Wuliangye (000858)： The year-old Wufengcheng took the opportunity again-see the 1218 dealer conference 2019
Wuliangye (000858): The year-old Wufengcheng took the opportunity again-see the 1218 dealer conference 2019
We participated in the Wuliangye 1218 Dealer Conference. The company completed the organizational structure reform run-in period and the digital marketing introduction period in 19 years, successfully achieved its goals, and finally fully rewarded the dealers.
2020 will be the first year of the full implementation of digital marketing. It will enable the channel system to be streamlined. The core issues of the channel price system will be gradually improved and streamlined.
The company announced a double-digit growth target for next year’s revenue growth. The plan is reasonable and strives for high quality. We believe that the launch of new products and the increase in group purchase business may bring more than 20 years of expectations.
Maintain 19-19 EPS forecast4.
52 and 6.
37 yuan, and a target price of 165 yuan, corresponding to 30 times PE in 20 years, re-enter the “strongly recommended -A” investment rating.
The implementation of the reforms has brought in good years, and the plan for 2019 has been successfully reached.
We released the report “Spring, Spring and Autumn, and Good Things Become Rich” after the Spring Candy Conference this year. Looking back at the end of the year, the company began to transform its marketing organization, its brand system was drastically downsizing, its marketing team was strengthened, and its digital system cooperated with eight generations of new products.Series of wine structure integration, 19 years for the introduction of digital marketing and organizational structure run-in period, while successfully reaching the joint venture company 50 billion and the group’s 100 billion goals, the reform has taken a big step forward, can be described as a fruitful year.
At the 1218 dealer meeting, a large amount of rewards (up to 5 million, totaling about 500 million US dollars) was awarded, and the coverage was wide (the total amount of awards increased by 868 times, an increase of 70%), and the final overall rewards for the dealers were sufficient.
2020 is the beginning of the comprehensive implementation of Wuliangye’s digital marketing measures. Increasing the approval price and returning value is the focus of work and strive for higher quality growth.
2020 will be the first year of the comprehensive transformation of Wuliangye’s digital marketing. After the eight-generation Wuliangye scan code system was launched in July this year, after half a year of running-in and trial implementation, it will fully utilize digital marketing tools in 20 years and more accurately regulate the different channels.Shipment volume, marketing resources, and reward and punishment mechanisms, with the ultimate goal of increasing market prices and channel profits.
The evaluation criteria for dealers have substantially increased quantitative indicators, such as the dealer code scanning rate, the number of high-quality terminals, the dealer terminal repurchase rate, and the terminal purchase code scanning rate.
We believe that Wuliangye’s price card has a thousand yuan price band. A small increase in terminal price will not affect consumers’ purchasing decisions. The core is still streamlining the channel price system, optimizing channel quotas, and gradually rationalizing the approval price, which will promote the company to accelerate.Enter into a positive business cycle.
The specific implementation of 20-year digital marketing tools is an important guarantee. The indicator of concern is whether the approval price in the strong season is strong, but not the off-season approval price.
We expect that the 20-year Spring Festival will maintain a price-sale status, and the 20-year Mid-Autumn Festival will gradually increase the price.
The growth target of 2020 is rational, and strives for high-quality growth. New product launches and group purchases will increase the possibility of exceeding expectations.
The company has given double-digit growth in its 2020 revenue target, of which Wuliangye ‘s main brand volume has increased by 5-8%. We believe that the company considers the uncertainty of the external environment and the thinking of the post-hundred-billion-era era to achieve the 100-billion goal.The goals set are rational, strive to achieve higher quality growth, fully consider the rise in approval prices and terminal prices, and achieve a win-win situation for manufacturers.
In addition, in 2020, in addition to enjoying the eight generation Wuliangye price increase protection, the group purchase channels, ultra-high-end product market development (ultra-high-end products 501 and 39 degrees Wuliangye new products will be launched in succession), 佛山桑拿网 the layout of specialty store outlets, etc.It will bring the company more than expected in 20 years, and we continue to maintain the company’s 18% growth forecast for 20 years.
Investment suggestion: In the coming year, the comprehensive reform dividend will be accelerated, with equal emphasis on quality and speed, maintaining a target price of 165 yuan, and regaining the investment rating of “Highly Recommended-A”.
The release of reform dividends has been the core to promote the growth of Wuliangye in recent years. 2019 is the introduction period of digital marketing tools and the running-in period of organizational personnel. In 2020, the company will accelerate the transformation of digital marketing tools, organizations and personnel, and cut into the core points of price increase., Leading to higher quality 武汉夜网论坛 growth, while having the potential to exceed expectations.
We slightly adjust our core volume and price assumptions and maintain our EPS forecast for 19-21.
52 and 6.
37 yuan, maintain target price of 165 yuan, corresponding to 30 times PE in 20 years, re-enter the “strongly recommended -A” investment rating.
Risk Warning: Significant drop in the price of competitive products, the reform progress is not up to expectations, and the overall demand is not up to expectations