Wuliangye (000858) 2019 Third Quarterly Report Review: Internal Goals Complete

Wuliangye (000858) 2019 Third Quarterly Report Review: Internal Goals Complete

Results and cash flow performance continued to be strong.

The company released the third quarter report of 2019 and realized operating income of 371.

0 trillion, with an increase of 26.

8%, net profit attributable to mother is 125.

400 million yuan, an increase of 32.

1%; single Q3 income 99.

500 million yuan, an increase of 27.

1%, net profit is 32.

100 million yuan, an increase of 34.

6%, solid performance, slightly higher than expected.

In the first three quarters, sales receipts also increased by as much as 60.

1%, net cash flow from operating activities was 161.

9 trillion, a three-fold increase over the same period, the cash flow performance continued to shine.

The preliminary release plan was completed ahead of time, and the combination boxing brought positive improvements.

Since the beginning of this year, the company has won high recognition for the combination of marketing channel reforms and the eight-generation Puwu makeup upgrade. Combined with the channel survey feedback, the eight-generation Wuliangye Q3 has been put in about 5,000 tons, and the first three quarters have been completed.

3 issuance plan, some dealers have added some payment.

Therefore, the company’s initial revenue of 500 billion yuan, and the goal of maintaining a growth rate of about 25% is successfully completed.

During the Mid-Autumn National Day, the company moderately expanded the scheduling rhythm and improved the approval price. However, based on the point-sweep system, the system was gradually completed and improved. Channel optimization, terminal planning, and market size management were adopted to achieve better channel and price control.Control, the current inventory level is reasonable, the approval price is still expected to rise steadily, the company’s target approval price will still reach 1,000 yuan.

  The company received advance payment 58 at the end of Q3.

600 million yuan, an increase of 140.

4%, the ring increased by 34.


The advance payment can be ground, the channel payment and stock preparation are expected to be positive, and the channel confidence is still in the period of improvement. This is a good foundation for the company to prepare for the Spring Festival payment.

  Cooperating with the eighth generation to increase marketing investment, the profit level remained outstanding.

The company’s gross profit margin in the first three quarters was 73.

8%, 0 per year.

3 points, mainly benefited from the increase in volume and price of Wuliangye’s core products and the slimming and cleanliness of a series of wine brands, with a single Q3 gross profit margin of 73.

8%, down by 1.

4pcts, it is presumed to be related to product structure and non-alcohol business quarter to quarter.

In terms of expense ratio, Q3 business tax and management expense ratio decreased by 4 respectively.

1 and 1.

5pcts, the sales expense ratio increased by 2.

2pcs to 14.

0%, mainly due to the eight-generation full listing, participating in brand marketing activities and the marketing system after the official launch of the terminal investment.

Net profit for the first three quarters was 35.

4%, the same increase of 1.

3pcts, we believe that the company ‘s brand strategy is clearer. Since the beginning, it has combed the product line and focused on the classic Wuliangye strategy.Expense rates are expected to remain stable and profitability is expected to increase steadily.

  Continue to seek the improvements brought about by the reforms to continue to deliver, and the stability of operations has improved significantly.In the construction of the company’s existing team led by Chairman Li Shuguang, it was proposed that since the second start-up, the company has gradually landed through drastic reforms, actively seeking changes, and seeing the emergence of shortcomings, reflecting good execution.

We continue to be optimistic that the improvement of company management will continue to materialize, driving the company to continue to improve in multiple dimensions such as brand remodeling, marketing transformation, and consumer cultivation.

Looking forward to next year, the traditional channel plan will not increase, and we will actively promote the development of incremental channels such as channel sinking and group purchase. The shipment volume plan is expected to continue to grow and maintain good operating stability.

  Core point of view: The company’s performance and cash flow performance remain strong, the shipment 杭州桑拿网 volume plan is finalized, and the gradual performance goal is completed. It is necessary to continue to improve management and operational rationality to bring about long-term business robustness.

We slightly adjust the company’s EPS forecast for 2019-2021 to 4.



65 yuan (previous forecast was 4).



54 yuan), the current corresponding PE is 29/23/20 times, maintaining a 12-month target price of 164.

6 yuan, corresponding to about 30 times PE next year, maintaining the “strong push” level.

Risk warning: Product demand is less than expected; channel reforms are not as effective as expected.