WLY(SZ:000858) Huachuang Securities·2024-08-29 04:40Investment Rating - The report maintains a "Strong Buy" rating for Wuliangye (000858) with a target price of 215 CNY, while the current price is 114.00 CNY [1]. Core Views - The company reported a solid performance in its 2024 mid-year report, with revenue of 50.65 billion CNY for H1 2024, representing a year-on-year increase of 11.3%, and a net profit of 19.06 billion CNY, up 11.9% year-on-year [1]. - The report highlights a strong cash flow performance, with operating cash flow net amounting to 12.91 billion CNY, a significant increase of 619.6% [1]. - The marketing strategy is effectively executed, focusing on driving sales, stabilizing prices, and enhancing profitability, which is expected to lead to high-quality growth throughout the year [1]. Financial Performance Summary - For H1 2024, Wuliangye's revenue and net profit both showed double-digit growth, with Q2 revenue at 15.82 billion CNY, up 10.1%, and net profit at 5.01 billion CNY, up 11.5% [1]. - The gross margin for H1 2024 was reported at 77.4%, slightly up by 0.6 percentage points, while the net profit margin increased by 0.4 percentage points to 31.7% in Q2 [1]. - The company’s sales collection and operating cash flow both exceeded revenue growth, indicating strong operational efficiency [1]. Future Earnings Forecast - The report projects total revenue for 2024 to be 92.83 billion CNY, with a year-on-year growth rate of 11.5%, and net profit expected to reach 34.44 billion CNY, reflecting a growth rate of 14.0% [2]. - Earnings per share (EPS) are forecasted to be 8.87 CNY for 2024, with a price-to-earnings (P/E) ratio of 13 [2].