In just two days,Chongqing BeerThe market value has evaporated over 18 billion yuan!
Since the evening of August 18Chongqing BeerCo., Ltd. (600132.SH, hereinafter referred to as “Chongqing Beer“) After the disclosure of the semi-annual report, Chongqing Beer’s share price began to fall by its limit on August 19.
On August 20, Chongqing Beer still closed at a limit price of 140.28 yuan per share. Two trading days ago, Chongqing Beer’s stock price was still around 180 yuan. Two trading days later, Chongqing Beer’s stock price had returned to around 140 yuan.
“It may be that the capital market’s expectations of us were too high before, and the company’s operations are all normal. We are pushing Wusu’s nationalization, the market costs are relatively high, and there is no significant increase in profits.” On the afternoon of August 20, Chongqing Beer Securities Office Respond to the inquiries of the Economic Observer reporter.
Limit down for two consecutive days
Chongqing Beer’s semi-annual report shows that the company’sOperating incomeWas 7.139 billion yuan, a year-on-year increase of 27.51%,Net profitIt was 622 million yuan, a decrease of 3.34% year-on-year.
In the analysis of the semi-annual report, Chongqing Beer stated that starting from 2021, the company has become the only platform for Carlsberg to operate beer assets in China. One of the five largest beer companies in China, its core competitiveness has been comprehensively enhanced, which is conducive to grasping the high-end Market opportunities to achieve sustainable high-quality development.
In terms of market channels, after the company has grown from a regional beer company to a national beer company, its core market has expanded from the three provinces and cities of Chongqing, Sichuan, and Hunan to Xinjiang, Ningxia, Yunnan, Guangdong, and the provinces of East China and North China. All over the country. Each advantageous market area has high-quality customer resources, strong brand advantages and stable sales channels.
In terms of brand portfolio, the company’s brand portfolio of “local brands + international brands” is even stronger. International brands include Carlsberg, Leburg, 1664, Greenburg,BrookeLin, etc., local brands include Chongqing, Shancheng, Wusu, Xixia, Dali, Fenghuaxueyue,Tianmu LakeAnd so on, can meet the consumer demand of consumers in different consumption scenarios and price ranges.
In terms of supply network, the number of company’s wineries has increased from 14 to 26 (including the newly purchased Yancheng winery in the first half of 2021), which can achieve linkages in a wider area in terms of procurement, production, and logistics. Work together to further improve operational efficiency.
The sales volume of Chongqing Beer in the first half of the year also increased. During the reporting period (referring to the first half of 2021), the company achieved beer sales of 1,549,900 kiloliters, an increase of 22.59% over the same period of the previous year (after restatement) of 1,264,300 kiloliters.
A key question that the market pays attention to is why Chongqing Beer’s profits will decline in the context of both sales and revenue growth?
A staff member of the Chongqing Beer Securities Office explained to the Economic Observer: “The cause of the epidemic in the first quarter of last year resulted in a relatively low basis for revenue data. Therefore, the growth rate of the quarterly report this year was relatively large. Compared with our friends, we actually did a good job. Yes, our stock price reflects the expectations of the capital market (Chongqing Beer’s stock price has risen from RMB 90 to RMB 200 since 2021). The capital market may have too high expectations, thinking that our sales volume and revenue are also doing well. But the increase in profits is not very obvious.”
Profits are affected by the rapid expansion of the Wusu brand
“During the national expansion of the Wusu brand (previously a local Xinjiang brand), insufficient production capacity in the eastern region caused us to ship goods from the central and western regions. Freight costs increased, and then Wusu’s gross profit declined, resulting in a decline in the company’s overall gross profit. , The company’s market investment in the second quarter has also increased, such as advertising and market investment, and channel dealer fees. Various reasons led to the company’s profit in the second quarter that did not meet the expectations of the capital market.Brokerage, Investors andshareholderI am more concerned about this issue and are adjusting expectations. However, please rest assured that the operations of Chongqing Beer’s company are normal. Wusu only started to officially expand nationally this year. The initial investment will definitely be more, and it will gradually pay off in the later period. “The above-mentioned Chongqing Beer Securities Office staff analyzed the reasons why profits did not rise in the first half of the year.
“Wusu” is a local beer brand operating in Xinjiang before Carlsberg injected Chongqing beer assets, but it has grown rapidly in recent years. The beer brand represented by “Death Wusu” has become popular on the Internet because of its strong alcohol.
Unlike traditional Chinese beer, Wusu beer comes from Xinjiang, and its taste is different from the beer you usually drink. On social media, open Douyin and search for “Wusu”. The topic is almost “How many Wusu can you drink?” At station B, there are more than a thousand videos about Wusu.
Wusu Beer, a local beer brand born in Xinjiang in 1986, has not been out of Xinjiang for decades, but it has risen against the trend in recent years and has exploded in growth.
In the semi-annual report, Chongqing Beer specifically mentioned the Wusu brand, saying that the expansion of Wusu Beer “outside the border” will continue to accelerate market intensive cultivation, develop blank channels and sales outlets, and expand market share.
On August 19, Chongqing Beer also held the 2021 semi-annual reportPerformanceAt the media briefing session, President LEE Chee Kong said that Chongqing Beer has always been innovating, and “Wusu” is a new first-line national high-end brand that Chongqing Beer strives to build. In addition to “Wusu”, there is also “1664”. High-endization is the company’s strategy and continues to advance.
Investors are also very concerned about Chongqing Beer’s Wusu brand strategy. For example, an investor asked Wusu Beer’s revenue, net profit and growth rate in the last three years through SSE e-interaction.Chongqing Beer recommends that it check the time of asset injectionannouncement。
Another investor asked, “Carlsberg’s high-end product line has a higher tonnage price, which has got rid of the inherent transportation radius restriction of beer. Inland factories can distribute goods across the country. Please tell us in detail which high-end brands currently produced by the company have resolved the transportation radius restriction. The problem? How is the production process solved? Will the company’s high-end brands go to the whole country in the future and there will be no transportation radius restrictions?”
Chongqing Beer replied, “We believe that continuously increasing the average ex-factory price of products through high-end products is an effective way to expand the sales radius of beer products.”
Although there has been a two-day limit, Chongqing Beer’s share price is still at a historical high.
Since 2021, Chongqing Beer has gone from the lowest price of 89.12 yuan per share to a high of 209.99 yuan per share on July 22, a staggering increase. The company’s market value also exceeded 100 billion yuan when its stock price exceeded 209 yuan. Mark. With Zhihuo, Chongqing Beer has experienced a trend of rising and falling. As of the close of August 20, its total market value was 67.9 billion yuan.
(Source: Economic Observer)
.