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Shun Xin Agriculture (000860) Interim Review: Steady increase in performance in line with expected quality + Jingwei culture helps Niu Er to cultivate the country

Shun Xin Agriculture (000860) Interim 杭州夜网论坛 Review: Steady increase in performance in line with expected quality + “Jingwei” culture helps “Niu Er” to cultivate the country
The performance of the interim report grew steadily, in line with expectations. The company released the 2019 interim report with revenue of 84 in 2019H1.1.6 billion / + 16.36%, net profit attributable to mother 6.48 ppm / + 34.64%; of which, the liquor business revenue was 66.58 ppm / +15.31%, accounting for 79%, with pork business revenue of 14.31 ppm / + 16.22%, accounting for 17%.2019Q2 revenue 36.51 ppm / + 11.99%, net profit attributable to mother 2.19 ppm / +89.94%, 49 advances received.55 ppm / + 44%, income plus advance receipts increased by 28%.We estimate that the company’s net profit attributable to its parent in 2019-2021 will be 12 respectively.07/15.32/18.4.8 billion yuan, corresponding to EPS of 1.63/2.07/2.At 49 yuan, the company’s “Niu Er” national brand + Beijing culture output continued to benefit from the “Light Bottle Wine” concentration to increase dividends and maintain the “Highly Recommended” level. New civic culture + Beijing flavor culture has super strong radiating power, objectively promotes the “Niu Er” nationalization and “good wind utilization”, and the urbanization rate has increased. “Niulanshan” brand and “New Citizen” group culture, identity recognitionHighly consistent, overlapping and rooted in Beijing’s home base market for many years, the persistence, breadth and depth of consumer training of “authentic Erguotou, authentic Beijing flavor” are extraordinary. In recent years, the “Jingweier” pop culture objectively assists Erguotou products to the northeast culture.The occupancy of liquor brands and local light bottle wines, and this trend cannot be reversed in the short term. Quality first, “Niu Er” continues a steady growth trend, but it must pay attention to the growth rate of products in higher price segments. The company’s scientific research and innovation and deep technical reserve of liquor, the report can be developed and used with the same increase29.23%, escorting quality stability with high output.In 2019, the liquor business accelerates the promotion of the marketing strategy of “deep distribution, structure adjustment, and tree model”, and pays more attention to the cultivation of consumers in the future price range based on the reserve. In 2018, the company’s 22 provincial markets sold over 100 million yuan.The report length of the Yangtze River Delta, the Pearl River Delta plate market still maintained rapid growth.We judge that in the mid-to-low price segment with large market capacity and relatively high brand concentration, the nationalized “bovine second” cost-benefit bottled wine has exerted its force, and the trend 返回码: 500 网站打不开?重查 of head concentration may accelerate. During the period, the expense ratio fell, and the net profit margin increased steadily. The overall gross profit margin of the company in 2019H1 was 36.82%, down by 2.93pct, mainly due to the increase in direct costs of raw materials, packaging materials, labor costs, etc., the gross profit margin of the liquor business fell.07pct; in the first half of the year, the company’s advertising delivery slowed down, and the sales expense ratio and management expense ratio were 10 respectively.17% and 4.78%, down by 2 respectively.01pct and 0.76 points; net interest rate 7.75%, with the same increase of 1.13pct, profitability has risen steadily. Risk warning: food safety issues, new product cultivation effect in the high price segment is less than expected.