Author ｜ Eastland, Director of Tiger Sniff Research
Head Image ｜ IC photo
After closing on April 27, 2020, Wuliangye ( 000858.SZ ) disclosed the “2019 Annual Report”. The report shows that in 2019, revenue was 50.1 billion, an increase of 25.3% year-on-year ( 2018 revenue increased by 32.5% year-on-year ); net profit was 17.4 billion ( equivalent to 42.2% of Maotai ), with a net profit margin of 34.7%.
The day after the financial report was released ( April 28 ), Wuliangye ’s share price rose by 4.75%, and the closing price corresponding to the market value approached 540 billion, equivalent to Maotai 33.5%.
In view of the fact that the market value of Maotai has exceeded 1.6 trillion, investors suffering from “homophobia” intend to turn to Wuliangye, but before doing so, it is best to study the reasons for the difference in market value of the two companies.
High-end products
In 2013, Wuliangye’s revenue was close to 80% of Maotai, and it gradually decreased to 52% in the following years. It has rebounded in the past two years. In 2019, revenue was equivalent to 58.7% of Maotai.
From the perspective of revenue structure, high-priced wine is an absolute “main force.” In 2019, the sales revenue of high-priced and low-medium-priced wines was 39.67 billion and 6.63 billion, respectively, with high-priced liquor accounting for 85