Wine companies focus on strengthening shareholder returns by increasing dividend rates. Some companies have dividend ratios of 4% or even higher
In July, the total value of the Society grew at zero and above the quota, +2.7% YoY (+2.0% in June), and -0.1% YoY above the limit (June -0.6%). Among them, food was +9.9%, and tobacco and alcohol were -0.1% YoY. The zero growth rate in July was slightly higher than in June. The food category showed resilience, and leading companies were able to surpass the industry's growth rate with strong channel power and product strength.
As real estate policy stimulus intensifies, the liquor business scenario may boost expectations, and demand such as school entrance banquets and Mid-Autumn Festival National Day is expected to drive market sales.
Wine companies focus on strengthening shareholder returns by increasing dividend rates. Some companies have dividend rates of 4% or more, and they still have the potential to achieve good development in the next few years. CITIC Construction Investment Securities believes that the overall valuation of the sector is currently low.
Dongwu Securities released a research report saying that since 23H2, the post-epidemic consumption pulse has subsided, 24Q2 consumption has further weakened, and domestic demand still needs to be boosted.
The reason for poor travel and liquor consumption during the Dragon Boat Festival holiday is that residents' income expectations are poor, and the other is a negative wealth effect due to falling asset prices such as real estate.
At the industry level, price fluctuations for high-end wine increased at the end of the 24Q2 season, and the price trend of core single products of other listed wine companies was rising steadily, mainly because in the off-season, most wine companies controlled goods and stabilized prices first, so as to better save energy for the Q3 peak season.
The 24H1 industry's overall apparent repayment growth rate > revenue growth rate. The industry excluded Maowu revenue growth rate > apparent repayment growth rate > revenue growth rate, showing that most wine companies are more cautious about channel repayment intentions, and dealer customers have begun to take the initiative to leave the warehouse.
Liquor-related companies:
Zhenjiu Li Du (06979): In 2023, Zhenjiu Li Du achieved another excellent result in the context of industry adjustments, achieving revenue of 7.030 billion yuan, an increase of 20.10% year on year; adjusted net profit of 1,623 billion yuan, up 35.50% year on year; net profit and gross margin both increased, and cash flow improved dramatically. At the same time, the four major brands under Zhenjiu Lidu all achieved double-digit year-on-year growth. High-end results were remarkable. Revenue from related products increased by 33.2% year on year, reflecting the high quality of performance growth.
