WLY(SZ:000858) EBSCN·2024-08-29 09:44Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company reported Q2 results that exceeded market expectations, with total revenue of 158.15 billion yuan, a year-on-year increase of 10.08%, and a net profit of 50.12 billion yuan, up 11.5% year-on-year [2][3] - The company is focusing on steady progress, with its main brand developing robustly and optimizing its fragrant liquor products [2] - The sales cash collection and pre-receipts showed significant improvement, with Q2 sales cash receipts reaching 278.79 billion yuan, a year-on-year increase of 93.4% [3] Summary by Sections Financial Performance - For the first half of 2024, the company achieved total revenue of 506.48 billion yuan, an increase of 11.3% year-on-year, and a net profit of 190.57 billion yuan, up 11.86% year-on-year [2] - The sales gross margin for Q2 was 75.01%, an increase of 1.74 percentage points year-on-year, indicating improved profitability [3] - The company’s revenue from its main product, Wuliangye, was 392.05 billion yuan, a year-on-year increase of 11.45% [2] Market Strategy - The company is optimizing its product structure, focusing on mid-to-high price segments, which has led to a significant increase in average prices despite a reduction in sales volume for lower-priced products [2] - The number of distributors for Wuliangye and fragrant liquor increased, indicating a strategic focus on enhancing distributor performance and market penetration [2] Profitability and Valuation - The report forecasts net profits for 2024-2026 to be 339.2 billion yuan, 382.8 billion yuan, and 428.7 billion yuan respectively, with corresponding EPS of 8.74 yuan, 9.86 yuan, and 11.05 yuan [3] - The current stock price corresponds to a P/E ratio of 13, 12, and 10 for the years 2024, 2025, and 2026 respectively, suggesting a favorable valuation [3]