Chongqing Brewery (600132) Annual Report 2018 Review: High-end Process Leads Net Margin to Further Improve Space
Investment Highlights Event: The company released its 2018 annual report and realized a real income of 34.7 trillion, ten years +9.2%, net profit attributable to mother 4.40,000 yuan, +22 a year.6%; of which 18Q4 income is 5.400 million, +11 a year.3%, net profit attributable to mother is 19.33 million yuan, +44 in ten years.At the same time, a cash dividend of 8 yuan (including tax) is planned to be distributed for every 10 shares. Both volume and price went up, leading the high-end process.1. In terms of overall sales, the company achieved 94 beer sales in 2018.430,000 kiloliters, previously +6.4%, which is the first time that the company has achieved a positive growth since the sales volume of the company’s closed factory strategy has been continuously renewed.2. In terms of ton price, the company’s ton price in 2018 reached 3,544 yuan, which was + 2% in the past, and the ton price continued to increase.The company continues to promote its high-end product strategy and focuses on investing in mid-to-high-end product series. High-end products such as Lebao and Chongqing Chunsheng have continued to grow, and high-end (more than 8 yuan) sales have increased by +6.4%, mid-range (4-8 yuan) +15 for ten years.9%, the low-end series was reduced and replaced, and sales decreased by -3.1%.3. In terms of specific products, Chongqing sales increased by +6.7%, Shancheng three years -1.7%, Lebao sales quarter +16.1%, sales accounted for 23.8%; Carlsberg ranked 6th in sales.3%.The Chongqing brand has completed the replacement of the Shancheng brand, and the Lebao series has rapidly increased its volume, and its product structure has been significantly optimized.4. From the perspective of sales regions, the three core markets the company focuses on are Chongqing, Sichuan, and Hunan. Both the volume and price are rising. The Chongqing market is optimizing its product structure, with sales revenue + 6% and sales volume +4.8%; in Carlsberg’s “big city” strategy and the completion of the Yibin factory, Sichuan’s growth momentum is obvious, revenue + 22%, sales +15.8%; Hunan income +7.7%, sales +3.0%. The gross profit margin of structural optimization increased, the expense ratio of internal control strengthened decreased, and asset impairment still had an impact in the short term.1. The gross profit margin of beer is 39.58%, ten years +0.72pp, the first is product structure upgrade and supply chain optimization to reduce production costs; 2. Sales expense ratio 13.1%, year -1.52pp, the company’s advertising costs have decreased compared to 17 years; the management expense ratio4.4%, a decline of 0 per year.46pp, optimization of internal processes to further improve operational efficiency.Three rates 18.1%, down 2 every year.2pp.3. In terms of asset impairment, the amount of asset impairment was reduced by 93.4 million yuan, an increase of 37% over 17 years, mainly due to the provision of 24.53 million inventories for idle and lent packaging, and 14.5 million for the “Shancheng” trademark impairment34.47 million fixed assets impairment caused by the closure of Hunan Changde Branch.4. Asset impairment affects the company’s net profit to a certain extent, but the company’s net interest rate continued to increase by 1 in 2018.88pp to 12.15%, profitability continued to improve. The product structure upgrade momentum is expected to expand strongly and the industry is facing an inflection point. There is still room for net profit to continue to increase.1. Compared with domestic beer brands, Heavy Beer brings high-end series after Carlsberg’s entry into the market, and its product matrix is richer. At present, it has formed a “local strong brand” represented by Chongqing and Pure Health.成都桑拿网The representative “international high-end brand” has a reasonable product structure and a high-end advancement process; 2. The reduction of the tax increase rate started in April 2019 will help beer companies improve their profitability.3. In the context of the overall closure of factories, adjustment of structures, price increases, and cost control, the beer industry ushered in a turning point in profitability in 2019.Heavy beer’s pace of closing factories, product structure optimization, and expense control are at the forefront of the industry. The impact of conversion asset impairment is eliminated, and there is room for continued improvement in net interest rate. Profit forecast and rating.It is expected that EPS for 2019-2021 will be 0.99 yuan, 1.18 yuan, 1.38 yuan, net profit attributable to mothers will remain 18 in the 天津夜网 next three years.4% composite strength, maintaining the “overweight” level. Risk reminder: The prosperity of the beer industry continues to be low, and sales may be less than expected.