Welcome Driving Tribute Wine (603198): Dongcang maintains high growth profitability and continues to improve

Welcome Driving Tribute Wine (603198): Dongcang maintains high growth profitability and continues to improve
The company disclosed the first quarterly report of its annual report. The high-end cave collection series maintained a high growth, the product structure continued to be optimized, the 19Q1 performance slightly exceeded market expectations, the net profit rate reached a record high, and the start was good, which is a solid value-added foundation.Looking forward to the future, the trend of “upgrading + concentration” in the province remains unchanged. The company, as a well-known liquor brand in the province, will continue to benefit from its high-end positioning in advance, but its product upgrade space and growth rate will still be weaker than Gujingkouzi in the short term.It is expected that the company will increase brand investment, continue to cultivate consumers, and further increase market share.Gives 19-20 years EPS 1.05 and 1.11. Considering that the competitive products in the province are more powerful, the company estimates that there is limited room for further improvement. It is given 18 times in 19 years, and the target price is 19 yuan. It is temporarily provisioned with a “careful recommendation-A” rating. The 18-year report was in line with expectations, and the return and cash flow indicators were healthy, and continued to maintain high dividends.The company’s 18-year revenue was 34.8.9 billion, +11 a year.17%, net profit attributable to mother 7.7.9 billion, previously +16.81%.Q4 single quarter revenue 10.5.2 billion, ten years +10.23%, net profit attributable to mother 2.8.1 billion, up from +17.47%.The company’s 18-year gross profit margin was 60.92%, ten years +0.28pct, mainly due to product structure upgrade, grassroots analysis and feedback, 18 years of high-end cave collection continued high growth, accounting for more than 15%, Venus and Silver Star accounted for 35-40%, of which Venus grew fasterThe product structure is continuously upgraded.The 18-year sales expense ratio decreased by -0.03pct, mainly due to the high increase in revenue caused by the expense ratio dilution, of which advertising costs increased by 8.8%, the company’s brand promotion investment increased, management expense ratio (including research and development) 5.1%, ten years +0.12pct, mainly due to the increase in ecological liquor research and development projects.Advance payment at the 深圳夜生活 end of 18 years 4.8.3 billion per year + 1%, cash back 39.5.0 billion, previously +15.3%, operating net cash flow 8.9.2 billion, previously +31.1%, the cash back and cash flow indicators are healthy.The company plans to pay 7 yuan (including tax) for every 10 shares with a dividend rate of 71.92%, continued to maintain high dividends. The performance of 19Q1 slightly exceeded market expectations. Structural upgrades pushed up gross margins, and falling tax rates pushed net interest rates to a record high.The company’s 19Q1 revenue was 11.600 million, previously +2.7%, net profit attributable to mother 3.5.3 billion, previously +9.02%, the performance slightly exceeded market expectations.1Q1 gross profit margin 67.2%, ten years +1.8 points, mainly due to product structure upgrade, 19Q1 high-end liquor sales increased by +7.4%, ordinary liquor income for six months -6.5%.1Q1 sales expense ratio increased by 0.36%, mainly due to the increase in market investment, the management expense ratio (including research and development) increased by 0.4%, taxes and surcharges fell by -1.75%, the gross profit margin increased and the supplementary tax rate decreased, pushing up the net interest rate by 1.8 points to 30.5%, a record high.1Q1 advance payment 2.8.7 billion, before -5.63%, down 1 from the previous month.9.6 billion, mainly due to the confirmation of the first quarter shipments of advance receipts in the fourth quarter.19Q1 cash back 10.1.5 billion, at least -2.22%, operating net cash flow -1.6.7 billion, a year-on-year decrease of 1.6.9 billion, mainly due to the decrease in government subsidy income. The base camp in the province continues to cultivate, and the provinces focus on the core markets of Jiangsu and Shanghai.In terms of regions, the province’s income for the 18 years was +10 per year.1%, accounting for 60.6%, extra-provincial income for ten years +12.6%, accounting for 39.4%.The company’s base camp in the province continues to cultivate, and high-end cave collections are also mainly promoted in the province. The province is still the main source of income and profits; companies outside the province focus on Jiangsu, Shanghai and other surrounding markets. Jiangsu and Shanghai are the main labor migration in Anhui.In the region, the company began to lay out in 1998, and cultivated a series of loyal and loyal consumer groups. The products are mainly low-end, and the layout of high-end cave series has been increased.By the end of 18, the company’s dealers in and out of the province have increased by 79/102, mainly distributors of the cave collection series. The company’s layout of cave collection has increased significantly and is expected to be gradually realized in the future. It is expected that the company will continue to increase its brand investment, seize the opportunity of consumption upgrade in the province, and further increase its market share.Anhui Liquor has continued to upgrade to a price band of more than 200 yuan. Benefiting from this, the company’s merged cave collection series has grown rapidly and its product structure has also been upgraded significantly.But compared with Gujing and Kouzi warehouses, the brand strength of Yingjia is relatively weak, and the market share in the price band of more than one hundred yuan is also acceptable.In the context of accelerating the concentration of consumption in the province to brand enterprises, the company is expected to continue to increase brand and channel expansion, further enhance the brand power of the Dongzang series, and at the same time continue to cultivate consumers, lead resources to core consumers, and focus on core terminals.Increase market share. The performance has grown steadily, and the upgrade space and growth rate are still weaker than Gujingkouzi. The first coverage is temporarily given a “prudent recommendation-A” rating.The trend of “upgrading + concentration” in Anhui Province will not change. As a well-known liquor brand in the province and the mid- to high-end cards are positioned ahead of schedule, the company will continue to benefit, but the product upgrade space and growth rate are still weaker than Gujingkouzi in the short term.It is expected that the company will increase brand investment, continue to cultivate consumers, and further increase market share.Gives 19-20 years EPS 1.05 and 1.11. Considering that the competitive products in the province are more powerful, the company estimates that there is limited room for further improvement. It is given 18 times in 19 years, and the target price is 19 yuan. It is temporarily provisioned with a “careful recommendation-A” rating. Risk reminder: demand falls, competition in the province is intensified, and development outside the province is less than expected

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