Shanxi Fen Liquor (600809): National Reform Endeavour to Forge the Fragrance Revival
Guide to this report: Under the framework of 杭州夜网 state-owned enterprise reform, the company will gradually revitalize its management mechanism through systematic reforms, such as organizational marketization, and gradually improve incentives, to stimulate organizational vitality and employee initiative, and actively deploy a national market.
Investment highlights: Investment advice: Maintain EPS 2 in 2019-21.
35 yuan forecast, the consumption base of sub-high-end liquor is more reasonable than in 2012, and the sub-high-end market is expected to maintain steady expansion. We are optimistic that the company will strengthen its brand and deepen the channel’s national market layout. With reference to comparable companies, it will give PE a 34 times increase in 2019 and raise its targetThe price has increased to 75 yuan (previously 70 yuan).
The ancestor of fragrance, a model of famous wine.
The wine can be traced back to the Northern and Southern Dynasties. It has a long history and rich heritage. It is the representative of the fragrance-type liquor and a model of Chinese famous wine.
The company’s product system is high-end, low-end, uniform structure, and it mainly focuses on blue and white, Laobaifen, Bofen and bamboo leaf green series.
Shanxi’s state reform was at the forefront, and the development mechanism itself was abolished.
In 2017, the company promoted a new round of conventional corporate reforms and incorporated them into the previous round of reforms. This round of reforms has a strategic height, determination and intensity unprecedented.
The aim is to promote the market-oriented reform of enterprises, break through the traditional employment mechanism, further improve and improve the incentive mechanism, decentralize decision-making power to optimize the internal promotion system, improve decision-making capabilities, and greatly stimulate front-line employee initiative and organizational vitality.
Blue and white leads the renaissance of fragrance, and the area for expansion is broad.
The blue and white series is the main single product that promotes the nationalization of Fen liquor. The consumption base of Bfen and Laobaifen series continues to develop and consolidate the mass consumer group of fragrance.
With the deepening of the nationalization, Bophin’s cost-effective is expected to seize the market’s continued volume and create phenomenal large single products.
In the region, the fragrance is still the mainstream in the province. Outside of the province, especially in the surrounding provinces of Shanxi, there is a good foundation for the fragrance mass. The company actively promotes the layout of surrounding Shanxi and other opportunity markets, strengthens the brand, and deepens the channel is expected to lead the revival of fragrance.
Core Risks: Deteriorating consumer environment and sharp decline in premium liquor prices