The transformation of the model has been realized, and the second growth curve has been expanded smoothly. The company has gradually changed from the traditional offline supply chain to a new supply chain model based on offline network and diversified linkage between brand operation and own brand. In the past two years, the company has successively completed the operation of a series of high-end soy sauce brands such as Diaoyutai, Guotai and Abstract, and successively created a variety of popular style products for brands. At present, relying on the brand heritage and its own supply chain channel advantages, the company has rapidly realized the transformation from low gross margin in the traditional supply chain to high gross margin in the new retail category, becoming the second growth curve.
With its own brand rising abruptly based on its accumulated strength, the series of "Secret creation of Datang" has a high growth prospect. With the successful operation of the liquor brand, the company gradually sends its strength to its own brand and firmly grasps the initiative of brand core and price setting. The company launched the "Secret creation of Datang" in the second half of 21 years.
Series, and Datang never Night City jointly promote the cultural characteristics of the prosperous Tang Dynasty IP, in the product for different consumption scenarios, the formation of "Golden bottle", "Golden Seal" and "Jinding" three popular products, sales have begun to take shape. On the production side, the company has reached a deep cooperation with "Datang Liquor Industry". As a core soy wine enterprise located in Maotai Town, Datang Liquor Industry has a deep seniority, with an annual output capacity of more than 5000 tons, ranking fourth in Maotai Town soy wine production capacity. it is helpful for the company to better control the quality and output of base liquor supply. On the sales side, the price positioning of the "Datang Secret made" series of wines remains between 300 and 1200 yuan, which is different from the high-end positioning of Diaoyutai, Guotai and Abstract series operated by the brand, and the price range is relatively more close to the people. it is also more in line with the purchase needs of consumer groups in the current consumer demotion environment, with a wider audience. With the company's further control over the source of upstream supply, it will also have full autonomy in brand and price setting, and it may be possible to exchange materials for prices in the future to stimulate more room for development. With the continuous efforts of the company, it is expected that in the future, we will continue to build a mid-priced "Datang" series of own brands and achieve a perfect echelon of wine layout, and we also continue to be optimistic about the background of Chinese traditional liquor culture. the company has a broad market prospect after the gradual improvement of its own liquor brand.
The epidemic affects short-term performance under pressure, and the medium-and long-term upward trend remains unchanged. The company was temporarily adversely affected by outbreaks in southern and eastern China in the first quarter of this year, but is expected to return to the fast track in the second quarter as the domestic epidemic abates. In the medium and long term, we are still optimistic about the development potential of the company. Based on the strong basic plate business and experience in liquor brand operation, brand operation is expected to achieve re-replication, and related fields are also expected to take the lead in forming a closed loop to achieve leapfrogging from channel to brand. The future expectation difference mainly comes from the volume prospect of Datang's own brand under the guarantee of the company's underlying supply chain.
Major profit forecasts and assumptions: we maintain our previous profit forecast for the company, forecasting 2022-2024 net profit of 6.05 and 0.32 PE respectively, and maintaining a "better than the market" rating.
Risk tips: the recovery of the epidemic is not as expected, business development is not as expected, and financial pressure.
