Investment Rating - The report maintains a "Buy" investment rating for the company [2][4]. Core Views - The company's profitability is under pressure, with H1 2024 total revenue at 5.943 billion yuan, a year-on-year increase of 1.30%, and net profit attributable to shareholders at 155 million yuan, a year-on-year increase of 2.77%. However, the Q2 2024 results show a significant decline, with total revenue of 1.810 billion yuan, down 14.77%, and net profit down 49.10% [2][3]. - The company is increasing its investment in premium wines, which has led to a decrease in profit contribution from this segment. The sales of famous wines have increased, but some have seen a decline in gross margin [2][3]. - The company is focusing on optimizing its cost structure and improving operational efficiency, despite facing challenges in cash flow, with negative net cash flow from operating activities in both H1 and Q2 2024 [2][3]. Summary by Sections Financial Performance - H1 2024 total revenue was 5.943 billion yuan, with a slight increase of 1.30% year-on-year. The net profit attributable to shareholders was 155 million yuan, up 2.77%, while the non-recurring net profit decreased by 3.63% to 138 million yuan. In Q2 2024, total revenue dropped to 1.810 billion yuan, a decrease of 14.77%, and net profit fell to 25 million yuan, down 49.10% [2][3]. - The gross margin for H1 2024 was 10.50%, a decrease of 0.73 percentage points year-on-year, while the net margin was 2.70%, an increase of 0.03 percentage points [2][3]. Product Performance - Revenue from white liquor and other products in H1 2024 was 5.585 billion yuan and 358 million yuan, respectively, with year-on-year growth of 2.88% and a decline of 18.30%. The gross margins for these segments were 9.36% and 28.35% [3]. - The company is actively promoting its premium wine brands and has organized numerous tasting events to enhance brand visibility and customer engagement [3]. Earnings Forecast - The report slightly adjusts the company's EPS forecasts for 2024-2026 to 0.59, 0.73, and 0.92 yuan, respectively, reflecting a cautious outlook due to short-term industry demand pressures. The current stock price corresponds to P/E ratios of 22, 17, and 14 for the respective years [4][6].
华致酒行：公司事件点评报告：业绩表现承压，精品酒持续推广