Controlling Shareholder Sees Opportunity In Yanjing Beer

Yanjing Beer's controlling shareholder plans to buy more of the company.

EO: 燕京啤酒换帅 “燕京+雪花”猜想

Beijing Yanjing Brewery Co., Ltd. (000729.SZ, referred to as "Yanjing Beer") May 14 announcement of its controlling shareholder, Beijing Yanjing Brewery Co., the company's holdings of investment plans, saying the Overweight is "confidence in the company based on intrinsic value judgments and future sustainable development." This is the second coaching change after the Yanjing Beer Group, another big news. Market reaction today shares rose 3.45 percent, to close at 10.49 yuan per share.

The 61-year-old Li Fucheng Yanjing Beer Group has recently stepped down as chairman. Economic Observer Online Reporter May 14 after a confirmation to the Beijing Economic and Information Office of the Committee Shunyi District, Shunyi District Economic and Information Committee party secretary, took over as director Guo Zhenjiang has Yanjing Beer Group chairman positions. Meanwhile, Guo also serves Shunyi District Commission by letter of the original post.

Yanjing Beer is developed from Shunyi Chinese beer large enterprises. 84 years from the "Shunyi County brewery" was renamed "Beijing Yanjing Brewery", listed on the Shenzhen Stock Exchange July 16, 1997. 20 years in charge of Li Fucheng Yanjing Beer, Yanjing Beer led from local small businesses, the development of China's beer industry pivotal large enterprises, the highest sales volumes in 2013, annual sales reached 571.4 million.

However, Yanjing beer sales in 2014 fell for the first time, fell 6.87 percent, to 532 million liters. But sales China Resources Snow, Tsingtao beer, Anheuser-Busch InBev's top three beer giants still maintained a growth momentum. Yanjing Beer and these three giants in the widening distance.

Data show that China Resources Snow 2014 sales of 11.842 million tons, an increase of 1%, the market share of 24%. Its high profile product line sales improved rapidly; Tsingtao beer sales last year, 915.4 million liters, an increase of 5.2%, the market share of 18.6%; AB InBev beer sales last year, 714.12 million liters, an increase of 6.3% market share of 15.9%.

Chinese beer industry sales of the largest CRB, invested 5.38 billion yuan in September last year completed the acquisition of Kingway industry leaders. Kingway production capacity of more than 200 million liters. It also led to further speculation in the industry, with headquarters in Beijing Yanjing Brewery, China Resources Snow next goal might be a merger or alliance.

Beer industry analysts told the Economic Observer Online reporter Fang Gang, Yanjing Beer coaching change will not bring much impact to the enterprise. Yanjing Beer After years of development, has been the formation of a functioning mechanism and development track, not because of some executives to leave the big upheaval occurred. Secondly, the beer industry big fish eat fish, the time has come. China Resources Snow Kingway acquisition completed last year is a signal. The Yanjing Beer sales and market share last year, shrinking, there is the risk of sliding into the second tier of the industry, the possibility of an alliance with China Resources Snow is there.

Vincent Fang believes that the current slowdown in China's beer industry, expand the fight between the beer giant, the result of a long tug of war, may be headed for cooperation among a number of companies, out of a win-win way. Yanjing and snow possible alliance rumors in the industry for some time. We can finally come together, but also the reform of enterprise development and the new high-level needs.

CSC Huang Fu-sheng and other analysts said that the current structure of the beer industry is more stable, and Yanjing cooperation will be a good chance of overtaking bend. Where the company base market share is high, but there are tons of wine prices low, headquarters staff incentives are not in place, low operational efficiency and other issues (management fee rate 5.25 percentage points Tsingtao). Yanjing future developments Reform. If by means of state-owned enterprises to seek development opportunities, the company will increase the performance of elasticity.