Zhujiang Beer (002461) 2019 Third Quarterly Report Review: Q3’s Outstanding Performance Double Channel Capacity Optimization to Ensure Long-Term Growth

Zhujiang Beer (002461) 2019 Third Quarterly Report Review: Q3’s Outstanding 武汉夜网论坛 Performance Double Channel Capacity Optimization to Ensure Long-Term Growth

I. Event Overview The company released the third quarter report for 2019 on October 21, and the company achieved operating income of 34 in the first three quarters.

88 trillion, +5 for ten years.

47%; net profit attributable to mothers4.

54 ppm, +43 a year.

40%; basic EPS is 0.

21 yuan.

Among them, Q3 achieved revenue of 13 in a single quarter.

79 trillion, +5 ten years ago.

44%; net profit attributable to mothers2.

42 trillion, +50 for ten years.

63%.

Second, the analysis and judgment of revenue have maintained a slight increase. Q3’s single quarter net profit is the best level in nearly five years. In the first three quarters of 2019, the company achieved revenue / net profit of 34.

88/4.

54 ppm, +5 for ten years.

47% / + 43.

40%, of which Q3 achieved revenue / net profit 13 in a single quarter.

79/2.

43 trillion, +5 for ten years.

44% / + 50.

63%, the profit growth rate increased significantly.

Overall, the company’s revenue maintained a steady growth at a low to medium speed.

Benefiting from the rapid increase in product gross profit margin, the company’s profitability performance was dazzling. The first three quarters of transition and Q3’s single quarter net profit attributable to mothers all reached nearly 5 to the best level.

The company’s gross profit margin in the first three quarters of 2019 was 46.

28%, ten years +4.

36 averages; Q3 single quarter gross margin 51.

03%, ten years +6.

46 units.

The increase in gross profit margin is definitely an increase in the proportion of high-end products, and the product structure continues to optimize.

Expenses during the first three quarters21.

65%, ten years +0.

63 units; of which the selling expense ratio is 17.

27%, ten years +0.

65%; management expense ratio 9.

32%, -0 per year.

55 units; financial expense ratio -4.

93%, ten years +0.

54 units.

19Q3 Expenses during a single quarter20.62%, ten years +1.

23 units, of which the sales expense ratio is 17.

54%, ten years +2.

46 units; management expense ratio 7.

09%, at least -2.

12 units; financial expense ratio -4.

01%, ten years +0.

88 units.

The root cause of the increase in the sales expense ratio Q3 is the increase in channel expenditures in order to cope with the phased offensive in the company’s core market; the increase in the financial expense ratio is due to the decline in financial income from the raised funds.

The catering and night market channels have made significant efforts. The improvement of the channel structure has promoted product upgrades. In the first three quarters of 2019, the company’s catering and night market channels have made significant efforts.

It is estimated that the company’s catering channel sales ratio is expected to reach about 18%, which is close to 3 subdivisions from the same period of the previous year; the night market channel is expected to reach about 5%.

The demand for high-margin products in the catering and night channel will help further optimize and upgrade the company’s products.

The “1997 Pure Health” product launched by the company this year mainly promotes the catering channel, and the growth rate is fast; Snow Fort 298mL small canned products are gradually being sold in Guangzhou, Foshan, Dongguan, Shenzhen and other night markets.

In addition, the company’s O2O project with Ali consolidated and strengthened the development of new retail channels.

The above-mentioned increase in the proportion of high gross profit channel sales will strengthen sales of mid- to high-end products and increase the company’s overall gross profit margin.

The operation of factories outside the province has improved, and there is room for the best optimization of production capacity in the province. In the first three quarters of 19 years, through the improvement of industry competition and the recovery of production and sales, the company’s operations outside the province have improved.

Among them, the Hunan plant is expected to achieve profitability during the year; due to the many low-end products of the Hebei plant, it is expected to further reduce losses during the year.

Taken together, the drag on profits of factories outside the province will further reorganize.

From the perspective of long-term capacity planning, the construction of the Dongguan and Zhanjiang factories is still steadily advancing. After commissioning, it is expected to complement the tight production capacity of the Nansha plant during the peak season, and take into account the production capacity layout of East Guangdong and West Guangdong, thereby further optimizing the company’s overall capacity layout.

Third, earnings forecast and investment recommendations Based on Q3 performance’s unexpected performance, we raised our capital earnings forecast.

It is estimated that the company will realize operating income in 19-21.

02/46.

46/50.

41 trillion, ten years +6.

5% / + 8.

0% / + 8.

5%; the company’s net profit attributable to the parent is expected to be 4 in 19-21.

93/5.

36/5.

880,000 yuan, +34 for ten years.

6% / + 8.

8% / + 9.

6%, the EPS corresponding to the latest equity is 0.

22/0.

24/0.

27 yuan, the current corresponding PE is 32/29/27 times.

At present, the overall beer sector is estimated to be about 50 times. The company’s estimated level is lower than the industry average, taking into account the growth brought about by the company’s rising prosperity in its main business.

Maintain the “Recommended” level.

4. Risk warning: high-end products are blocked, competition in the industry is intensified, and food safety issues.