Maotai Wuliangyes anti epidemic selling of liquor

category:Finance
 Maotai Wuliangyes anti epidemic selling of liquor


The first quarter results of Luzhou Laojiao, Yanghe Co., Ltd. and Shanxi Fenjiu, the famous brand of Pan national liquor, were significantly less affected than expected.

Regional liquor companies are the worst hit areas of performance differentiation. The revenue and net profit of strong regional liquor companies such as gujinggong, Jinshiyuan and Shuijingfang were damaged in the first quarter, but the decline was relatively small, while the weak regional liquor companies such as Laobaigan, Yilite, Kouzijiao and shede liquor industry showed a large proportion of decline. In 2019, the situation of golden seed liquor and highland barley liquor, the weak liquor brands that have been left behind, is even worse.

Guizhou Maotai, Wuliangye counter trend growth

The 53 degree Feitian Guizhou Maotai liquor is the value benchmark product of domestic liquor at present, followed by Wuliangye as the leading enterprise of Luzhou flavor liquor.

In the epidemic situation, the price of Maotai and Wuliangye has declined to a certain extent. At the end of February and the beginning of March, the price of 500ml 53 degree Feitian Moutai in China has gone down from 2500 yuan / bottle to about 2000 yuan / bottle, and the price of classic 52 degree Wuliangye has also dropped to below 900 yuan / bottle, but they are rigid products for business and high-end consumption. Therefore, with the improvement of the epidemic situation in China, the price of both is increasing Sales and market prices are recovering rapidly.

In terms of data, Maotais revenue in the first quarter was 24.405 billion yuan, up 12.76% year on year, net profit was 13.094 billion yuan, up 16.69% year on year, and share price rose 5.53% from January 23 to March 31. Wuliangye outperformed Maotai in terms of revenue and net profit growth. In the first quarter, its revenue was 20.24 billion yuan, up 15.1% year-on-year, and its net profit was 7.7 billion yuan, up about 19% year-on-year. However, its share price performance fell 8.69% from January 23 to March 31.

Pan national brands are more resistant to decline

As an old famous liquor enterprise, Luzhou Laojiao, Yanghe Co., Ltd. and Shanxi Fenjiu all belong to the pan national famous liquor brands, which have brand advantages in the market, as well as the support of the base market. Therefore, in the epidemic, although the first quarter market sales of the above-mentioned liquor enterprises declined to varying degrees, they still showed strong resistance to decline, and the data was better than the market expectation.

Among them, since 2019, Yanghe stock has entered the period of active strategic adjustment to repair the previous channel problems, so its revenue and net profit have declined in single digits in 2019. Although the revenue of Yanghe stock fell by 14.9% to 9.268 billion yuan in the first quarter, the net profit reached 4.002 billion yuan, only decreased by 0.46%; while the net profit of Shanxi Fenjiu and Luzhou Laojiao increased by 39.36% and 12.72% respectively.

However, the first quarter is also the peak season for liquor sales. Before the outbreak, all liquor companies had completed sales, especially the above-mentioned liquor companies, which are also hot brands pursued by dealers. Therefore, it is necessary to refer to the situation in the second quarter for whether to resist or not.

It is worth mentioning that Shunxin agriculture is also one of the less affected liquor companies in this round, and its revenue increased in the first quarter 15.93% But in fact, this growth is related to the growth of its meat products business, not to liquor.

Data shows that the revenue of Niulanshan, a liquor business of Shunxin agriculture, is basically the same, and the net interest rate is down 2.5 percentage points, but this performance has been better than most of the liquor listed companies. In terms of the share price, Shunxin agricultures share price is up 17.16% from January 23 to March 31.

As a representative enterprise of middle and low-end folk liquor, Niulanshan brand under Shunxin agriculture has benefited from the upgrading of product structure and nationwide expansion, and the overall liquor business income has exceeded 10 billion. At present, 22 provinces in China have sold over 100 million yuan, and 5 regional markets have exceeded 500 million yuan. According to the Research Report of national financial certificate, it is expected that with the gradual recovery of catering in the second quarter, the demand for middle and low-end liquor will take the lead Warm, Niulan mountain is expected to benefit from it.

Some regional liquor companies are on the verge of falling behind

According to the first quarter report in 2020, under the impact of the epidemic, the revenue and net profit of several weak regional liquor enterprises have declined significantly. For example, the revenue of Laobaigan declined by 34.2% in the first quarter, and the net profit declined by 44.05%; the revenue of shede liquor industry declined by 42% in the first quarter, and the net profit declined by 73.5%. Although the above-mentioned liquor companies do not pay attention to brand and market investment, but also invest a lot, but not enough to make up for the lack of their own brand. The recent stock price of the above-mentioned liquor enterprises also fell by about 20%. From January 23 to March 31, Kouzijiao fell by 18.9%, Laobaigan wine fell by 20.78%, and shede wine industry fell by 23.21%. In the view of the industry, the new round of liquor competition has been the competition of the comprehensive strength of enterprises, and the epidemic situation will accelerate the market differentiation, especially at present, the domestic liquor consumption market is recovering weakly, the liquor enterprises with strong brand power will occupy more advantages, and the liquor enterprises in the weak regions will face greater pressure. Source: editor in charge of the first financial network: Chen Hequn, nb12679

According to the first quarter report in 2020, under the impact of the epidemic, the revenue and net profit of several weak regional liquor enterprises have declined significantly. For example, the revenue of Laobaigan declined by 34.2% in the first quarter, and the net profit declined by 44.05%; the revenue of shede liquor industry declined by 42% in the first quarter, and the net profit declined by 73.5%.

Although the above-mentioned liquor companies do not pay attention to brand and market investment, but also invest a lot, but not enough to make up for the lack of their own brand.

The recent stock price of the above-mentioned liquor enterprises also fell by about 20%. From January 23 to March 31, Kouzijiao fell by 18.9%, Laobaigan wine fell by 20.78%, and shede wine industry fell by 23.21%.

In the view of the industry, the new round of liquor competition has been the competition of the comprehensive strength of enterprises, and the epidemic situation will accelerate the market differentiation, especially at present, the domestic liquor consumption market is recovering weakly, the liquor enterprises with strong brand power will occupy more advantages, and the liquor enterprises in the weak regions will face greater pressure.