光明乳业(600597.CN)

Bright Dairy Alert:Key takeaway from analyst meeting

时间:16-04-22 00:00    来源:德意志银行

2016: Targeting 11% yoy sales growth and 29% yoy NPAT growthBright Dairy held a post-results analyst meeting on Thursday. It guidesRMB21.5bn revenue and RMB540m net profit for 2016, implying 11% yoysales growth and 29% yoy NPAT growth.Management expected key earnings drivers to be:

New products launches. In 1Q2016, the company has launched 2 newfavors of Mosilian yoghurt and expects to launch more new products inthe year. Management target a double digit growth for Mosilian helpedby new flavor products and channel expansion

Channel expansion and efficiency improvement. The company has about0.9mn POS nationwide but the sales are mainly contributed by 0.7mnPOS. Management targets to improve sales per POS of current networkand target to expand the POS number to 1.0mn in 2016. It target toincrease POS number to 2mn in 3 years.

Gross margin expansion and operating expense control. Managementexpects gross margin to improve in 2016 driven by low raw materialprice. The company indicated that it has largely de-stocked the highpricedinventory in 2015. Meanwhile, management expected there aregood room to improve operating efficiency by cutting unnecessaryexpansen.

Improving profitability for North East region. The management believedold product mix and sales channel inefficiency have been the reasons forcontinued loss-making in the company’s north east business unit. Themanagement target to improve product mix and channel management in2016, and expects an improving operating results

To improve revenue of cold chain logistical subsidiary

Management expects to drive higher revenue from providing cold chainlogistic business to third parties. To recap, Bright’s subsidiary Lingxian Logisticis one of the leading cold chain logistic providers in China. It has 19distribution centers in Eastern China with 55,470sqm of warehouse space. Thecompany now provides cold chain service to Bright and other third-partycompanies, including Ajisen (538.HK, NR), Lianhua (980.HK, NR), and Yurun(1068.HK, NR) among others.