Yanjing Brewery(SZ:000729) Orient Securities·2024-08-23 02:41Investment Rating - The report maintains a "Buy" rating for the company with a target price of 13.25 CNY per share [3][6]. Core Insights - The company reported a revenue of 8.05 billion CNY for the first half of 2024, a year-on-year increase of 5.5%, and a net profit attributable to shareholders of 760 million CNY, up 47.5%, with a net profit margin increase of 2.9 percentage points to 10.8% [1][2]. - The growth of the U8 product line is expected to be rapid, while the growth of the Liqueur brand is anticipated to slow down. In the first half of 2024, the mid-to-high-end beer segment generated 5.06 billion CNY in revenue, a year-on-year increase of 10.6%, while the ordinary beer segment saw a revenue of 2.32 billion CNY, down 6.4% [1][2]. - The gross profit margin increased to 43.4%, benefiting from structural upgrades and a decrease in raw material costs, particularly imported barley [1][2]. Financial Summary - The company forecasts earnings per share of 0.32 CNY, 0.42 CNY, and 0.50 CNY for 2024, 2025, and 2026 respectively, with a slight downward adjustment in revenue projections for 2024-2025 [2][6]. - The company's cash flow remains robust, and using the FCFF valuation method, the equity value is estimated at 37.3 billion CNY [6][8]. - The projected revenue for the company is expected to grow from 14.21 billion CNY in 2023 to 15.41 billion CNY in 2024, reflecting a year-on-year growth of 8.4% [5][12].