Jin Shiyuan (603369): Product power and brand power boost the company to take off

Jin Shiyuan (603369): Product power and brand power boost the company to take off

Product power and brand power mutually support each other, consolidating the foundation for the company’s development and continuous brand building. Today Shiyuan has gradually formed a national brand from distorted real estate wine, and consumer awareness has continued to increase.The image of “baijiu” is deeply rooted.

We believe that the continuous improvement and mutual support 南京夜生活网 of Shiyuan’s product power and brand power have broken the foundation for the company’s development, and the company’s performance may continue to grow rapidly.

We estimate that the company’s EPS for 2019-2021 will be 1.

15 yuan, 1.

45 yuan and 1.

83 yuan, target price range is 39.

10 yuan?
41.

40 yuan, maintain “Buy” rating.

  Product upgrade: The launch of Guoyuan V9 high-end products is conducive to increasing consumer brand awareness. The high-end products Guoyuan series have been cultivated and constructed for 15 years since its launch in 2004, and have become a weapon to promote the rapid development of this world.

In addition to the sub-high-end products represented by Folio and Sikai, Jinshiyuan actively launched high-end products of the V series. In August 2019, Qingya Sauce’s Guoyuan V9 was launched, consolidating Jinshiyuan’s confidence in participating in head competition.The launch of high-end products is conducive to improving consumers’ brand awareness of this world.

The company’s 2019 interim report shows that the operating income of special A + products represented by the national margin V series, folio, and quartile.

7.4 billion, an increase of 44 in ten years.

33%, accounting for 49% of the company’s liquor revenue from the same period last year.

37% increased to 54.

98%.

  Brand building: The company has steadily promoted basic marketing and continued to improve its brand power. The company has steadily promoted marketing. In addition to marketers and local platform advertising, the company has strengthened the promotion and promotion of national advertising.

Since April 2014, Jin Shiyuan has been named the CCTV large-scale public welfare tracing program “Waiting for Me” for 5 consecutive years. In January 2019, Jin Shiyuan’s image promotional film appeared on the outdoor screen of Times Square in New York for the third time.The world showed the unique charm of “China’s national fate, the world is bound to the world”; In September 2019, the main venue of the Central Radio and Television Central Mid-Autumn Festival Party was settled in Huaian, Jiangsu. Today, Shiyuan has become the chief support unit of the main venue of Huaian.

A variety of innovations go hand in hand in this world, taking the pace of substitution in the nationalization of the brand and even internationalization.

  Market layout: Strengthen cooperation with wine channels from other provinces and wine companies, and actively break through the markets outside the province. Jiangsu, as the base market of this world, has always occupied more than 90% of the income structure of this world.

But only if the company strengthened the construction of markets outside the province and created a more precise marketing policy through the advantages of the platform can the breakthrough in the markets outside the province be achieved.

In May 2018, Jinshiyuan and Zhejiang Shangyuan Group signed a strategic cooperation agreement to help the company achieve a breakthrough in the Zhejiang market. In October 2018, Jinshiyuan announced the acquisition of 34% -49% of Shandong Jingzhi Wine Co., Ltd.To jointly develop the Shandong market.

  The company’s performance may continue to improve, maintaining the “Buy” rating. We believe that the company continues to promote product and brand strength through product upgrades, brand building and market layout and other measures, and the company’s performance may continue to improve.

What do we expect the company 2019?
In 2021, sales revenue will be 48.

7.3 billion, 62.

1.6 billion and 78.

370,000 yuan, an increase of 30%, 28% and 26% each year, and EPS is 1.

15 yuan, 1.

45 yuan and 1.

83 yuan, the average PE of the comparable company in 2019 is expected to be 34 times, giving the company 34 in 2019?
36x PE estimates that we have raised our target price range to 39 due to changes in the benchmarking company.

10 yuan?
41.

40 yuan, maintain “Buy” rating.

  Risk warning: industry competition intensifies, macroeconomic performance exceeds expectations, and food safety issues.