Wuliangye (000858): Accurate strategy to advance into the channel epidemic situation, the next level of targets remains undiminished

Wuliangye (000858): Accurate strategy to advance into the channel epidemic situation, the next level of targets remains undiminished

Event description According to reports from Weijiu, from February 2nd to 5th, Wuliangye has conducted three special conferences for two consecutive times to further study epidemic prevention and control and enterprise development.

On February 16th, the Wuliangye Brand Division issued a “Notice on Precise Policy, Doing No One-size-fits-all, and Doing a Good Job in the Recent Market” for each marketing theater.

Core point 1. The current target of the epidemic situation is not diminished. The “double three” strategy and precise response measures are clear.

In response to the impact of the epidemic situation later this year, the company caused a rapid response, two consecutive three special meetings, focusing on the unwavering development goals, promoting gradual revenue to maintain double-digit growth, and insisting on the “one control, three enhancements” formulated at the beginningBased on the work guideline of “”, we will further strengthen the “three optimizations” and accelerate the “three transformations.”

The notice issued recently supports dealers through five specific measures: (1) strengthening market research and analysis, focusing on consumer sales; (2) optimizing plan substitution, categorizing and adjusting dealers, and implementing precise policies instead of one size fits all.Focus on supporting capable dealers with good inventory, timely reduction of the recent pressure on dealers who are under pressure to sell, and provide customized financial support for dealers with short-term 无锡桑拿网 capital turnover difficulties; (3) Quick market expense reporting, which is required at 2Completed within working days; (4) Redeem the existing terminal point rewards in a timely manner and be in place by the end of February; (5) Effectively strengthen customer service, etc.

2. The direction of the company’s reform is clear, and the measures are focused on the key points, which will help stabilize channel confidence, release channel potential, enhance brand image, and promote the smooth upward price increase of the Fifth Batch.

The company’s core pain point in the past was not in product demand, but in the inadequate control and decision-making difficulties.

Since the end of 2018, the company has initiated the transformation of the marketing system. The strategy of “new product replacement + channel segmentation + team 四川耍耍网 expansion + control panel profit” has been implemented in an orderly manner. The eighth generation of new products has started digital marketing, which has made the organization and management more refined and achieved obvious results.Yes, the eight-generation Wuliangye batch price steadily stood at 900 yuan.

This year, improving the dealer structure and optimizing plan has gradually been put on the top priority of marketing reform. It is expected that the 20-year increase will be around 5-8%, with less pressure. The company’s various reforms will gradually advance and continue to release endogenous power.Through the boost of channel confidence, the approval price will rise steadily.

3. High-end wines are least affected by the epidemic. The company’s pre-holiday tasks are better than expected, and the gradual goal achievement is highly certain.

Due to the special consumption attributes of high-end wine, its business needs and gift needs have been basically released before the festival, and the company has transformed into antioxidant capacity through long-term practice and gradual reforms, responding quickly to the epidemic, and digesting adverse effects.

The company’s current marketing situation is good. In January of this year, channel preparations were better than expected. The inventory of distributors remained at about 10%, and core terminal sales reached about 80%. Some distributors also implemented 2-month contract plans in advance.

After the epidemic, the company expects to receive compensatory consumption, which is both high-end famous wine, Wuliangye and Moutai. There is room for the approval price, the cost is prominent, and the replacement. The company pays close attention to the sales situation, and has already laid out a possible consumption rebound after the outbreak.
Looking into the future, the short-term impact of the epidemic situation will not change the long-term development trend of the industry and companies. The existing companies have healthy channels, large adjustable room, continuous increase in conversion grant prices, sustainable and continuous implementation of reforms, and the probability of successfully achieving their goals.

Earnings forecast and rating: EPS is expected to be 4 in 19-21.



48 yuan, corresponding to PE 27/23/19 times, maintaining the “strongly recommended” level.

Risk reminders: 1) Epidemic control is not up to expectations; 2) Macroeconomic changes; 3) Marketing performance is not up to expectations; 4) The performance of grant prices and liquidation are not up to expectations.