Gujing Gong Liquor (000596): a new level of growth

Gujing Gong Liquor (000596): a new level of growth

Recent situation of the company Since the Spring Festival, we have conducted continuous research on the company’s internal and external channel dealers, and the sub-high-end continues to show high growth. Among them, the sub-high-end Spring Festival repayments increased by 100%, and the structure of repayment outside the province has been greatly improved.

The current channel inventory is benign, and some products such as the ancient 20 even appear out of stock.

The height of the brand and the scale of sales increased simultaneously, and the company continued to move towards a national sub-high-end brand.

  The review settled in ancient 20, the company’s brand high-end strategy is clear and can be consistently implemented, the brand height has been significantly improved.

The company launched the Gu 20 in the second half of 18, priced at about 600 yuan / bottle, which is higher than the mainstream high-end 300?
500 yuan price.

Since then, the company’s marketing has fully focused on the ancient 20, including the CCTV Spring Festival Gala, high-speed rail, highway advertising, and the cultivation of the core consumer groups offline. The company gradually broke through the low-end of the past.High-end products.

At the same time, joint cultivation within and outside the province has also formed a joint force, which avoids the internal consumption of high-end and low-end outside the province.

Throughout the country, Gujing’s brand influence and height have increased, especially in Henan, Shandong, and Hebei, where certain sales bases have been established. These markets used to be dominated by low-end product sales.

  Gu 20: the second expansion of the market inside and outside the province.

The provincial market, ancient 8, ancient 5 has now grown to 100?
200, 200?
The largest single product at the price of 300 yuan, the serialization of the original pulp has delayed the company’s ability to grasp 300 in advance?
Expansion at the price of 800 yuan, and the intensive price band product layout further consolidated the competitive advantage.

Outside the province, relying on the Gu 20 to recruit new dealers is significantly smaller than in the past, and higher pricing not only avoids excessive fierce mass price competition, but also increases profit margins and companies and channels can pay more for the market.

  Saturated offensive marketing is beneficial to Gujing’s sub-high-end card position and brand, product and channel deployment in a wider area. The current sub-high-end is being transformed into mass consumption. The company’s marketing capabilities will benefit from this trend, especially in sub-high-end.High-end bottom 200?
300 yuan price, about 2010?
The explosive growth of 11 years of ancient 5 and dedication in Anhui.

  It is recommended to maintain a sustainable profit forecast. The company’s growth logic for the transition from regional mid- and low-end wines to national sub-high-end brands has been further verified, and the market valuation center has been improved, raising the target price by 20.

1% to 124.

2 yuan, corresponding to 19/20 30.


2x P / E, currently expected to correspond to 19/20 26.


1x P / E, with 15% growth in target price, maintain recommendation.

  The 合肥夜网 conventional channels and direct sales models of venture companies are uncertain about the cultivation of high-end consumer groups.