LZLJ(SZ:000568) Xin Lang Zheng Quan·2025-04-29 08:08Core Viewpoint - Luzhou Laojiao has maintained steady growth despite the deep adjustment in the liquor industry, as evidenced by significant increases in key financial metrics and a strong outlook for future performance [1][3]. Financial Performance - In 2024, Luzhou Laojiao achieved revenue of 31.196 billion yuan and a net profit attributable to shareholders of 13.473 billion yuan, continuing growth into the first quarter of 2025 [3]. - The company reported a gross margin of 87.54% and a net margin of 43.27% for 2024, ranking second among publicly listed liquor companies after Kweichow Moutai [3]. - Contract liabilities (advance payments) reached 3.978 billion yuan, a year-on-year increase of 49%, with a further 21% growth in the first quarter of 2025, exceeding broker expectations [3][4]. Cash Flow and Dividends - The cash collection ratio reached 128.34%, with net cash inflow from operating activities of 19.182 billion yuan, an 80% year-on-year increase, and total cash on hand of 33.578 billion yuan [4]. - The board announced a cash dividend of 45.92 yuan per 10 shares (including tax), leading to a total cash dividend of 8.758 billion yuan for 2024, with a payout ratio increased to 65% [4][5]. - The company plans to increase the dividend payout ratio to 75% by 2026, ensuring a minimum annual cash dividend of 8.5 billion yuan [5]. Market Position and Strategy - Luzhou Laojiao's dual-brand strategy includes Guojiao 1573 and Luzhou Laojiao, with Guojiao 1573 being a key high-end product competing with Kweichow Moutai and Wuliangye [5][7]. - The company reported that Guojiao brand sales exceeded 20 billion yuan, while Luzhou Laojiao brand sales surpassed 10 billion yuan, indicating expanded market coverage and penetration [5]. - The company is focusing on digital transformation and channel development, emphasizing consumer engagement through bottle scanning and targeting lower-tier markets for growth [7][8]. Industry Context - The liquor market is characterized by a "one super, two strong" structure, with Kweichow Moutai, Wuliangye, and Luzhou Laojiao being the only three companies with high-end market access [8]. - The high-end liquor market is projected to reach 166.4 billion yuan by 2026, with a compound annual growth rate (CAGR) of 12% from 2021 to 2026, indicating a trend towards concentration among leading brands [9]. - Luzhou Laojiao's unique resources, such as the "1573 National Treasure Cellar Group," provide a competitive edge in producing high-quality liquor, ensuring the scarcity of its flagship product [9].