KWEICHOW MOUTAI(SH:600519) Haitong Securities·2024-08-11 03:01Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1]. Core Views - The company reported a total revenue of 81.931 billion yuan for the first half of 2024, representing a year-on-year increase of 17.8%, with a net profit attributable to shareholders of 41.696 billion yuan, up 15.9% year-on-year [2]. - The company plans to implement cash dividends twice a year from 2024 to 2026, with a total dividend amount not less than 75% of the annual net profit attributable to shareholders [3]. Financial Performance - In the first half of 2024, the gross profit margin slightly decreased to 91.9%, and the net profit margin was 49.96%, reflecting a year-on-year decline of 0.72 percentage points [7]. - The company expects earnings per share (EPS) for 2024 to be 68.78 yuan, with a projected price-to-earnings (P/E) ratio of 25-30 times, leading to a fair value range of 1719.44 to 2063.32 yuan [8]. Revenue Breakdown - For the first half of 2024, revenue from Moutai liquor and series liquor increased by 15.7% and 30.5% respectively, with total revenues of 68.567 billion yuan and 13.147 billion yuan [22]. - The company’s traditional channel revenue increased by 4.52 percentage points compared to the same period last year, indicating a shift in channel structure [22]. Cash Flow and Financial Health - The company reported a contract liability of 9.993 billion yuan in Q2 2024, a year-on-year increase of 36.3%, indicating strong sales growth [23]. - The net cash flow from operating activities for Q2 2024 was 27.434 billion yuan, reflecting a year-on-year increase of 9.1% [23].