Wuliangye (000858) Investment Value Research Briefing
October 27, 2021
<h1 class="pgc-h-decimal" data-index="01" > basic information</h1>
Wuliangye, stock code 000858, closed at 215.69 yuan on the morning of October 27, 2021, with a market value of 837.2 billion yuan, a current market value of 837.2 billion yuan, and a dynamic price-earnings ratio of 31.71 times. Mid-report ROE: 14.30%.
Yibin Wuliangye Co., Ltd. ("Wuliangye") was established on April 21, 1998, with a registered capital of 3.882 billion yuan and 25,882 employees, and its office address: No. 150, Minjiang West Road, Cuiping District, Yibin City, Sichuan Province.
It was listed on April 27, 1998, with an issue price of 14.77 yuan, raised 1.159 billion yuan, and issued a price-earnings ratio of 13 times.
Main business: liquor production and sales.
The chairman of the board, Mr. Zeng Congqin, 53 years old, doctoral degree, held office: September 19 to present.
As of October 27, 2021, the total number of shares was 3.882 billion, and the number of restricted shares was 9.98w. As of June 30, 2021, the total number of shareholders was 417,000 (421,600 as of March 31, 2021).
The controlling shareholder is Yibin Development Holding Group Co., Ltd. (holding ratio 34.43%), and the actual controller is Yibin State-owned Assets Supervision and Administration Commission (holding ratio 34.43%).
As of September 30, 2021, a total of 773 institutions held Wuliangye, holding a total of 354 million shares, with a market value of 77.568 billion, accounting for 9.11% of the outstanding shares (630 had 1979 holdings, with a total holding of 3.024 billion, a market value of 903.769 billion, accounting for 78.16% of the outstanding shares, a sharp decrease of 88.48% in the current period). The top three companies with the largest number of shares are (China Merchants CSI Baijiu Index (LOF) A, holding 5599.62w, with a market value of 12.285 billion, accounting for 1.44%; E Fangda Blue Chip Select Mix, holding 3130.00w, with a market value of 6.867 billion, accounting for 0.81%; E Fangda consumer industry stocks, holding 1273.50w, with a market value of 2.794 billion, accounting for 0.33%).
<h1 class="pgc-h-decimal" data-index="02" > Wuliangye's 2021 mid-year report</h1>
Summary of Financial Statements:
Monetary funds amounted to 76.65 billion, accounting for a staggering 68.5% of current assets. Operating profit accounted for 49.8% of total operating income. The debt ratio is quite low, at only 27.17 per cent, and nearly one-third of the liabilities are dividends payable. Strong profitability, low debt, liquor is really a good business. Revenue and net profit increased by 19.45% and 21.6% year-on-year, respectively. This growth rate is also good.
Monetary funds: 76.65 billion / current assets = 68.50%
Inventory: 13.24 billion
Notes receivable and accounts receivable: 18.37 billion
Receivables financing: $3.269 billion
Advance: 280.7 million
Total other receivables: 6683w
Long-term equity investment: 1.824 billion
Fixed assets: 5.694 billion
Construction in progress: 2.011 billion
Right-of-use assets: 888.8 million
Intangible assets: 432.7 million
Goodwill: 162.2w
Long-term amortization cost: 141.7 million
Deferred income said assets: 1.422 billion
Total current assets: 111.9 billion
Total illiquid assets: 12.72 billion
Total assets: 124.6 billion
Bills Payable and Accounts Payable: $5,274 million
Contractual liabilities: 6.328 billion
Compensation payable to employees: 3.584 billion
Taxes payable: 2.032 billion
Total other payables: 14.64 billion
Dividend payable: 10.86 billion
Lease liabilities: 908.1 million
Deferred earnings: $252.9 million
Total current liabilities: 32.69 billion
Total non-current liabilities: 1,161 million
Total Liabilities: 33.85 billion / Total Assets = 27.17%
Undistributed profit: 62.63 billion
Total shareholders' equity: 90.74 billion
Total operating income: 36.75 billion (up 19.45% yoy)
Operating cost: 9.204 billion
Taxes and surcharges: 5.083 billion
Selling expenses: 3.555 billion
Overhead: 1.534 billion
Finance expense: -857.7 million
Total cost of operations: 18.6 billion
