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Yanghe shares (002304) quarterly report comments: the third quarter is still under adjustment to repurchase shares to show company confidence

Yanghe shares (002304) quarterly report comments: the third quarter is still under adjustment to repurchase shares to show company confidence

The single third quarter revenue performance was negative, mainly due to the company’s initiative to adjust the company’s announcement of the first three quarters of 2019 revenue 210.

980,000 yuan, an increase of 0 in ten years.

63%; 19Q3 income 50.

99 ‰, a decline of 20 per year.

61%.

19Q3 saw negative growth. We believe that there are two main reasons: 1) the dispersion of sub-high-end growth rates and intensified competition. Real estate wine leaders have successively arranged sub-high-end price segments, and they have seized part of the increase.The 100-300 yuan price segment seeks structural upgrades, which also has a certain impact on the sea blue and sky blue.

We expect that the first three quarters of sea blue and sky blue have negative growth, and dream blue has maintained positive growth.

2) Since May this year, the company has successively adjusted channel inventory, price system, organizational structure, personnel and other aspects to sacrifice short-term performance to ensure the company’s long-term development.

The first three quarters of 2019 net profit attributable to mother 71.

46 ppm, an increase of ten years.

53%; net profit attributable to mothers in the third and third quarters is 15.

65 ppm, a decline 杭州夜网论坛 of 23 per year.

07%.

Incentives for employees who plan to invest 10-15 million US dollars to repurchase shares, I believe the company has the ability to adjust in place. The company announced that it intends to repurchase shares with its own funds of 1-15 billion US dollars. All the repurchased company shares are used for core employees.Implement equity incentives or employee stock ownership plans.

The repurchase demonstrates the company’s confidence in long-term development in the future. In addition, through the “entrepreneurs” such as Yang Tingdong and Zhang Yubai, they have withdrawn from front-line management positions. The current shareholding ratio is relatively low. The repurchase as an incentive for employees will promote team motivation.

The company has begun to make adjustments since May this year, and actively control the goods in the short term and help the terminal to sell; the long-term adjustment of the division of labor between manufacturers and dealers to motivate dealers.

We believe that the company has the highest level of modern management in the liquor industry, and we believe that the company has the ability to achieve long-term alternative development through strategic and tactical adjustments.

Earnings forecast We expect the company’s revenue to be 242 in 19-21.

39/262.

35/288.

660,000 yuan, an increase of 0 in ten years.

33% / 8.

24% / 10.

03%; net profit is 82.

13/89.

64/99.

45 ppm, an increase of ten years.

21% / 9.

15% / 10.

94%; EPS are 5 respectively.

45/5.

95/6.

60 yuan / share, corresponding PE is 19/18/16 times, with reference to the historical PE (current annual report) range of 15-27 times in the past two years, it is expected to adjust and adjust in place next year to promote accelerated performance, giving 18 times PE in 2020, a reasonable value of 107RMB / share, maintain BUY rating.

Risk warning: competition in the province is intensifying, consumption upgrades exceed expectations, and structural upgrades are less than expected.