Shanxi Fenjiu (600809) Interim Review: Reforms Continue to Advance Performance and Accelerate Growth


Shanxi Fenjiu (600809) Interim Review: Reforms Continue to Advance Performance and Accelerate Growth

Event Shanxi Fenjiu released the 2019H1 Interim Report, which achieved operating income of 63H1 in 2019H1.

77 trillion, ten years +22.

30%; net profit attributable to mother 11.

90 trillion, ten years +26.


2019Q2 achieved operating income23.

200,000 yuan, +26 a year.

3%; net profit attributable to mother 3.

13 trillion, +37 a year.


The investment performance of the main points of investment was in line with expectations, and the growth rate increased month-on-month.

Due to the report merger, the company acquired Shanxi Xinghuacun Yiquanchong Wine Co., Ltd. and some of the group’s assets, and its subsidiary Shanxi Xinghuacun Fen brand liquor marketing company acquired 51% equity of Baoquanchong Group. The company retrospectively reviewed the consolidated statements. After adjustmentsIn the first half of the year, the growth rate of income / attributable net profit was 22 respectively.

3% / 26.

28%, in line with expectations.

In the second quarter, the growth rate of net profit attributable to mothers exceeded the growth rate of net income attributable to mothers in the first quarter / 6.


38 points, a significant increase from the previous quarter.

The advance payment for the first half of the year was 14.

810,000 yuan, an increase of 80 in ten years.

56% was due to the company’s channel reforms being effective, which solved the problem of price inversion and dealers’ intention to increase funds.

Net operating cash flow was 16.

91 ppm, which reversed last year’s negative operating cash flow. Even taking into account the changes in statistical caliber, it can be seen that the company’s cash flow capacity has been strongly improved.

The product maintained a high growth rate, and Bfen’s growth exceeded expectations.

In the first half of the year, the company’s Fenjiu, series liquor, and blended liquor revenues were 56.



0 trillion, in terms of products, the growth rate of the blue and white series / Laobaifen / Bophin is estimated to be approximately 20% / 20% / 50%-60% according to channel survey data, all maintaining the high growth rate last year.

In addition to the ultra-high growth rate brought by the outbreak in the Henan market last year, Bfen can still maintain a high growth rate of 50% -60% this year, verifying the continuous growth benefits brought by the strengthening of the brand power.

The company reduced 93 dealers in the first half of the year. It is understood that all the dealers of Fenjiu are normal. Due to the short-term operation of the Fen brand in the first half of the year, the company reorganized the Fen brand distribution system.Dealer.

The company’s ability to manage dealers has improved significantly in the last two years.

The gross profit margin has increased, and the introduction of expenses in the first half of the year has dragged down the net profit margin.

The gross profit margin for 2019H1 is 71.

46%, an increase of 1 each year in the 深圳桑拿网 same period last year.

81 points, mainly due to the improvement of product structure.

Selling expenses in the first half of the year 21.

57%, an increase of 3 from last year.

58 points; administrative costs 5.

06%, an increase of 18bp over the same period last year.The reason why the growth rate of sales expenses exceeded the growth rate of revenue was that the company developed the market in the first half of the year and concentrated the cost of investment, so the growth rate was faster.

Due to the significant increase in selling expenses, the net profit margin for the first half of the year was 19.

84%, a year-on-year decrease of 0.

2 per share, if the company controls expenses in the second half of the year, some of the expenses can return to normal.

The synergy effect of China Resources has gradually strengthened, and the Fen brand has revived.

According to our feedback, the China Resources Department has now settled in the company’s managerial level. The company has now entrusted the operation and management of Fen Brand to the China Resources Department.-In the three months of rectification, the existing dealer hierarchy and brand issues have been sorted out. Under the guidance of China Resources professional managers in channels and governance capabilities, the performance of Fen Brand in the second half of the year is worth looking forward to.

At the same time, the company is continuing to advance the reform plan of state-owned enterprises, the reform has entered the deep-water area, and the marketing company has taken the lead in pilot reform.

As a result of two years of hard work, brand power brings growth expectations.

After two years of channel reform, the company has basically solved two long-standing problems in the channel: the problem of price inversion and channeling.

In the first half of this year, the company continued to vigorously control the channeling of goods. At present, the problem of channeling around Shanxi has been greatly improved.

In addition, the company adopted a prudent follow-up sales policy in the first half of this year. In May, blue and white flowers raised their prices slightly, while controlling the pace of dispatch, and the prices went smoothly.

Considering that the company is the first of the four famous wines, the reform brings value return, and the company’s future growth is expected.

Earnings forecasts and investment recommendations maintain EPS forecasts for 2019-2021.

26, 2.

83, 3.

48 yuan, corresponding to the closing price on August 26, 2019, 2019 PE is 31x.

Maintain the level of “prudent overweight”.

Risks suggest that the macro economy is worse than expected, and the next high-end growth rate is short-term