King's Luck(603369) 华鑫证券·2024-08-18 05:09Investment Rating - The report maintains a "Buy" rating for the company [2][4] Core Views - The company's performance aligns with expectations, and its market strategy is steadily advancing [2] - The company reported a revenue of 7.305 billion yuan for H1 2024, representing a 22% year-on-year increase, driven by solidifying its domestic market while implementing regional and sectoral strategies [2] - The net profit attributable to shareholders for H1 2024 was 2.461 billion yuan, up 20% year-on-year, with a non-recurring net profit of 2.446 billion yuan, reflecting a 19% increase [2] Summary by Sections Financial Performance - In Q2 2024, the company achieved a revenue of 2.634 billion yuan, a 22% increase year-on-year, with a net profit of 929 million yuan, up 17% year-on-year [2] - The gross margin for Q2 2024 increased by 0.2 percentage points to 73.02%, attributed to a higher proportion of premium liquor sales [2] - The company’s sales expense ratio decreased by 1 percentage point to 12.23%, due to optimized budget allocation for channel expenses [2] Product and Market Strategy - The company’s revenue from different product categories in H1 2024 was 4.654 billion yuan for A+ class, 2.216 billion yuan for special A class, and 258 million yuan for A class, with respective year-on-year growth rates of 22%, 26%, and 14% [2] - The company is focusing on normal distribution for mainstream products while strategically promoting tactical products [2] - The company’s direct sales and wholesale revenue reached 95 million yuan and 7.163 billion yuan respectively, with year-on-year growth of 31% and 22% [2] Market Expansion - The company’s revenue from domestic and foreign markets in H1 2024 was 6.658 billion yuan and 599 million yuan, reflecting year-on-year growth of 21% and 36% respectively [2] - The company is enhancing its market presence in key provinces and replicating successful strategies from pilot markets to accelerate its expansion [3]