Shede Spirits (SH:600702) Minsheng Securities·2024-08-23 10:39Investment Rating - The report maintains a "Recommended" rating for the company [2][3] Core Views - The company reported total revenue of 3.271 billion and net profit attributable to shareholders of 591 million for the first half of 2024, reflecting a year-on-year change of +7.32% and -35.75% respectively [2] - The company is adopting a "control volume and stabilize price" strategy to cope with the pressure on profits, focusing on long-term quality development [2] - The company’s gross margin decreased by 10.96 percentage points to 60.93% in Q2 2024, primarily due to a weakening structure in mid-to-high-end liquor [2] - The company is expected to see a decline in revenue for 2024, with projected revenues of 6.387 billion, 6.591 billion, and 6.954 billion for 2024, 2025, and 2026 respectively, indicating a year-on-year decrease of 9.8% in 2024 [3] Financial Forecasts - For 2024, the company’s revenue is projected to be 6.387 billion with a net profit of 1.197 billion, reflecting a year-on-year decrease of 32.5% [3][7] - The earnings per share (EPS) for 2024 is estimated at 3.59 yuan, with a price-to-earnings (PE) ratio of 13 [3][8] - The company’s gross margin is expected to be 69.89% in 2024, with a net profit margin of 18.73% [7][8]