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This World Destiny (603369): Steady progress without fear of the epidemic

This World Destiny (603369): Steady progress without fear of the epidemic

The company completed a 30% + rebate before the Spring Festival. The sales before the holiday were good and the inventory was benign.

The outbreak responded quickly and actively. The main measures were to optimize expenses, adjust the pace of departure, adjust dealers’ inventory and funding pressure, and assist dealers to remove inventory and stabilize prices, etc., to stabilize channel confidence in a timely manner, maintain market size, and respond toThe speed is at the forefront of the industry, and it is expected that the impact of the epidemic will be relatively small.

The company is still in the period of channel potential energy release, and the revenue target is still expected to be achieved.

Taking into account the epidemic situation, the company increased its support for dealers and terminals, the cost increase will increase, and the EPS 1 for 20-21 will be slightly reduced.

37, 1.

61 yuan (1 last time.

40, 1.

64 yuan), currently only 21 for 20 years.

7X, a higher margin of safety, given 25X in 21 years, a target price of 40 yuan a year, maintaining the “strongly recommended -A” level.

30% + of repayment before the Spring Festival, good sales before the holiday, benign inventory.

According to grassroots analysis and feedback, before the Spring Festival, the channel was active in payment, and the company completed 30% + of vertical payment, and 35-40% in Nanjing, a key market, which performed well.

Before the holiday, the terminal throughput increased by about 20-25%, and the sales were good. Benefiting from the suspension of the Yanghe Dream 6, the national border opened in late January, including K3, K5, and even some V3 were out of stock.

In terms of inventory, dealer inventory is generally within 2 months, and the key market is Nanjing 1-1.

5 months, smoke hotel about 1 month, the overall inventory is benign.

Respond quickly, actively respond to the epidemic, and have not adjusted the target income target for the time being.

The company’s continuous meetings from the beginning of the second day of the year fully mobilized the deployment of epidemic prevention and control work, and organized a special meeting of the sales manager level to assess the possible impact of the epidemic on the market and support dealers to tide over the difficulties. The focus includes: 1) Optimizing the plan.

The marketing plan for the regional market can be suspended, postponed or adjusted to stabilize the price system, expand consumption scenarios, and promote terminal sales. 2) Maintain a constant force.

The company’s large-scale sales organization shall not increase the pressure on the indicators of dealers and terminals, and shall not pursue short-term sales by means of transferring inventory and reducing prices; 3) Simplify the process.

For the receivable expenses incurred by the dealers in the plan, by simplifying the procedures, they can be registered and reported in advance to reduce expenses; 4) Reduce costs.

For qualified dealers, a certain amount of product transfers can be given, and for product transfers in terms of agreements, deferred repayment can be given to help dealers reduce capital costs to the greatest extent.

The company has not adjusted its current target. The measures for the epidemic are mainly to optimize expenses, adjust the distribution rhythm, adjust dealers’ inventory and capital pressure, and assist dealers to destock and stabilize prices. We believe that the company responded quickly and took effective measures.In time, channel confidence was stabilized, market order was maintained, and the response speed was at the forefront of the industry. It is expected that the impact of the epidemic will be relatively small, and the resilience after the epidemic is over.

The impact of the epidemic is limited, and the company is still in the period of channel potential energy release, and the growing certainty is still high.

We believe that the impact of the epidemic on the liquor industry and the company is short-lived. Coupled with the timely response of the company, the impact is expected to be relatively small. The company is still trying to maintain high growth gradually: 1) The channel is in a positive cycle and the growth inertiaStill there.

The company has experienced many years of cultivation in the Nanjing market and high growth in recent years. The transformation of national consumption has been formed. Although the channel profit has slightly decreased compared to the previous period, it still clearly exceeds the competition. The adjustment of the competition channel still takes time. The companyComparative advantage is still there.

In addition, Yanghe upgraded the Dream 6+, and the out-of-stock Dream 6,500 price band was vacated, but instead gave the national margin Sikai a better opportunity to replace the price band. The sales before the Spring Festival were good or even out of stock.The year will still maintain a high growth rate.

2) Looking into the future, after several years of high growth and increasing base in the Nanjing market, the acceleration of future growth is logical. The company is well prepared in advance: First, it will lay out higher-end V series in advance.As a supplement to national border products; second, regionally, the province will further increase the market layout of southern Jiangsu and central Jiangsu, continue to expand the number of dealers, increase resource replenishment and channel construction. Nanjing is expected to become the main force for growth in the future.

Outside the province, the strategy of “Comprehensive Planning, Key Breakthroughs, Peripheral Radiation, and Echelon Development” has been followed, and the target is to double income over the 19 years in 20 years.

Investment suggestion: The long-term growth certainty is still high, the current allocation value is prominent, and the “strongly recommended-A” level is maintained.

The company sold well before the holiday, reduced its inventory level, responded quickly to the epidemic situation, actively responded, and obtained first opportunities. It is expected that the company will still be in the period of channel potential energy release, and the revenue target is still expected to be completed.

Considering the epidemic situation, the company will increase its support for dealers and terminals, and the expenses will be increased, and the EPS 1 for 20-21 will be slightly reduced.

深圳桑拿网
37, 1.

61 yuan (1 last time.

40, 1.

64 yuan), currently only 21 for 20 years.

7X, a higher margin of safety, given 25X in 21 years, a target price of 40 yuan a year, maintaining the “strongly recommended -A” level.

Risk warning: demand falls, competition in the province increases, and expansion outside the province is less than expected.