Shanxi Fenjiu (600809) Interim Review: Grasping the Two Ends Follows the Trend and Promotes the Tension of the Fenjiu Brand for the High Outside the Province

Shanxi Fenjiu (600809) Interim Review: “Grasping the Two Ends” Follows the Trend and Promotes the Tension of the Fenjiu Brand for the High Outside the Province

The performance growth was slightly higher than expected, and it was raised to a “strongly recommended” rating company announced the 2019 interim report, with 63H1 revenue of 63.

7.7 billion / + 22.

30%; net profit attributable to mother 11.

90ppm / + 26.

28%, a record high in revenue and net profit since listing.

2019Q2 revenue 23.

20 ppm / + 26.

30%; net profit attributable to mother 3.

1.3 billion / + 37.


In the first half of the year, the company received advance accounts14.

81 ppm / 81%, income plus advance receipts 78.

5.8 billion / + 34%.

What do we expect the company 2019?
Realize net profit attributable to mothers in 2021.



570,000 yuan, an increase of 29 in ten years.

4% / 23.

6% / 21.

8%, corresponding to EPS of 2.



28 yuan.

Currently sustainable corresponding to 2019?
The PE in 2021 is 32.



8 times.

The state reform has promoted the improvement of the mechanism, the sales outside the province exceeded the province, highlighting the tension of the Fen liquor brand, “grasping the middle of the two ends” blue and white, Bengfen increased, optimistic about the company’s “two ends” market growth space, raised to “strong recommendation”.
“Grasping the middle of the two heads” took advantage of the trend. Looking at the two engines of Binghua and Bfen, the revenue of Fenjiu was 56.

3.4 billion, accounting for 89.

21%; series wine achieved revenue 4.

810,000 yuan, accounting for 7.

62%; blended wine achieves revenue 2.

10,000 yuan, accounting for 3.


After the integration of company resources, the positioning of the three major brands of “Fen”, “Xinghua Village” and “Bamboo Leaf Green” has gradually become clear, focusing on cleaning up the Fen brand wine bar codes, adhering to the coordinated development of “one excellent and three strong”, focusing on “grasping the middle of the two belts”, with blue and whiteFen liquor occupies second-to-high-end prices, insists on deepening the channels in advantageous regions, and cultivates the taste of “fragrant fragrance” with the rapid spread of Bfen, which caters to the trend of upgrading the mainstream consumer price of wine bottles (about 45 yuan); we expect the growth rate of blue and white fen liquor in 2019Keeping 南宁桑拿 it above 20%, contributing about 25%, the growth rate of Bfen or over 50%, contributing more than 30%.
“Crossing the Yangtze River and fighting East China”, the growth rate outside the province is faster than that in the province. Generally, the nationalized picture scroll has stretched to achieve revenue in the province’s market in 2019H131.

4.9 billion, accounting for 49.
86%, the same increase of 9.

69%; revenue outside the province 31.

6.7 billion, accounting for 50.

14%, an increase of 48.


The growth rate outside the province is significantly faster in the provincial market, and the regional sales structure has improved significantly.

The company implements the “13313” regional market strategy, that is, a base market (Shanxi), three major sectors (Beijing-Tianjin-Hebei, Yulu, Shaanxi-Mongolia), three small market sectors (East China, Two Lakes, Southeast), 13 opportunistic provincesIn foreign markets, the cultivation of consumers in key sectors and deep cultivation of channels continue, and it is expected that the revenue growth rate is expected to maintain more than 30%.

The gross profit margin increased, and the expense ratio increased slightly. The company achieved a gross profit margin of 71H in 2019H1.

46%, the same increase of 1.

81 points; realized net profit margin 19.

84%, down by 0.

19 points.

The cost rate during the period was 27.

34%, an increase of 4 per year.

55 points.

Selling / administrative expense ratios were 21 respectively.

57% / 5.

21%, up 3 from the previous.

58 / rose 0.

33 points.

The increase in the selling expense ratio was due to the increase in the market expansion outside the province and the increase in preliminary expenses.

Net operating cash flow of the company in the first half of the year 16.

910,000 yuan, mainly due to the increase in sales income in the current period, increased bill discount.

Risk reminders: Macroeconomic fluctuations reduce consumer demand; intensified competition causes rapid expansion of expenses or unexpected regional expansion; food safety risks.