Positive adjustment of product structure investment securities

Recently, CIC Securities visited alcoholic drinks (000799, closing price of 17.78 yuan) and a number of liquor wholesale markets around the company and related executives and a number of liquor distributors to share the company's long-term development strategy and sales. The company produces the original fragrance flavor liquor, in the late 80, through the mouth of the celebrity will be free and graceful alcoholic culture from the cultural celebrity Circle to the coastal developed cities to promote the price has been as high as 300 yuan, laid the company's brand Foundation, until now the company is still high-quality, high-end wine image based on the market. However, due to the diversification of investment mistakes, the failure of the transfer of control rights and other factors, the company missed the golden stage of development.　　2007 Sugar Wine Retail industry after the big Sugar group, began to revive the listed company wholeheartedly. High-grade wine structure, mid-range wine and strive for volume at present, Hunan liquor market capacity of about 7 billion yuan, per capita annual consumption of alcohol about 9.4 kg, is twice times the country. Hunan wine production only accounted for the province's demand for 20%~30%, the production price of only 9 yuan/bottle, compared to the national average production price of 14 yuan Low, Sichuan, Guizhou, Hubei and other provinces of the liquor seized the market share of Hunan. The company's provincial income accounted for 50%, only 200 million yuan, compared with the 1997 when the listing time.　　In recent years, many real estate wine has achieved a recovery (Yanghe, Kukikong and so on), and the market structure of Hunan Province in 2003, the Jiangsu market is very similar, at this time the drunkard and Yanghe, itself also experienced management team, mechanism, product structure and other aspects of the adjustment, this side shows that the company has the potential to revitalize. In terms of products, the company has caves, internal reference, sealed altar, alcoholic wine, Xiang Quan series, product line is long, the main profit varieties are internal reference, the concept of a complaint to seek points is "believe in the strength of quality", and the mainstream of the market to talk about emotion, history of the concept of differences But internal reference price is high, not easy to volume. In order to improve product structure, the company will be the main to push the altar, Xiang Quan. The main force of the altar is the Red Altar 15 (price 400 yuan), the concept is "sealed altar 15, only for this moment", but CIC securities found that the altar may exist price upside down phenomenon. This year the company set up the Hunan Spring Division, the hope will be Xiang Quan accounted for the proportion of performance from 10% to 40%, sealed altar, alcoholic drinks and other accounted for 30%~40%, and caves and internal reference accounted for 20%. Because the wine price is high, and worry-free raw material price rises (company base wine has 30,000 tons), more than 75% gross margin is expected to be maintained.　　At present, Xiang Quan liquor in Hunan province Sales is very low, only in Shandong sales have scale, CIC securities think space is still very large. Sales cost rate is expected to lower at present, the company in the province began to implement the Distributor Alliance strategy, is expected to reduce sales cost rate. In the high-end wine, the company in the past in Hunan, Beijing, Guangdong, Guangxi, Jiangsu, northeast and other markets in the form of membership system through the "opinion leader" Word-of-mouth spread, sales costs are very low.　　This year in order to better match the dealers market-oriented actively to carry out group buying business, the new set up a group buying division. On the high-end wine, in recent years the company is also constantly groping to optimize the channel strategy, such as the 2008 contraction of the market layout, deepGeng Hunan Market, its own in-depth terminal; 2009 The company also laid out the Guangdong, Shandong, Beijing, Hebei and other key markets, courted a number of distributors to develop buyout brands. In May this year, the company and the provincial distributor joint venture set up a Hunan sales company overall responsible for the sale of the province, the company first shipped to the sales company, the province of distributors from the sales company to take the goods. It is understood that the company for Hunan Sales Company's price and promotional policies and other dealers outside the province is no different. CIC Securities that, if the future company to strengthen the sales company's support, to the Luzhou-old cellar of the seven-spring model, at present up to 40% of the sales cost rate is expected to be greatly reduced.　　In addition, the company intends to make investment income treatment for the profits from the equity investment of Hunan Sales company. In addition, CIC securities that if the introduction of targeted additional distributors will be more conducive to the long-term development of the company. In July this year, the company announced that it intends to add more than 38.38 million shares to a specific investor, including the major shareholder in the company, and raise 423 million yuan into the "quality base wine brewing technology" and other 4 projects, the current issue of additional materials are still in preparation. CIC believes that specific investors, if they can include distributors, will promote the development of the company.　　And the development of the issue may become a short-term price catalyst. In the future profitability, CIC Securities forecast for the next three years the company's composite growth rate of 36%, 2010, 2011, 2012 EPS is 0.26 yuan, 0.46 yuan, 0.61 yuan, if the market value, only 5 billion yuan market capitalisation compared to other has been revived liquor enterprises still have a larger space, CIC Securities give the Company a "recommended" rating. Future personnel changes, additional development, sales volume and other factors are the price of catalysts, advised investors to pay close attention.