LZLJ(SZ:000568) Haitong Securities·2024-09-01 04:40Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company reported a strong performance in its 2024 half-year report, achieving total revenue of 16.905 billion yuan, a year-on-year increase of 15.8%, and a net profit attributable to the parent company of 8.028 billion yuan, up 13.2% year-on-year [6] - The mid-to-high-end liquor segment performed well, with revenue growth of 17.1% year-on-year, driven by strong sales of products like Tequ [6] - The company plans to continue expanding its market presence and implement digital marketing strategies [6] Summary by Sections Financial Performance - In Q2 2024, the company achieved total revenue of 7.716 billion yuan, a year-on-year increase of 10.5%, and a net profit of 3.454 billion yuan, up 2.2% year-on-year [6] - The gross margin for H1 2024 increased by 0.22 percentage points to 88.6% [6] - Cash flow performance was strong, with operating cash flow increasing by 45.6% to 8.225 billion yuan [6] Product and Market Strategy - The company plans to implement a "Hundred Cities" initiative to enhance market penetration and improve its digital marketing approach [6] - The number of distributors increased by 47 to 1,861 in H1 2024, indicating a robust expansion strategy [6] Profitability and Cost Management - The company maintained good control over operating expenses, with the expense ratio decreasing by 0.96 percentage points to 12.3% [7] - The net profit margin for H1 2024 was 47.5%, down 1.10 percentage points year-on-year, primarily due to tax payment timing and reduced investment income [7] Earnings Forecast - The company is expected to have EPS of 10.41, 12.07, and 13.82 yuan for 2024, 2025, and 2026 respectively [7] - The target price range for the stock is set between 208.11 and 260.14 yuan based on a PE ratio of 20-25x for 2024 [7]