Yanghe(SZ:002304) Guolian Securities·2024-08-31 04:39Investment Rating - The investment rating for the company is "Buy" (maintained) [7][11]. Core Views - The company has announced a three-year cash dividend plan that exceeds expectations, highlighting its investment value [6][11]. - The company is expected to achieve stable revenue growth despite a weak recovery in consumption, with projected revenues of 341.63 billion, 349.98 billion, and 356.15 billion yuan for 2024-2026, representing year-on-year growth of 3.13%, 2.45%, and 1.76% respectively [3][11]. - The net profit attributable to the parent company is forecasted to be 101.01 billion, 103.64 billion, and 105.54 billion yuan for the same period, with year-on-year growth of 0.85%, 2.60%, and 1.84% respectively [3][11]. - The company maintains a high dividend payout ratio, committing to a cash dividend of no less than 70% of the annual net profit and at least 70 billion yuan (before tax) for the years 2024-2026 [11]. Financial Performance Summary - In the first half of 2024, the company achieved revenue of 228.76 billion yuan, a year-on-year increase of 4.58%, and a net profit of 79.47 billion yuan, up 1.08% year-on-year [11]. - The second quarter of 2024 saw a revenue of 66.21 billion yuan, a decrease of 3.02% year-on-year, and a net profit of 18.92 billion yuan, down 9.75% year-on-year [11]. - The gross profit margin for Q2 2024 was 73.67%, a decline of 1.40 percentage points year-on-year, attributed to increased promotional expenses [11]. - The company’s revenue from liquor in H1 2024 was 224.91 billion yuan, with a year-on-year growth of 4.82% [11]. Market Position and Strategy - The company is focusing on expanding its presence outside its home province, with revenue from provincial and non-provincial sales showing different growth rates [11]. - The company has increased its number of distributors in non-provincial areas, indicating a strategic push for market expansion [11].