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Yanghe shares (002304): The new Yanghe is worth looking forward to

2020-03-16

Yanghe shares (002304): The new Yanghe is worth 南京夜生活网 looking forward to

Event: The company released the third quarter report of 2019.

The company achieved 210 operating income in the first three quarters of 2019.

9.8 billion yuan, an annual increase of 0.

63%; net profit attributable to mother 71.

46 ppm, an increase of ten years.

53%; of which the third quarter revenue was 50.

99 ‰, a decline of 20 per year.

61%; Q3 net profit attributable to mother is 15.

65 ppm, a decline of 23 per year.

07%.

At the same time, the company launched a share repurchase program of 1 billion to 1.5 billion. The repurchased shares are intended to be used for equity incentives or employee stock ownership plans.

Facing the problem, destocking and financial management channels.

Since the third quarter of last year, there have been some problems in the company’s market inside and outside the province, such as: 1) the high inventory of Haitian product channels; 2) market price fluctuations; 3) there is some inconsistency in the relationship between manufacturers;Downshifting, the company’s third quarter revenue and net profit every 20 years.

61% and 23.

07%. At the same time, due to the increase of discounts in the channel, the gross profit margin is extended by 2 points.

57%, the sales expense ratio increased by 5 in ten years.

06%.

From the perspective of channel research, the company ‘s main products began to control goods in June. Mid-Autumn National Day still uses tree pricing and inventory 杭州夜网论坛 clearance as its main goals, resulting in a reduction in short-term repayments. We believe that the company is ahead of short-term and long-term benefits.There is a long-term future only by facing the problem bravely.

The price is the “lifeline” of the product, and the relationship between the manufacturers is the “cornerstone” of the company’s development. If you face the problem squarely, you can go further down to earth.

In order to build the confidence of the manufacturers and form a cooperative partnership, the company proposes a distribution model of “one business-oriented, multi-complementary complementary”, unified command, mutual consultation, and fully motivated dealers.

The team’s combat effectiveness is still leading the industry, and it takes time for the brand to rise.

In the past development, Yanghe has formed an extremely capable channel team that is leading the industry in terms of both the number and quality of personnel.

In the era of fragmented traffic, the strong brands represented by Maotai Wuliangye and the strong channels represented by Yanghe have had a differentiating performance this year.

Although there is an objective reason for Yanghe’s slowdown, it also seems to be one of the proofs in the current environment that “channels are easy to change and brands are difficult to do.” How to increase brand value and open an exposure in the high-end market is also the company.One of the issues that needs to be considered in mid- and long-term development.

But we still believe that Yanghe’s excellent team may reshape a blue legend.

Push motivation, invigorate, and then start the journey.

After more than ten years, the company plans to introduce employee incentives for the first time. The share repurchase of 1 to 1.5 billion in scale is intended to be used to allocate incentives or employee stock ownership plans. It is expected to cover the company’s core employees. It is of great significance to Yanghe during the conversion.The battle between offensive and defensive battles in Yanghe has already begun. The channel combing of Haitian in the province, the national development of Dream Blue outside the province, and other issues all require a team of strength. It is expected that the follow-up of employees’ motivation will inject vitality into the company’s long-term development.

Earnings forecast: Maintain “Buy” rating, we expect the company’s net profit attributable to its mothers to be 83 in 2019-2021.

0/91.

6/101.

7 trillion, corresponding to EPS are 5.

51/6.

08/6.

75 yuan, 18-20 in 2019-2021.

7/16.

9/15.

2 times.

Maintain target price of 136 yuan, corresponding to 22 times PE in 2020. Risk warning: product prices fluctuate sharply; the market within the province has improved more than expected.