Investment Rating - The report maintains a rating of "Buy" for the company [7][14]. Core Insights - The company reported revenue in line with expectations and profits exceeding expectations, with strong cash flow performance driven by structural upgrades that enhanced profit margins [3][7]. - The independent operation of the "Zhen Thirty" division is expected to unlock growth potential through focused resource allocation and organizational empowerment [3][7]. Financial Performance Summary - For the first half of 2024, the company achieved revenue of 4.13 billion RMB, a year-on-year increase of 17%, and an adjusted net profit of 1.02 billion RMB, a year-on-year increase of 27%, surpassing expectations [7][8]. - The operating net cash flow for the period was 570 million RMB, a significant year-on-year increase of 166%, attributed to the easing of cash collection issues following a peak in base liquor inventory [7][8]. - The gross margin improved by 0.9 percentage points year-on-year to 58.8%, while the adjusted net profit margin increased by 1.8 percentage points to 24.6% [7][8]. Brand Performance - Revenue growth for the brands in the first half of 2024 was as follows: Zhen Jiu +17%, Li Du +38%, Xiang Jiao +2%, and Kai Kou Xiao +2% [7]. - The main brand, Zhen Jiu, saw both volume and price increases, with volume up by 8% and price up by 9%, leading to a gross margin increase of 1.2 percentage points to 59.2% [7]. - Li Du experienced a significant volume increase of 30% with a price increase of 6%, maintaining a gross margin of 66.8% [7]. Structural Upgrades and Future Outlook - The company has been optimizing operational efficiency and enhancing the effectiveness of its sales team, alongside refining channel management and customer relationships [7]. - The recent strategic upgrade of the Zhen Jiu brand, including the establishment of the Zhen Thirty division, is expected to further enhance growth potential by focusing on service and experience for partners and accelerating terminal construction [7].
珍酒李渡：2024年半年报点评：组织赋能，利润超预期