Shanxi Fenjiu, the leader of Fen-flavor liquor, began to expand its production capacity again.

A few days ago, the board of directors of the company unanimously passed the proposal of investing 65,438+0,654,380 billion yuan to expand and transform the original wine production capacity and upstream infrastructure.

In recent years, the company has moved from Shanxi to the whole country, with great revival potential. As one of the famous wines, Shanxi Fenjiu intends to squeeze into the first echelon of liquor, but its profitability is still lower than that of Mao Wulu.

Fenjiu energy development

Shanxi Fenjiu (600809. More and more rich SH) moves frequently, laying the foundation for its sustained and rapid growth in future performance.

On the evening of July 2 1, the company announced that the board of directors unanimously passed six proposals, all involving capacity expansion and investment in supporting projects.

According to public information, the company will build a number of infrastructure needed for upstream brewing processes, such as brewing workshop and wine storage workshop, with a total cost of about165438+28 million yuan.

Among these capacity expansion projects, the most striking thing is the new original wine production capacity of 65.438+0 million tons, and the estimated investment is about 490 million yuan. At the same time, in order to cooperate with the original wine storage, the company will build a new 58,800-ton original wine storage project with an investment of about 397 million yuan.

After combing zebra consumption, it is found that the company has never stopped the expansion of production capacity since 20 17, and it is increasing year by year.

From 20 17 to 2020, the annual design capacity will increase from 160000 kiloliters to 193000 kiloliters, and the annual actual capacity will increase from 95000 kiloliters to 145000 kiloliters.

The strength of continuous expansion of production capacity comes from the company's high-speed growth performance. Li Qiuxi, the chairman of Shanxi Fenjiu Company, took office on 20 17 and issued a military order, and the company immediately embarked on the era of high growth.

From 20 17 to 2020, the growth rate of the company's operating income was 44.42%, 48.46%, 25.92% and 17.63% respectively, and the growth rate of the net profit attributable to the mother was 57.39%, 58.24%, 30.65% and 56.39% respectively.

This growth rate kills many listed wine companies, even higher than the wine king Kweichow Moutai.

In the same period, Kweichow Moutai (6005 19. SH) were 52.07%, 26.43%, 15. 10% and 10.29% respectively, and the growth rate of the net profit attributable to the mother was 6 1.97% and 30% respectively.

cross the Yangtze River

You will find that in recent years, in addition to local liquor brands, Fenjiu has gradually appeared in the wine cabinets of street restaurants.

Especially the light bottle fen liquor with high cost performance has become one of the liquor brands that diners drink every day.

Guangping Liquor, with the advantage of solid-state fermentation of pure grain, has gained a firm foothold in the price range from 40 yuan to 50 yuan, and is the seed player of Shanxi Liquor.

At the 20 19 Fenjiu global distributor conference, the company disclosed that the annual sales volume of Fenjiu series was nearly120,000 cases, and the total sales volume exceeded1400,000 bottles.

Relying on light bottle wine products to block the low-end market is one of the strategies for the company to seize the market.

In addition to light bottle wine products, there are also blue-and-white Fenjiu series.

Blue-and-white Fenjiu series is mainly products aged for 20 or 30 years, and the price of a single bottle ranges from 400 yuan to 800 yuan, which is the main product for the company to seize the second high-end price band.

Shanxi Securities Research Report shows that blue-and-white liquor with high gross profit margin is growing rapidly, and it is estimated that the proportion of blue-and-white liquor series will reach more than 35%.

According to the 2020 annual report, the income of liquor products including blue and white wine, Bofen, Panama wine and old white powder was 65.438+02.629 billion yuan, up 22.64% year-on-year.

However, Shanxi Fenjiu is obviously not satisfied and continues to March into ultra-high-end liquor products. In July this year, the company launched a 500 ml blue-and-white Fenjiu 40-Dragon product at a price of 3 199 yuan.

To say that the change in recent years is that the company has changed its conservative style in previous years, not only launching new products, but also constantly digging corners outside the province in the sales area.

The 2020 annual report shows that the company's sales revenue from outside the province is 7.852 billion yuan, accounting for 56.7% of the company's current income. In the first quarter of this year, this figure rose to 59.70%. Three years ago, the income contribution from outside the province was only 39.90%. During this period, the number of distributors outside the province increased from 1020 to 225 1, reaching 2304 at the end of the first quarter of this year.

The vast area south of the Yangtze River has strong purchasing power and has become a key market for the company to expand. Shanxi Securities Research Report predicts that the company will double its growth in southern markets such as Jiangsu, Zhejiang and Guangzhou this year. It is estimated that during the Tenth Five-Year Plan period, the income ratio of the company inside and outside the province is expected to rise from the current 4: 6 to the future 3: 7.

Attack the first camp

After the epidemic, consumption picked up, and the performance of listed liquor companies generally improved, as did Shanxi Fenjiu, the second-highest leader.

In the first quarter of this year, the company's revenue and net profit returned to the mother reached 7.332 billion yuan and 265.438+0.82 billion yuan respectively, up by 77.03% and 77.72% respectively. This quarter's performance has far exceeded the whole year of 20 17.

According to the announcement on the pre-increase of semi-annual results in 20021disclosed by Shanxi Fenjiu last week, it is estimated that the operating income will increase by 4.83 billion yuan to 5.52 billion yuan, up by 70%-80% year-on-year, and the net profit attributable to the mother will increase by176.6 billion yuan to 2.087 billion yuan, up by10 year-on-year. %-year on year.

After the announcement of pre-increase, nearly 10 institutions issued research reports, unanimously expressing optimism about the company's profitability.

Since 20 17, the company's performance has continued to explode. On the one hand, the product structure adjustment focuses on blue and white series and Bofen series, thus achieving scale growth.

Zheshang Securities Research Report said that the blue and white series maintained a growth rate of 40%-60% from 20 17 to 20 19, and the growth rate exceeded 30% in 2020.

In addition, the rapid development of the company is related to the marriage of China Resources Department, which is promoted by the latter.

20 18 In March, Huachuang Xinrui, a subsidiary of China Resources Venture Holdings, acquired a1.45% stake in Shanxi Fenjiu from Fenjiu Group for 5 165438 yuan.

After becoming the second largest shareholder of the company, the company expanded nationwide with the help of China Resources Department, and retail chain channels such as CR Vanguard and Ole under China Resources opened the door for Fenjiu. In just three years, Shanxi Fenjiu has become the fastest growing brand in the domestic liquor market.

The success of the liquor reform seems to make the company a little high. At the shareholders' meeting held at the end of April this year, Chairman Li Qiuxi announced that Fenjiu would become the first camp in the industry by the end of the 14th Five-Year Plan. Li Qiuxi even proposed to surpass Maotai and Wuliangye in 15.

So far, the gap between Shanxi Fenjiu and Kweichow Moutai is not half a point. Its market value differs from Kweichow Moutai by 2 trillion yuan. Last year, the net profit of returning to the mother was more than 43 billion yuan.

Under the influence of nationalization and high-end strategy, the growth rate of Shanxi Liquor really kills peers. In terms of profitability, there is still a big gap with leading liquor enterprises such as Kweichow Moutai, Wuliangye and LU ZHOU LAO JIAO CO.,LTD.

In 2020, the net profit rate of Shanxi Fenjiu was 22.27%, far lower than that of Maotai, Wuliangye and LU ZHOU LAO JIAO CO.,LTD, which were 52. 18%, 36.48% and 35.78%.