The factory price of the Eighth Generation Pu 5 increased by 50 yuan. The recommended retail price has not been adjusted at this time. On January 30, according to reports from the wine industry, since February 5, the price of the eighth-generation Wuliangye has increased by 50 yuan/bottle, and the factory price has risen to 1,019 yuan/bottle, an increase of about 5%.
The recommended retail price has not been adjusted at this time and is still 1,499 yuan.
The 12/18 conference suggests that 2024 will focus on enhancing Wuliangye's brand value. At the 2023/12/18 conference, Wuliangye also maintained a sincere communication attitude. Wuliangye shared Wuliangye's 2024 work plan with the participants, responding to current topics that the industry and dealers are most concerned about. Zeng Congqin, party committee secretary and chairman of Wuliangye Group (Co., Ltd.), said at the meeting that the 2024 marketing work policy should “focus on improving Wuliangye's brand value, continue to strengthen quality brands, consumer cultivation, and channel profits to accelerate the return of prices to a reasonable return to brand value.”
The relationship between volume and price will be improved in 2024, which indicates that prices will be reduced and raised to increase channel profits. Regarding the 2024 marketing policy, Chairman Zeng Congqin pointed out that every effort should be made to promote quality brand building, make every effort to promote consumer cultivation, expand breadth, strengthen depth, and improve accuracy; make every effort to increase channel profits through product-oriented market operation, development of differentiated products and cultural wines, exploration of the value of old wine, and marketing process assessment and incentives. Chairman Zeng also said that he will take the opportunity to moderately adjust the factory price of the 8th generation Wuliangye, and at the same time reduce the sales volume of the traditional channels of the 8th generation Wuliangye as appropriate, so as to increase channel profits.
Price increases have boosted performance, and it is expected that subsequent batch prices will gradually rise. Wuliangye introduced a price increase plan more than a month after announcing the price increase, which showed the determination and strong execution of its strategic decisions. Wuliangye's price increase in this round is the first price increase in nearly two years. Referring to Maotai's price increase in November, there was no significant increase in the final batch price, but Wuliangye is different from Maotai. There is not a big gap between Wuliangye's factory price and market price, and the channel does not have large profits to absorb the price increase, so we expect this price increase will bring a certain increase to the price of the eighth-generation Wuliangye. We believe that in addition to increasing performance, Wuliangye's current price increase is also of great strategic importance, and has a positive impact on Wuliangye's own rapid development. At the same time, as the second-largest brand in the liquor industry, Wuliangye's current price increase is expected to boost the price market, open up the price ceiling for liquor companies with product layouts in the price range of 1,000 yuan or less, and play a leading role in the industry. We believe that Wuliangye's brand power and brand height are at the forefront of the industry. As the industry enters the era of deceptive storage, leading brands are expected to enjoy the dividends of more concentrated shares. Brand power and share form a positive cycle, and the company's certainty of maintaining steady growth is further strengthened. It is expected to achieve operating income of 826.84/936.51/105.952 billion yuan in 2023-2025, achieving net profit of 303.78/342.41/38.808 billion yuan. The current stock price corresponds to PE of 16x/14x/13x to maintain the “purchase” ” Ratings.
Risk warning: Consumption tax reform, prices continue to decline, economic recovery falls short of expectations