Event: the company released its annual report of 2021 and quarterly report of 2022. The company achieved revenue of 1.58 billion yuan in 2021, + 21.2% year on year, and net profit of 200 million yuan, + 33.2% of the same period last year. 21Q4's revenue was 480 million yuan, + 8.4% compared with the same period last year, and its net profit was 70 million yuan, + 12.9% compared with the same period last year. In the first quarter of 2022, the company realized revenue of 560 million yuan, + 12.5% compared with the same period last year, and net profit of 70 million yuan, + 12.4% of the same period last year.
The product structure is optimized and the performance gradually recovers. In 2021, the company's performance gradually recovered, basically in line with expectations. In 2021, the company's medium-and high-grade wine / ordinary wine / glassware / other business realized revenue of 1100.1pm 0.3 billion yuan respectively, compared with the same period last year. + 27.4%, + 2.4%, 137.0%, 46.2%, respectively. Among them, the contribution of medium-and high-grade wine to revenue growth reached 85.6%, and the proportion of 3.4pct in revenue increased to 69.5%, which is the main driving force of revenue growth. The main reason is that the company adheres to the high-end strategy, continuously adjusts and optimizes the product structure, strengthens the operation and management of high-end products, and focuses on the three high-end markets of "national brew 1959, good wine, and blue and white drunken". National brew 1959 sapphire version and so on to achieve better sales.
The price of medium and high-grade alcohol has risen, which has led to the improvement of the company's profitability. As a leading enterprise in the yellow rice wine industry, the company's average price of high-end wine in 2021 was + 13.4% compared with the same period last year, and sales volume was + 12.4%. The gross profit margin of medium and high-grade wine increased by 0.8pct to 43.7%, much higher than that of ordinary wine (down from 2.2pct to 15.9%), driving the overall gross profit margin of alcohol to 36.1%, and the company's overall gross profit margin increased by 0.8pct to 36.0%.
The national layout has progressed steadily, and the proportion of sales revenue in areas outside Jiangsu, Zhejiang and Shanghai has increased. The company continues to nationalize the market network layout, while continuing to cultivate the core consumer markets in Jiangsu, Zhejiang and Shanghai, actively cultivate and guide the consumption of yellow rice wine in the peripheral and northern markets, and the results of national expansion are beginning to show. In 2021, the sales revenue of Jiangsu, Zhejiang and Shanghai regions was 960 million yuan, + 15.4% compared with the same period last year, and the proportion decreased from 2.2pct to 63.3%. The sales revenue of areas outside Jiangsu, Zhejiang and Shanghai was 520 million yuan, + 30.3% compared with the same period last year, increasing 2.9pct to 34.7%.
Profit forecast: from 2022 to 2024, the EPS is expected to be 0.25,0.29,0.35 yuan per share respectively, and the corresponding PE is 37X, 32X, 27X respectively, giving a "buy" rating.
Risk tips: repeated risk of epidemic situation; risk of fluctuation of raw material prices; risk of food safety.
