Yanghe shares (002304) 2018 annual report 2019 first quarterly report review: steady operation

Yanghe shares (002304) 2018 annual report 2019 first quarterly report review: steady operation

Matters: The company released its 18-year 合肥夜网 annual report and 19-year quarterly report, and the company realized revenue of 241 in 18 years.

60 trillion, with the same increase of 21.

30%; net profit attributable to mother 81.

1.5 billion, an increase of 22.

45%, basically consistent with the performance report.

Of which 18Q4 realized income 31.

9.4 billion, an increase of 5.

08%, realizing net profit attributable to mother 10.

76 trillion, the same increase of 2.


1Q1 achieved 108 revenue.

90 trillion, the same increase of 14.

18%; net profit attributable to mother 40.

21 trillion, with an increase of 15.


Revenue in 18Q4 was profit-on-month, and advance receipts in 19Q1 were fully released.

The company realized revenue of 241 in 18 years.

60 trillion, with the same increase of 21.

30%, basically consistent with the 夜来香体验网 performance report.

Among them Q4 realized income 31.

9.4 billion, an increase of 5.

08% QoQ (+20.

11%) The decline in growth rate is mainly due to: 1) the overall economic downward pressure in the fourth quarter broke through, and dealers’ purchase expectations are expected to decline; 2) from October 1st, Yanghe will stop delivery of Haitianmeng and Shuanggou Treasure Square seriesPrice, terminal demand was slightly damaged; 3) Intensified competition within the province.

The revenue growth rate in 19Q1 improved month-on-month, which is expected to be due to the recognition of revenue from advance receipts.

19Q1 account received in advance 19.

7.4 billion, down 24.

9.4 billion.

In terms of products, Dream Blue continued to maintain a relatively rapid growth rate. In 2018, the growth rate is expected to maintain more than 50%, and the revenue share is expected to have reached about 27%.

Haitian’s growth rate is slow, maintaining small double-digit growth and single-digit growth.

In 19, Dream Blue is expected to maintain better growth, and the product structure is expected to continue to upgrade.

By region, the province realized 116 income.

1.2 billion, an increase of 13.

52%; income outside the province was 115.

7.5 billion, an increase of 25.

28%, with a revenue share of 47.

91%, an increase of 1.

52 points.

The company received 58 in 2018 and 19Q1.1.5 billion (-0.

89%) and 82.

3 billion (-3.

09%), the operating net cash flow was 31.

8.2 billion (22.

69%) and 1.

2.3 billion (-93.


The expense ratio remained relatively stable and the operating capacity was stable.

Gross profit margins for 2018 and 19Q1 were 73.

70% (+7.

24%) and 72.

29% (-2.


The increase in gross profit margin in 2018 is mainly due to: 1) the growth of Dream Blue has accelerated and the product structure has been upgraded significantly; 2) in December 2017, M3 and M6 have been increased by 5 yuan / 10 yuan / bottle by reducing costs; February 2018 Hai/ Day / M3 / M6 ex-factory price increased by 4 yuan / 6 yuan / 15 yuan / 30 yuan / bottle; 3) The accounting method of the company’s consumption tax in September 17 was included in the liquor production cost from entrusted processing and changed to a liquor production enterpriseSelf-produced sales are included in taxes and surcharges, resulting in lower production costs.

Selling expenses in 201810.

60%, same as minus 1.

39pct, 19Q1 sales expense ratio is basically the same as last year.

The management expense ratios for 2018 and 19Q were 7, respectively.

17% (-0.

52 points) and 5.

03% (+0.


The business tax rates are 15 respectively.

60% (+9.

82 points) and 14.

25% (-1.

96pct), of which the consumption tax is priced at 12 in 2018.

64%, the same increase of 9.

02pct, mainly from May 1, 2017, the minimum taxable price approval ratio of liquor consumption tax has been adjusted from 50% to 70% to 60%, due to the rise of the tax base.

To sum up, the company’s net interest rates were 33.

59% (+0.

36 points) and 36.

96% (+0.

52pct), operating capacity remains stable.

The intensified competition within the province is actively responding, and there is still better room outside the province.

Due to the province’s base competitiveness, the price of Haitian is transparent, the distributors’ channel profits are relatively thin, and their enthusiasm is slightly hindered. In addition, competition is intensifying, and the province’s revenue growth rate is expected to improve.

In response to this, the company launched a new version of Haitian to improve dealer channel profits, and some regions have met the company’s expectations.

At the same time, the company also actively responded to competing products. At the marketing conference that was reorganized after the year, the company adjusted its organization and personnel, and set up a sales area in Huai’an to block competitive products.
Despite the short-term growth impact, it is beneficial to long-term development.
According to grassroots research, the growth rate in the province has improved during the Spring Festival, and the repayment has been slightly affected, but the growth is relatively benign and stable growth is still expected.

The growth rate outside the province is still relatively early. The core markets of Shandong, Henan, Anhui, Zhejiang and Hebei have all performed well, and it is expected that new growth will be brought in the future.

Investment suggestion: The company’s focus on the sub-high-end dream blue has achieved significant results, and its operating goals for 19 years have been steadily improving. We supplement the 21-year forecast and slightly adjust the EPS for 19-20 to 6.



69 yuan (previous forecast was 6.


06 yuan), corresponding to 19/17/16 times PE, respectively, combined with the company’s growth rate expectations and changes in the current sector, given a 25-year change in 19 years, the target price is 156 yuan, maintaining a “strong push” rating.

Risk warning: macroeconomic downside risks; increased competition risks; demand is less than expected.