Shuijingfang (600779): The performance exceeds expectations and the advantage is still prominent

Shuijingfang (600779): The performance exceeds expectations and the advantage is still prominent

This report reads: The third-quarter performance exceeded expectations, and the Shuijingfang series maintained rapid and stable growth.

The overall performance of the second high-end is differentiated, but the company maintains stable and rapid growth. Management, brand, and channel dividends continue to be released, and its competitive advantage is prominent.

Investment Highlights: Investment Suggestion: Increase EPS to 1 in 2019-21.

59, 1.

98, 2.

34 yuan (1 last time).

51, 1.

85, 2.

22 yuan) forecast, with reference to comparable companies to give 28 times PE in 2020, maintain a target price of 55 yuan, maintain the overweight level.

Performance exceeded expectations.

Revenue in the first three quarters of 2019 was 26.

500 million, 23.

9%, net profit before and after returning to mother 6.

39, 6.

180,000 yuan, an increase of 38.

1%, an increase of 25.

99%; Q3 single-quarter revenue 9.

600 million, 19.

7%; net profit attributable to the mother before and after deduction 3,2.

79 trillion, an increase of 53.

4%, an increase of 42.

6%.

Q3 single-quarter net profit rose by 6.

85pct to 31.

2%, of which the gross profit margin rose slightly.

At 72pct, there was a potential budget expenditure in the second quarter and the sales expense ratio in the third quarter dropped significantly5.

84 pct, management and R & D rate downgraded by 1.

73pct, sales tax rate rose by 2.

03pct.

The Shuijingfang series maintained rapid and steady growth.
1) Q3 single season alcohol revenue 9.

6 trillion, an increase of 20.

3%, the slower growth rate was mainly due to the impact of Q2 loose wine sales, and the gross profit margin rose by 0.

2pct; of which Shuijingfang revenue is 9.

3.6 billion, an increase of 19.

2%, 四川耍耍网 the growth rate decreased by 3 MoM.

3pct but maintained rapid growth, gross profit margin rose 0.

4pct.
Tianhao Chen and other series of wine reached 24.65 million, an increase of 85.

1%, the growth rate increased significantly, gross profit margin improved significantly, appreciation.

4pct.
2) The eastern, western, central, and northern regions of the mass resistance increased by 14.

1%, 23.

7%, 1.

3%, 32.

2%, the eastern and northern regions maintained rapid growth, the western region recovered somewhat, and the core markets outside the central region still maintained good and stable growth.

The plate is differentiated, but the advantages are prominent.

The performance of the sub-high-end market is differentiated, but the company maintains stable and rapid growth. The company’s management, brand and channel dividends are expected to continue to be released, and its competitive advantages are prominent. It has long been optimistic about the company’s growth space as a sub-high-end leader.

Core risks: Decline in premium wine prices, increased industry competition, and food safety