Chongqing Beer (600132) 2018 Annual Report Review: Product Structure Upgrades, Continuous Profitability, Continuous Repair

Chongqing Beer (600132) 2018 Annual Report Review: Product Structure Upgrades, Continuous Profitability, Continuous Repair

Chongqing Beer (600132) 2018 Annual Report Review: Product Structure Upgrades, Continuous Profitability, Continuous Repair
I. Overview of the event Chongqing Brewery released the 2018 annual report, and the company achieved total operating revenue of 34 in 2018.67 ppm, a ten-year increase of 9.16%.Realize net profit attributable to shareholders of listed companies.40,0苏州桑拿网00 yuan, an increase of 22 in ten years.80%.Proposed cash dividend of RMB 0.80 yuan (including tax).  Second, analysis and judgment The growth rate of single-quarter performance in 18Q4 increased, and it is expected that the revenue will resume growth.67 ppm, a ten-year increase of 9.16%, equivalent to Q4 single quarter operating income5.44 trillion, ten years +11.26%, an increase from the previous quarter of 2018Q3.Initial realization of net profit attributable to listed companies4.40,000 yuan, an increase of 22 in ten years.80%, equivalent to Q4 single quarter net profit attributable to listed companies 0.19 trillion, +44 a year.15%, Q2 to Q3 growth rate increased significantly.Overall, Chongqing Beer’s 2018 operating income has reversed the trend of inverse growth since 2016, and the progress of conversion and closure of the plant has temporarily been reported. The company’s return to net profit growth rate has also fallen back in 16/17.In 2019, the company plans to achieve 95 beer production and sales.0 million kiloliters (+0.6%) and realized net income after tax of 32.5 billion (-6.3%), the completion is expected to be less difficult. The total sales volume has increased for the first time in 5 years, and the product structure upgrade trend has intensified. The company has achieved 94 beer sales in 18 years.430,000 kiloliters, an increase of 6 in ten years.4%, to stop the decline in sales for 5 consecutive years since 2013.In terms of segmentation, the sales of high-end products represented by Carlsberg series, Lebao Chunsheng, and Chongqing Chunsheng reached 9.430,000 kiloliters, previously +4.92%, accounting for 9%.99%, 10 before 2017.13% slightly venous 0.14 points; sales of mid-range products represented by Lebao and Chongqing Guobin series reached 67.440,000 kiloliters, previously +9.62%, accounting for 71.42%, 69 before 2017.32 improved by 2.10 points; sales of low-end products represented by Chongqing 33 and Shancheng series (excluding Shancheng 1958) were 17.560 thousand kiloliters, previously -3.77%, accounting for 18.60%, 20 before 2017.56% level 1.97 points.In general, the company’s products show a rising trend in the proportion of mid-to-high-end products, indicating that the company is implementing the strategy of promoting high-end products and strengthening the product combination of “local strong brands + international high-end brands” in an orderly manner.The listing of mid-to-high-end alcoholic guests and the continuous increase in the coverage of high-end tinned products in non-direct drinking channels, the company’s product structure upgrade trend will intensify. Profit margin: Price increase and supplementary structural upgrades help increase gross profit margin, and the three-factor resonance promotes a significant increase in net profit margin: In 2018, benefited from the company’s direct price increase on products (in February 2018, the relatively high-end bottled raw products in the core market(The factory price of products and low-end canned products is raised at a range of about 5%) and the continuous promotion of product structure upgrades. Against the background of the continuous rise in the cost of packaging materials such as aluminum alloy and glass, the company’s gross profit level has risen without falling,The company’s gross profit margin in 2018 reached 39.93%, an increase of 0 from 2017.59 single; net profit margin: thanks to the increase in gross profit margin, the period’s cost release efficiency has significantly improved (costs and expenses during the period of 201818.09%, the year before 2017 is significantly reduced by 2.For each 19 shares, the selling / management / financial expense ratio was reduced by 1.52/0.46/0.21, of which the increase in sales expense ratio mainly benefited from the advertising promotion fee interval -25.24%, the reduction in management expense ratio mainly benefited from the suspension of production costs for ten years.35%, the reduction in financial expense ratio mainly benefits from the interest income of +630 per year.37%) and increased non-current asset disposal income (income ratio increased by 1.39 units), the company’s 2018 net profit margin reached 11.65%, a significant improvement over 2017.28 units, a new high since 2010. In partnership with Carlsberg, the company can expect that in 2013, Chongqing Beer will become a member of the Carlsberg Group. According to Carlsberg’s commitment to avoid potential peer competition at that time, Carlsberg will be a domestic beer with potential competition with Chongqing Beer by December 2020Assets and business injected into Chongqing Beer.Carlsberg has developed well in Yunnan, Xinjiang, Tibet, Ningxia, Qinghai and other places, and its profitability is stronger than Chongqing Beer. Therefore, in the future, Carlsberg and the company will realize a strong alliance. The company’s profitability and market share are expected to further increase.  Third, investment advice Regardless of the expected injection of Carlsberg’s assets, the company is expected to achieve operating income of 37 in 19-21.23 ppm / 40.3.5 billion / 43.41 trillion, ten years +7.4% / 8.4% / 7.6%; net profit attributable to listed companies is 4.9.2 billion / 5.8.1 billion / 6.67 trillion, ten years +21.9% / 18.0% / 14.8%, equivalent to 1.02 yuan / 1.20 yuan / 1.38 yuan, corresponding to PE is 35X / 29X / 26X.The overall beer sector is currently evaluated at 47.76 times, the company is estimated to be lower than the industry. Considering the upgrade of product structure and the increase of costs during the period of cost growth, in order to improve the combination with the strong and strong Carlsberg, it is expected that the company’s performance growth rate will be faster than the industry average in the future, and it is estimated that the potential for increased decline will increase.In summary, for the first time, it is given a “recommended” rating.  4. Risk warning: product growth risk, new product promotion is less than expected, food safety risk, etc.