2021.09.06
■ Gujing announced that sales in 1H21 grew by 27% yoy to Rmb7bn and net profit rose by 35% yoy to Rmb1.38bn (2Q21: 29% and 45% yoy), in line with our estimates, driven mainly by a product structure upgrade for its Cellar Age brand.
■ Since early 2021, the Company has recovered steadily, outperforming other Anhui baijiu brands in its home market, Anhui province. We expect the Company’s sales to grow continually by 11% yoy in 2H21F with net profit up 31% yoy.
■ Reiterate Add with an unchanged DCF-based TP of Rmb275.
