Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the market [4]. Core Insights - The company reported a revenue of 4.13 billion, a year-on-year increase of 17.5%, while the profit attributable to equity shareholders was 750 million, a decline of 52.6%. Adjusted net profit was 1.02 billion, reflecting a year-on-year growth of 26.9%, which aligns with expectations [4]. - The company is positioned as the only publicly listed liquor company in Hong Kong, focusing on the mid-to-high-end price segment. The two main products, Zhen 15 and Zhen 30, show potential for nationwide expansion, supported by ongoing market consolidation and product upgrades [4]. - The product structure has improved, with the mid-to-high-end price segments accounting for 67% of total revenue, an increase of 4.7 percentage points year-on-year [4]. Summary by Sections Financial Performance - For the first half of 2024, the company achieved revenues of 4.13 billion, with Zhen liquor, Li Du, Xiang Jiao, and Kai Kou Xiao contributing 2.7 billion, 670 million, 450 million, and 220 million respectively, showing year-on-year growth rates of 17.2%, 37.9%, 2.4%, and 1.6% [4]. - The gross profit margin for the first half of 2024 was 58.8%, an increase of 0.9 percentage points year-on-year, driven by a higher proportion of mid-to-high-end products and cost efficiencies from in-house production [5]. Future Projections - The company forecasts Non-GAAP net profits of 2.0 billion, 2.37 billion, and 2.76 billion for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 24%, 18%, and 16% [6]. - The earnings per share are projected to be 0.59, 0.70, and 0.81 for 2024, 2025, and 2026, with corresponding price-to-earnings ratios of 14, 12, and 10 [6]. Brand Development - Zhen liquor's sales volume reached 6,932 tons in the first half of 2024, an increase of 8% year-on-year, with an average price of 389,800 per ton, also up by 8.6% [4]. - Li Du brand sales volume was 1,371 tons, a 30% increase year-on-year, with an average price of 492,000 per ton, reflecting a 5.9% increase [4].
珍酒李渡：业绩符合预期，次高端引领增长