2021.09.02
■ Wuliangye reported revenue growth of 19.5% yoy to Rmb36.7bn, and net profit growth of 21.6% yoy to Rmb13.2bn, in line with our expectations.
■ Direct sales grew rapidly by 251% yoy in 1H21, driving up revenue growth and improving its GPM.
■ The ASP of both the Wuliangye brand and the Series brands increased in 1H21, indicating a successful product mix upgrade.
■ We expect Covid-19 volatility to have limited impact on 3Q21F sales and Wuliangye to continue to expand its direct sales and Classic Wuliangye in 2H21F. The sales volume of Classic Wuliangye could reach 1,000t in FY21F.
■ Reiterate Add with an unchanged DCF-based TP of Rmb337.
