Shanxi Fen Liquor (600809): Fen Liquor shines brightly in 2020 and continues to 苏州桑拿网 develop

This report reads: The growth rate in 2019 is beautiful, and the performance is slightly higher than expected.

The dividends of the state reform will continue to be released. Focusing on blue and white in 2020, the company will expand to the south. The product structure and market layout will continue to adjust dynamically.

Investment Highlights: Maintain Overweight rating.

The growth rate in 2019 is beautiful, and the performance is slightly higher than expected.
The dividends of the state reform have been continuously released, and high-quality and efficient growth is worth looking forward to.

According to the performance forecast, the EPS for 2019 is 2.

32 yuan (+0.

1) Maintain the EPS forecast value of 2020-2021.

81, 3.

39 yuan, maintaining target price of 104 yuan.

Entering the 10 billion mark, the performance growth rate is dazzling.

Revenue of 119 in 2019.

14 trillion, +26 a year.

57%; net profit attributable to mother 20.

24 ppm, +37 a year.

64%, slightly exceeding market expectations.

Q4 single quarter continued to maintain high growth and achieved revenue of 27.

880,000 yuan, + 29% for the whole year; net profit attributable to mother 3.

28 trillion, + 65% a year ago, mainly due to the replacement of the single-quarter performance base in the fourth quarter of 2018.

The product structure and market layout go hand in hand, and the operating effect is remarkable.

In 2019, the company will steadily implement the product strategy of “grasping both ends and bringing the middle”. It is expected that the proportion of high-end and high-end products will increase from the past 40% to about 70%.+1 every night.

4pct to 17%.

Development outside the province has continued to advance. It is expected that the proportion within and outside the province will be transformed from 6: 4 in the past to 44%: 56%, exceeding the best level in history.

The blue-and-white potential energy continues to be released, and it expands further south.

In 2020, based on the results of the three-year reform, the company will do a good job of “one control and three improvements” (volume control, quality improvement, price increase, and efficiency improvement), and it is expected to sprint 20% sales growth target.

The product is “plugging high and controlling bottom”, appropriately controlling the sales of low-end products Bophin, giving full play to the potential of the blue and white strategic product, and controlling the amount of the price.;; regionally consolidate the province’s market, surround the market advantage of Shanxi, continue the national layout strategy, use team resources and brand high-end window period to develop incremental markets south of the Yangtze River and strive to achieve sustained high growth south of the Yangtze River.

Risk reminder: New crown epidemic affects liquor consumption, and industry competition intensifies.