Moutai, Guizhou (600519): The Model of Value Does Not Change

Moutai, Guizhou (600519): The Model of Value Does Not Change
The main points of the 重庆耍耍网 report are the events described in Guizhou Moutai’s annual report for 2018: roughly 771 total operating income.99 ppm, an increase of 26 in ten years.43%, net profit attributable to mother 352.40,000 yuan, an increase of 30% in ten years; of which total operating income of Q4 was 222.30 ppm, an increase of 34 per year.12%, net profit attributable to mother 104.70 ppm, an increase of 47 per year.56%. Event comment: The volume and price of Moutai liquor are rising at a rapid rate, and the increase in series of wine prices has gradually become a new growth pole: the company achieved Moutai wine sales in 20183.25 for the first time, growing by 7 per year.48%, realized sales income of 654.870,000 yuan, an increase of 24 in ten years.99%, of which the leading product Feitian Maotai raised the price by about 18% at the end of 17th, which 夜来香体验网 has a conductive contribution to income elasticity.It is expected that through the continuous upgrade of the product structure of Moutai liquor and the increase in the proportion of direct sales, the average price of Moutai liquor can still increase space.Series of wine sales in 2018 2.98 for the first time, at least slightly down to 0.43%, realized sales income of 80.770,000 yuan, benefiting from the contribution of price increases and structural upgrades, an annual increase of 39.88%.The increase in revenue of Moutai series of wines achieved without a gradual increase last year. This year, we will adhere to the four major projects of “building a network, grasping display, engaging in tasting, and branding”, and continue to enter the 10 billion club without increasing the increase. Net operating cash flow increased, and advance accounts increased year by year: the actual net cash flow from operating activities was 413.850,000 yuan, a sharp increase of 86.81%, mainly benefited from the increase in sales and average prices.Advance receipts increased for two consecutive quarters, and advance receipts reached 135 in the fourth quarter.7.7 billion, an increase of 24 from the previous month.09 million yuan, mainly due to dealers in advance payment. Benefiting from price increases and structural upgrades, gross profit margin improved and profits grew faster than revenue growth: Benefiting from price increases and structural upgrades, the company’s overall gross profit margin reached 91.6%, increase by 1 every year.28pct; long-term cost rate 10.3%, a decline of 2 per year.27pct, in which the sales expense ratio, management expenses (including research and development expenses) ratio, and financial expense ratio were changed by -1.56 points, -0.8 pcs, 0 pcs, 09 pct, the sales tax and the proportion of the additional rose by 0.86 points to 14.6%.The company’s net profit attributable to its mother reached 352.40,000 yuan, an increase of 30% in ten years, profit growth faster than income growth, net interest rate reached 45.60%, increase by 1 every year.25 points. The branding trend has not changed, and we continue to be optimistic about the steady growth of Moutai’s performance.We believe that the future growth of the liquor industry will be driven by consumption upgrades and increased concentration. Branding is still the main theme. As an absolute leader in the industry, Moutai is also the biggest beneficiary of brand dividends, and its long-term steady growth can be expected.We expect the EPS for 2019/2020 to be 33.$ 02/39.31 yuan, corresponding to PE is 24 times / 21 times, maintaining the “buy” level. Risk Warning: 1. The volume of direct sales channels was less than expected; 2. Liquor consumption tax adjustment and other policy risks.