Kouzijiao(SH:603589) Guoxin Securities·2024-08-29 08:03Investment Rating - The investment rating for the company is "Outperform the Market" [3][5][7] Core Views - In Q2 2024, the company achieved a revenue growth of 5.9% year-on-year and a net profit growth of 15.1%. For the first half of 2024, total revenue reached 3.166 billion yuan, up 8.7% year-on-year, and net profit attributable to shareholders was 949 million yuan, up 11.9% year-on-year [1][4] - The company is focusing on product strategy adjustments, with both new and existing products being promoted simultaneously. Despite a slowdown in demand and upgrading speed in Anhui province, there are signs of marginal improvement [5][6] - The company aims for a full-year revenue target of 7.035 billion yuan, representing an 18% year-on-year increase. The revenue forecast for 2024-2025 is 6.66 billion yuan and 7.29 billion yuan, with year-on-year growth rates of 11.7% and 9.5%, respectively [5][9] Financial Performance Summary - In Q2 2024, the company's liquor revenue grew by 3.72% year-on-year, with high-end, mid-range, and low-end liquor revenues increasing by 3.48%, 4.01%, and 16.62%, respectively. The company is focusing on the domestic market, particularly in southern Anhui, where growth is faster [1][4] - The gross profit margin in Q2 2024 improved by 4.52 percentage points year-on-year, recovering to a normal level of 75.0%. The sales expense ratio increased by 3.9 percentage points, while the tax and additional rates decreased by 2.55 percentage points [1][4] - The company's operating cash flow in Q2 2024 was 108 million yuan, down 58.6% year-on-year, indicating pressure on cash flow due to weak domestic demand [1][4]