Yanghe handed over the report card: revenue in the first three quarters was 21.942 billion yuan, and net profit was 7.213 billion yuan

On October 26, Yanghe released the "Third Quarter Report of 2021". The report shows that in the first three quarters of 2021, Yanghe achieved operating income of 21.942 billion yuan, an increase of 16.01% year-on-year; Net profit was 7.213 billion yuan, an increase of 0.37% year-on-year. Among them, the third quarter achieved revenue of 6.399 billion yuan, an increase of 16.66% year-on-year; Non-net profit attributable to shareholders of listed companies was 1.682 billion yuan, an increase of 22.95% year-on-year.

According to the data, Yanghe's total operating income in 2020 was 21.101 billion yuan, which means that the revenue in the first three quarters of this year has exceeded the total revenue of last year. It is not difficult to see from the key data of the third quarter report that the dividends of Yanghe reform have been effectively released, and new growth momentum is also taking shape.

In addition to the growth of revenue and net profit, the net cash flow generated by the operating activities of Yanghe Co., Ltd. also performed well, up 1332.75% year-on-year, about 5.474 billion. Among them, the net cash flow generated by operating activities in the third quarter was 3.381 billion, which not only increased by 48% year-on-year, but also exceeded the level of 2.093 billion in the first half of the year.

In fact, Yanghe has achieved the above results thanks to the orderly promotion of product adjustment and the deepening transformation of marketing. It is reported that since the beginning of this year, Yanghe has focused on the general tone of "deepening transformation and upgrading and gathering change potential energy", focusing on building a new type of manufacturer relationship from the perspective of the business community, thus consolidating the foundation of development and accumulating development potential.

At the same time, in terms of development strategy, Yanghe has also made two major adjustments this year: First, it has clarified the multi-brand and multi-category strategy and promoted the development model of one body and two wings, Yanghe as the first leading brand, Shuanggou as the second brand, and guijiu cascade follow-up; The second is to increase the strategic thinking of high-end products, conduct in-depth analysis around the product system of Dream Blue, and pay more attention to the layout of high-end brands.

Everbright Securities said that the relationship between Yanghe manufacturers has been gradually optimized, the inventory has maintained a benign level, the profit margins of each product have improved significantly, the enthusiasm of channels has been enhanced, the reform results have been further realized, and the fundamentals have continued to improve.

According to the feedback from the channel survey, M6+ has achieved good growth on the basis of completely replacing M6, and the consumption atmosphere in Jiangsu Province and some provinces with higher mainstream consumer price bands has been better cultivated. At present, M6+ has successfully achieved a leading scale in the 600+ price band in Jiangsu Province, and the sales have maintained strong performance; M3 crystal version completed the national investment introduction, channel inventory is healthy, the price system remains stable, with the enhancement of consumer cultivation, brand launch and other more sales work, the second half of the year is expected to return to the growth track.

In addition, the upgraded version of Sky Blue opened the market introduction at the end of July, there are changes in quality, packaging, specifications, anti-counterfeiting, short-term impact of the epidemic progress has a certain delay, it is expected to gradually exert force from the Spring Festival next year, to ensure the national growth of Yanghe still has a positive effect. Benefiting from the upgrading of the investment superposition structure, the development of Shuanggou is also relatively stable, of which Sujiutou Paijiu, Lusu and Zhenbaofang have performed better, and it is expected that Shuanggou will achieve a sales target of 4 billion yuan this year.

Guosheng Securities Research Report pointed out that under the dual brand strategy of Yanghe and Shuanggou, it is optimistic that the company's product structure will continue to upgrade and its performance will accelerate growth. Orient Securities Research Report also believes that the upgrade effect of Yanghe products is obvious, and channel profits have improved. At the same time, Yanghe is expected to promote the upgrading of the whole product line of Haizhilan and Shuanggou Wine in the next step, the future performance growth is certain, the reform process is expected to accelerate, and it is optimistic about the long-term business situation.

It is worth mentioning that on August 3 this year, Yanghe issued the announcement of the "First Phase core backbone shareholding plan". The announcement shows that the total number of people participating in the shareholding plan does not exceed 5100 people, and the performance appraisal requirement is that the company's operating income in 2021 will increase by no less than 15% compared with 2020. If the performance appraisal target is not achieved, all the interests in the underlying shares held by the shareholding plan will be recovered by the Management Committee.

Yanghe's revenue last year was 21.101 billion yuan, and according to the performance appraisal requirements, this year's revenue is at least 24.2 billion yuan. Judging from the revenue data of the first three quarters, Yanghe has achieved 90% of the performance appraisal requirements. Obviously, Yanghe has no pressure to complete the performance appraisal target.

In the view of Shenyin Wanguo Research Report, the core competitive advantage of Yanghe shares is still strong, and good results have been achieved from the perspective of adjusting the strategy, and the improvement trend is clear; In the long run, Yanghe co., Ltd. has further improved the construction of the talent team and the incentive mechanism, and the company's long-term growth space can still be expected.