Event: the company released its semi-annual report for 2022. During the reporting period, the company achieved a total operating income of 59.444 billion yuan, an increase of 17.20% over the same period last year, a net profit of 29.794 billion yuan, an increase of 20.85% over the same period last year, and a non-net profit of 29.763 billion yuan, an increase of 20.75%.
Main points of investment
Q2 performance is growing steadily, and the target for the whole year is expected: the company's total 2022Q2 revenue is 26.256 billion yuan, an increase of 15.89% over the same period last year, and its mother's net profit is 12.548 billion yuan, an increase of 17.28% over the same period last year. In terms of products, the business income of Maotai liquor in the first half of the year was 49.965 billion yuan, an increase of 16.34% over the same period last year, while that of series liquor was 7.598 billion yuan, an increase of 25.38% over the same period last year. Among them, 2022Q2 Maotai liquor and series liquor increased by 14.97% and 22.00% respectively over the same period last year. The company's total revenue growth target is 15% in 2022, and 45.77% of the total revenue target has been achieved in the first half of the year, with steady growth in overall performance and strong certainty in achieving the annual target.
I Maotai outstanding performance, reform dividend continued to release: the new management continued to promote channel reform and product structure adjustment, the first half of the construction results are remarkable: Channel end: the company's direct sales revenue in the first half of the year 20.949 billion yuan, an increase of 120% over the same period last year, accounting for an increase of 17 percentage points to 36.39%, of which the new direct sales platform I Maotai contributed a lot, as of June 14, according to the company's shareholders' meeting. I Maotai's revenue has exceeded 3 billion yuan. Product end: Maotai 1935, a new high-end product with a price of 1000 yuan, is highly sought after by consumers. its sales exceeded 900 million yuan in just 100 days, leading to the improvement of the product structure and tonnage price of the series of wines. We believe that the company has a firm pace of reform, continue to promote product structure and channel adjustment, recovery of external profits, the company's profit level still has room to improve.
The profitability increased year-on-year, and the expense rate declined steadily: 2022H1's gross profit margin and net profit margin were 92.11% and 53.99% respectively, an increase in 0.73pct/0.60pct over the same period last year, and a slight increase in gross profit margin and net profit margin, which we believe is mainly due to the increase in the proportion of direct sales and the improvement of the structure of a series of wine products. The sales expense rate / management expense rate of 2022H1 is 2.62% and 6.31% respectively, which is 3.86% lower than the same period last year and 3.86% lower than the same period last year. It is expected to be mainly used for online platform development and promotion as well as Maotai ice cream and other activities. Overall, the expense rate is stable and controllable, and profitability continues to improve.
Investment advice: we believe that the company can still achieve such a sound performance in the first half of the year despite frequent outbreaks, fully demonstrating the company's brand strength and the thickness of the moat; market-oriented reform is also constantly strengthening the control of the company's channels and product prices, series of wine product structure and price space still have great potential, we are optimistic about the company's long-term investment value. Based on the 2022H1 operating data released by the company, we slightly raised the company's profit forecast. It is estimated that the company's operating income from 2022 to 2024 will be 1,280.85 trillion yuan, an increase of 17.0%, 15.6% and 15.1% respectively over the same period last year. The net profit from homing is 616.84Universe 730.09Universe 84.874 billion yuan, an increase of 17.6%, 18.4% and 16.3% over the same period last year. The corresponding EPS is 49.10 × 58.12 × 67.56 yuan respectively. Maintain the company's "buy-A" proposal.
Risk tips: food safety problems; intensified competition in the industry; market-oriented reform is not as expected; liquor consumption tax rate has the possibility of reform.