Why profits of white wine prices?

With the advent of the consumer season, Wuliangye [38.26-1.65% share bar research report], Yanghe shares [143.00-0.76% stock bar research report] "blue classic" and other liquor prices have recently raised prices, this measure can naturally enhance the future of these companies The performance, but from the semi-annual report, the performance of these companies has increased significantly, the profits are quite high, why should also increase prices.

This time, the price increase rate is even greater. After Wuliangye announced that the ex-factory price of wine products has been substantially raised by 20% to 30% from September 10, Yanghe shares also announced this week that they will be “blue classics” from September 13. "The average price of the series of products increased by about 10%. The prices of the "Jinbaofang" products and some of the sporadic products were raised by an average of 5%.

The price increase of white spirits seems to have begun again, and the increase is even greater. For example, the “Blue Classic” series of Yanghe’s shares rose by 5% a year ago, and this time the increase has reached 10%. Yanghe said that the price increase was due to the increase in the prices of raw and auxiliary materials for products. On the surface, there is a certain reason because the 2011 semi-annual report showed that the gross profit rate of liquor decreased, for example, the gross profit margin of Yanghe’s liquor business dropped 0.49% year-on-year. The margin of medium-to-high-end liquor dropped by 2.14%, and the gross profit margins of white spirit companies such as Wuliangye and Luzhou Laojiao [43.40-1.70% shares bar research report] all declined.

The performance of liquor companies greatly increased However, look at the semi-annual report of these liquor companies will find that the performance of these companies has not declined, but the net profit has instead increased significantly, becoming one of the brightest sectors in the first half of the year.

According to the statistics of iFinD financial data of 28 companies listed in the same industry, 28 wine listed companies achieved operating income of 66.5 billion yuan in the first half of this year, an increase of 35.7% year-on-year, and a total net profit of 15.775 billion yuan, an increase of 49.96% year-on-year. The average earnings per share was 0.61 yuan. This achievement is definitely better than other industries, regardless of the performance growth or earnings per share, far higher than the average level of listed companies. Moreover, the performance of the vast majority of alcohol companies increased year-on-year, of which, Gujing Distillery [92.00-2.00% shares bar research report], Jinseed wine [19.58-1.06% share bar research report] increased by more than 100% in the first half of the year, only Jinfeng The performance of a few companies, such as the wine industry [10.91-1.89% share bar research report], declined slightly.

In addition, the total net profit of liquor companies is also quite large. In the first half of the year, there were 12 liquor companies with a total net profit of more than 100 million yuan, of which 4 companies had a total net profit of more than 1 billion yuan, namely Kweichow Moutai [207.08 0.59% Shares reported that net profit was 4.9 billion yuan, Wuliangye 3.4 billion yuan, Yanghe shares 1.8 billion yuan, and Luzhou Laojiao 1.4 billion yuan, ranking first among the listed companies in the Shanghai and Shenzhen stock markets.

Liquor is a profitable industry The companies whose net profit exceeds 1 billion yuan in the first half of the year are all liquor companies. The assets of these companies are not large, but the profits are very large. For example, the assets of Kweichow Moutai are only one-fifth that of Baosteel. The net profit is basically the same, indicating that liquor is a profitable industry. For another example, the highest operating income in the first half of this year was Tsingtao Brewery [34.40-0.55% share bar research report], reaching 12 billion yuan, which was higher than Wuliangye's 10.5 billion yuan and Kweichow Moutai's 9.8 billion yuan, but its net profit was only 990 million yuan. , is far lower than the two liquor companies.

This situation shows that the liquor's gross profit margin is quite high. Even in the first half of the year, the gross profit margin decreased year-on-year, Wuliangye's net profit increased by 48.72% year-on-year, and Yanghe's net profit increased by 69.95% year-on-year. Comparing liquor, wine, beer, and rice wine companies, the highest one in the first half of the year was the liquor company. The 13 liquor companies realized a net profit of 13.06 billion yuan in the first half of the year, accounting for 83% of all liquor company's performance, and their net profit increased year-on-year. 57.44% is the best of several classified industries.

In the first half of the year, the performance of the liquor company was good and had a great relationship with the price increase. In recent years, some high-end liquor prices have been an important factor in the continuous growth of the company’s performance. In contrast, wine, beer, and rice wine cannot increase prices so. The growth rate is not as good as that of liquor companies. However, liquor companies in the case of significant growth in performance, high gross profit margins, but also a price increase, it is a bit difficult to say, relying on prices to maintain growth in performance is not a good thing.