Operating Profit: 18.3 billion / Total Operating Income = 49.80%
Net Profit: 13.84 billion / Total operating income = 37.66% (up 21.60% year-on-year)
Profit attributable to the parent company: 13.2 billion
Net profit after deduction: 13.13 billion / Total operating income = 35.73%
Cash flow inflows from operating activities
Cash received from the sale of goods and services: 36.08 billion
Other cash received in connection with operating activities: 630 million
Subtotal of cash inflow from operating activities: 36.73 billion
Cash paid for goods and services: 5.182 billion
Cash paid to and for employees: 4.120 billion
Taxes paid: 16.75 billion
Other cash expenditures related to operating activities: 1,968 million
Subtotal of cash outflow from operating activities: 28.02 billion
Net cash flow from operating activities: 8,707 million
Subtotal of cash inflow from investing activities: 4225w
Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets: 598.1 million
Cash paid for investment: 6150w
Subtotal of cash outflows from investing activities: 587.3 million
Net cash flow from investing activities: -555.9 million
Cash received for absorption of investments:-
Receipt of other cash related to fund-raising activities:-
Subtotal of cash inflows from financing activities:-
Cash paid to repay debt: 3.026 billion
Cash paid for dividends, profits or interest payments: 3792w
Payment of other cash related to financing activities: 194.5 million
Subtotal of cash outflows from financing activities: 232.5 million
Net cash flow from financing activities: -232.5 million
Increase in cash and cash equivalents: 7,919 million
Balance of cash and cash equivalents at the end of the period: 74.89 billion
<h1 class="pgc-h-decimal" data-index="03" > business analysis</h1>
Alcohol revenue of 34.102 billion, accounting for 92.79%;
Plastic products Revenue of 1.456 billion, accounting for 3.96%
Other Revenue was 1.057 billion, accounting for 2.88%
Printing Revenue7527.96% 0.20%
Glass bottle revenue 6178.58% 0.17%
<h1 class="pgc-h-decimal" data-index="04" > research report</h1>
China Merchants Securities October 12:
This year, the company's off-season to speed up the delivery speed, channel research feedback, the company's June off-season shipments doubled compared with 19 years, August to Mid-Autumn Festival before the volume of delivery compared with last year's double festival year-on-year increase, in the case of the overall supply increase, the General Five batch price in the Mid-Autumn Season 975-980, the National Day continued to sell, and some market prices increased slightly, the batch price has gradually stabilized.
Terminal flow rate fast inventory is low, brand power is once again verified. According to our Mid-Autumn Festival National Day visits to dealers and terminals in many places, the dealer inventory during the National Day period continued to decline for about a week compared with the Mid-Autumn Festival, for 10 days to a month, and the low inventory of the terminal flow rate is once again to verify the brand power of the 5,000 yuan price band.
Classic Wuliangye this year as the first year of the comprehensive market, the annual release target of 2,000 tons, the 14th Five-Year Plan period target of 10,000 tons.
Dongguan Securities September 27:
In terms of volume, in July 2020, the company officially launched the 120,000-ton ecological winemaking project (phase I). With the steady progress of the expansion project, the company's production capacity is expected to continue to be released. It is expected that by the end of the 14th Five-Year Plan, the company will achieve a production capacity of 400,000 tons of raw wine. According to the calculation of the wine yield of Wuliangye-based liquor of 10%-15%, the production capacity of Puwu is expected to exceed 40,000 tons after the completion of the project. In terms of price, according to the company's current actual development, under the catalysis of the increase in the proportion of group purchase channels and product optimization and upgrading, the tonnage price of the company's products is expected to further rise.
