Yanjing Beer gross profit increased by leveraging cost reduction

September 24, 2016

Gross Out

Recovery in sales growth and cost reduction of the joint promotion, Guotai Junan is expected to Yanjing Beer (000 729, closing price 13.70 yuan) in 2009 ~ 2011 EPS could reach 0.54 yuan, 0.64 yuan and 0.73 yuan, to maintain target price of 16.2 yuan and “overweight” investment rating.

Sales growth of restorative Company’s sales in 2008 422 million liters (including hosting), 2009 sales plan for 460 million liters (including hosting). From the current Sell Change of view, Beijing, Inner Mongolia, Guangxi, the stability advantage of regional sales growth and the rapid growth of sales in Guangzhou to complete the plan allows the company the possibility of increasing.

National sales company in April rose 14%, of which good growth momentum in Beijing, the growth rate reached 20%. Since last year, Olympics Control during the Beijing area leading to reduced staff, food consumption appeared some decline in sales in Beijing in 2008 than in 2007 declined by about 40,000 tons. Olympics removal of the effects, it is expected the sales growth rate of Beijing this year will be on the rise.

Guangxi region is the company’s tradition of strong regional company in the region reached 85 percent market share. This year the company plans sales in the Guangxi region of 85 million liters, an increase of 6.5%. Guangdong Province will become the company’s sales this year, the fastest growing region. Plans in 2009 in Guangdong Province will reach sales of 29 million liters, the company’s competitive advantage in the Guangzhou region is gradually reflected in the future in Guangdong Province is likely to become its new sales and profit growth.

“1 +3” optimize the product structure
Cost reduction effect in April, after beginning to show, in the second half would be more significant decline. Beer company Raw materials Include malt, hops, Rice , Package Materials and coal (energy). Among them, the greater the proportion of malt.

Part of the company’s malt barley through the acquisition of their processing into malt, and the rest mainly from other acquisitions. Barley prices rose sharply last year as well as hops, rice prices, the company increased the cost of 450 million yuan. Determined from the end of last year the company stopped the acquisition of large quantities of barley, the main digestion of barley last year’s high Raw material . Currently, the company made a large high barley malt has been basically used up, so the dramatic fall in the price of malt may be beginning to show in June. The company initially expected to average in 2009 Malt fell about 20%.

At the same time, the company acquired the price of hops from a year’s 80,000 yuan / ton down to the current 3 to 4 yuan / ton, the price of coal from the Beijing area last 850 yuan / ton down to 560 yuan / tons. Taken together, Guotai Junan’s tons of wine this year predicted costs will drop about 5%. 2009, the company said will not consider reducing prices, due to the decline in costs, the company’s gross margin will be turned back up.

Addition, the company will continue to implement the “1 +3” brand strategy, the core brand, “Yanjing” sales proportion will gradually increase. Company from 2008 to the introduction of “Yanjing” + “Huiquan”, “Li River Spring”, “Snow Jin” and “1 +3” brand strategy, last year’s total sales of four brands accounted for more than 90 percentage %. To promote the further optimization of product structure, the company will continue to increase sales of four brands, in particular, to improve the “Yanjing” sales ratio. The “Yanjing” Beer prices are relatively high, a higher proportion of their sales on the company’s future average selling price and gross margin enhancement have played a larger role in promoting.

I am China Manufacturers writer, reports some information about blister sealing machine , can seaming machines.

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