and the other hand to change the system, the company is expected to enter the performance cash period in advance.
Yanghe's "two-handed grasp"
In terms of products, it is mainly to upgrade its product line and focus on improving product quality. Since the beginning of this year, the new version of Sky Blue has been upgraded, with its quality advantages of three fragrances and smooth comfort, it has been generally recognized by consumers, and the Dream Blue Crystal Edition has continued to lead the sub-high-end upgrade track, and "Dream Blue M6+" has also sat firmly in the position of high-end liquor products, and the main engine of successful company performance. Coupled with the new version of the blue of the sky and the blue of the sea, a "multi-pronged" situation has been formed.
In recent years, riding on the east wind of consumption upgrading, the entire liquor industry has blown up a wave of high-end. However, Deepwater Finance and Economics believes that the high-end of liquor should first be the high-end of quality, and then there may be a high-end of the price, if the cart is reversed, it is impossible to go far.
Yanghe obviously understands this basic truth very well, and Zhang Liandong once stressed: "Wine is the product of time, which requires us to maintain our concentration and original intention to lay a solid foundation for future development." Therefore, he believes that to make liquor, we must adhere to long-term doctrine.
"Quality is the lifeblood of Yanghe, and there can be no problems at any time."
In terms of system, Yanghe mainly reforms the marketing system, from in-depth distribution to "one business mainly, multiple businesses matching the name".
After the company's new chairman Zhang Lianlian took office, the marketing and management of Yanghe shares have been frequently moved, especially the implementation of the first core employee stock ownership plan since the listing, which is conducive to ensuring the stability and enthusiasm of core technology and management personnel, and escorting the long-term development of Yanghe.
The performance redemption period is approaching
In the first three quarters of this year, Yanghe shares operating income increased by 16.01% year-on-year, the low growth rate of net profit is mainly due to the change of fair value and investment income, if deducting non-recurring gains and losses, the net profit attributable to the mother in the first three quarters was 6.850 billion yuan, an increase of 21.57% year-on-year.
Especially in the third quarter, the company's revenue and deduction of non-net profit growth rate reached 16.66% and 22.95% respectively, which is a large "two doubles" data.
Looking at the growth drivers, Dream 6+ remains the main driving engine. According to the latest research report of Everbright Securities, the sales scale of Q3 Dream 6+ in the province has increased by 50% year-on-year, and the annual task has been basically completed by the end of the third quarter; the sales scale outside the province accounts for about 40%, of which the henan and Shandong markets are larger. In terms of other products, the crystal version of Dream 3 has now completed the investment promotion, and the comprehensive distribution has not yet been completed. The blue of the sea and the blue of the sky have recovered significantly, and due to the low base in the same period last year, it is estimated that Q3 also achieved a higher growth rate. Shuanggou brand in the company's high investment, strategic attention to the performance of the good performance, the first three quarters of sales increased by more than 35% year-on-year, it is estimated that Q3 year-on-year growth of more than 30%, high-end products head row Su wine, green Su growth more rapidly.
This year, the company's cash flow has shown a more significant improvement. In the third quarter, Yanghe achieved a cash recovery of 8.031 billion yuan in sales, an increase of 40.63% year-on-year, and a net cash flow from operating activities of 3.381 billion yuan, an increase of 47% year-on-year. As of the end of September, Yanghe's contract liabilities and other current liabilities were 6.7 billion yuan, an increase of 1.1 billion yuan from the end of June, further verifying that the enthusiasm of dealers to take goods has gradually recovered.
Over the years, Yanghe has occupied the market advantage with the operation of Dream Blue and Blue Classic Series, on this basis, and then deepening the operation through the Shuanggou plate market, the long-established brand is expected to gradually revive and gradually build a "double famous wine pattern".
Overall, Yanghe's market performance in the second half of this year still lived up to expectations, even slightly exceeding market expectations, and we look forward to the company's reform dividend redemption period to come as soon as possible.
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