Incidents:
In 2012, the company achieved operating income of 619 million yuan, an increase of 15.26% over the previous year; operating profit was negative 15.1399 million yuan, a significant reduction in losses compared to 2011-262 million yuan; net profit of 139.338 million yuan, net profit attributable to owners of the parent company was 9.506 million yuan, equivalent to EPS 0.0123 yuan. The company turned a loss into a profit during the reporting period.
Comments:
Business Overview. The company's wine sales revenue was 397 million yuan, of which revenue from refined wine products increased by 28%. This stemmed from the company speeding up brand building, actively developing markets, improving management efficiency, strengthening cost control, adjusting the alcohol sales structure, and increasing gross margin. At the same time, the company has increased its asset disposal efforts and improved the efficiency of asset use.
Construction of a vineyard raw material base. The company has built high-quality gardens such as a single manyuan, a yield limit of 500 kg/mu, and a production limit of 800 kg/mu, which have significantly improved the quality of grapes. The raw materials of high-quality garden grapes have become an important foundation for the production of the company's high-end wine products, and it has also tested the production of high-quality wines with regional characteristics of Xinjiang. After the construction of the vineyard base is implemented, it is conducive to safeguarding the quality of the enterprise's products, and at the same time facilitating the adjustment of the product structure. Five years from now, the company's self-sufficiency rate for grape raw materials will be greatly increased from the current level.
Adjust the raw material purchase model to ensure product quality. In 2012, the company formulated a steady acquisition policy, which not only protected farmers' interests, but also guaranteed the quality of the company's raw materials. At the same time, the company's production capacity expansion was met through the acquisition of raw materials.
The experience center was completed to increase revenue. After the capital raised by the company was put into use last time, on the one hand, it paid off debts and improved the company's financial situation. On the other hand, it built and improved the sales network system, adjusted the marketing model, and increased sales capacity. Among them, the construction and operation of experience stores in the Xinjiang region increased revenue in the Xinjiang region by 51.01%. At the same time, the completion of the construction of the Experience Hall gave full play to the display and experience functions of the Experience Hall, nurtured consumers, expanded the customer base, and further increased sales.
Valuation and investment ratings.
We expect the 2013-2014 EPS to be 0.026/0.040 yuan. Considering the company's future performance growth expectations and industry conditions, we will give the company a “neutral” rating.
Risk warning: 1) food safety; 2) impact of imported alcohol.
