Information: The performance of the strong fragrance leader is stable and progressive Wuliangye's revenue in the first three quarters was 49.721 billion yuan

Fragrant dragon head, steady and far-reaching.

On the evening of October 29, Wuliangye (000858. SZ) disclosed the third quarterly report, the first three quarters achieved revenue of 49.721 billion yuan, net profit of 17.327 billion yuan, continued double-digit growth to give the market confidence. At the same time, the company continued to be increased by a number of institutions, further confirming the company's value in the capital market.

Analysts believe that the performance growth of Wuliangye in the first three quarters means that the company's marketing organization changes, product system optimization, digital transformation and other effective results, laying a solid foundation for the company's annual growth goals.

High-quality development has been held by the "national team" for a long time

According to the third quarterly report, from January to September this year, Wuliangye achieved operating income of 49.721 billion yuan, an increase of 17.01% over the same period of the previous year; and achieved a net profit attributable to shareholders of listed companies of 17.327 billion yuan, an increase of 19.13% year-on-year.

In the first three quarters, the company's net cash flow from operating activities increased by 290.47% year-on-year to 15.398 billion yuan. The company said that it was mainly affected by the increase in cash inflows generated by operating activities, one was the low cash base received from the sale of goods and the provision of services affected by the epidemic in the same period last year, and the second was the increase in operating income in the current year and the increase in cash receipts due to bank acceptance bills, resulting in an increase in cash inflows from operating activities in the current year.

Fragrant dragon head, word-of-mouth online, sustained double-digit growth in performance, abundant cash flow... Behind the high-quality development, Wuliangye continues to be optimistic about securities companies. Wind data shows that in the past Three Months, there have been more than 40 research reports "recommended" or "bought" Wuliangye, with the highest target price of 345 yuan.

China Merchants Securities Research Report pointed out that looking forward to the follow-up of Wuliangye, the first is that the eighth generation of Wuliangye batch prices have gradually stabilized, and the second is that the layout of classic Wuliangye has begun to show results, and the series of wines can also contribute part of the increment. 3-year performance center to maintain 15-20%, corresponding to next year's 31X valuation, the current position is recommended appropriate allocation, maintain the 2021-2023 EPS forecast 6.25, 7.37, 8.65, give the target price of 295 yuan, reiterate the "highly recommended -A" rating.

The latest research report of Western Securities also said that Wuliangye's price plate is stable, the channel inventory is low, the sales are good, the double-digit growth of the annual revenue target can be expected, with the gradual increase in the proportion of group purchase channels, the sales volume of classic Wuliangye has increased steadily, and the company's profits are more flexible.

Not only have securities companies repeatedly recommended, but also a number of institutions have long been optimistic about the development of Wuliangye. Compared with the third quarterly report and the interim report, among the top ten circulating shareholders, China Merchants CSI Baijiu Index Graded Securities Investment Fund, E Fangda Blue Chip Select Hybrid Securities Investment Fund, and Invesco Great Wall Emerging Growth Hybrid Securities Investment Fund have increased their positions in the third quarter, increasing their holdings by 2019.92 million shares, 1.5 million shares and 4.4848 million shares respectively. Among them, the China Merchants CSI Baijiu Index Graded Securities Investment Fund has increased its position for the fifth consecutive quarter.

At the same time, Wuliangye has always been the favorite of the "national team", Rener's stock price has fluctuated, and Central Huijin Asset Management Co., Ltd. has held the company's equity for many years and has not been reduced.

Five consecutive years of double-digit growth

The steady growth of performance benefited from Wuliangye's new journey of "secondary entrepreneurship" started in 2017, the company has completed changes in channels, organizations, products and brands since then, implemented the "100 million" project to strengthen terminal control, changed the organizational structure to achieve channel sinking, successfully iterated the core large single product Wuliangye, the brand value continued to rise, and digital marketing was effective.

Since the beginning of this year, the company has further strengthened the core status of the eighth generation of Wuliangye intergenerational series, gone all out to create Wuliangye classic series, and built a strong boost of high-quality market share; on the other hand, the company adheres to the ancient cellar series represented by 501 Wuliangye to enhance the brand value of Wuliangye, and meets the diversified needs of consumers with new consumption and new cultural creation personalized series products with high quality, Wuliangye product matrix is clearer, positioning is more accurate, and the "three sexes and one degree" brand management requirements are further practiced.

It is worth mentioning that in May this year, Wuliangye completed the trial sales of "Classic Wuliangye"; in June, Wuliangye built a marketing system of "Classic Wuliangye" in terms of channels, tasting, atmosphere creation, consumer cultivation, etc., and completed the market layout; in August, after the "Classic Wuliangye" was fully listed, it quickly triggered a "boom" in China's liquor quality consumption and became the "new favorite" of liquor market consumption.

Debon Securities believes that the classic Wuliangye has plunged into the new high-end price segment of 2,000 yuan to create a second growth curve. After completing the replacement of the eighth generation of Wuliangye, the management of Wuliangye has more patience for the operation of classic Wuliangye, more experienced in channel trading, and more coordinated management team, and it is expected that the classic Wuliangye is expected to increase the volume to more than 8800 tons at the end of the 14th Five-Year Plan, and the GAGR will reach 45%.

The series of wines has also achieved a return in value, benefiting from the company's vigorous promotion of the brand upgrade of the series of wines, and the series of wines has a more eye-catching recovery growth. Taking the results of the first half of the year as an example, the H1 series of wine products achieved revenue of 6.964 billion yuan, an increase of 38.57% year-on-year; sales volume increased by 29.5% year-on-year, tonnage prices increased by 7.0%; gross profit margin was 58%, an increase of 2.02% year-on-year.

In addition, the company's digital transformation has achieved channel refinement, and the expansion of new channels such as group buying has begun to show results. In 2020, the company opened the first year of the development of group buying, and last year, the proportion of group buying increased to 20%. At this year's annual shareholders' meeting, the company's management said that the repurchase rate of the 6,000 group purchase units established last year has increased significantly, and the repeat purchase rate has reached 90%. This year's plan is to reach 30% coverage, at this time more than halfway through, many group buying teams have completed this year's tasks.

It is understood that Wuliangye has achieved high growth of more than double digits in revenue for 5 consecutive years, forming a basic situation and fundamental advantages of direction and pattern in the fields of market, channel, brand, product and other fields, which not only draws a satisfactory end to Wuliangye's "Thirteenth Five-Year Plan", but also injects strong momentum and great confidence for enterprises to take advantage of the momentum to promote innovative development, transformation and development, leapfrog development, pursue higher quality development and achieve higher development goals.