This report is about Xinghuacun Fen Wine (600809 CH), a beverage company. The company had a strong start to 2022, with estimated revenue and attributable NP of RMB7.4/2.7bn, up 35%+/50% yoy. The company accelerated its product structure upgrade, with rapid sales of the Qinghua series and steady rollout of the Panama series beyond Shanxi. The performance of Bofen remained stable under the quota mechanism. The analyst maintains 2021/2022/2023 EPS forecasts at RMB4.41/6.15/8.10 and values the stock at 55x 2022E PE, a premium over the Wind consensus-based peer-median of 36x. The analyst retains a BUY rating, as the company's 2021E-2023E net profit CAGR (47%) is higher than the peer-median CAGR of 26%. The robust peak-season sales lay groundwork for full-year 2022.
