Kouzijiao(603589) 西南证券·2024-09-01 06:03Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported stable revenue growth in H1 2024, achieving revenue of 3.17 billion yuan, a year-on-year increase of 8.7%, and a net profit attributable to shareholders of 950 million yuan, up 11.9% year-on-year [2] - The introduction of the "Jian 8" series has contributed to revenue growth, particularly in the Anhui market, which shows resilience in liquor consumption [2][3] - The company's gross margin improved significantly, rising 4.5 percentage points to 75.0% in Q2 2024, while net profit margin increased by 2.1 percentage points to 25.7% [3] - The company is expected to benefit from the active economy in Anhui and the ongoing upgrade in banquet and gift consumption, with a focus on marketing reforms [3] Summary by Sections Financial Performance - In Q2 2024, the company achieved revenue of 1.4 billion yuan, a year-on-year increase of 5.9%, and a net profit of 360 million yuan, up 15.1% year-on-year [2] - The revenue breakdown shows high-end liquor revenue at 1.3 billion yuan, up 3.5% year-on-year, while mid-range and low-end liquor revenues grew by 4.0% and 16.6% respectively [2] - The company's cash flow faced temporary pressure, with cash receipts from sales at 1.39 billion yuan, down 4.4% year-on-year [3] Market Strategy - The company is focusing on expanding the "Jian" series, aligning its pricing with competitors and enhancing brand influence through events and consumer engagement [3] - The company is strengthening its distribution channels, particularly in county and town markets, and implementing differentiated assessment systems for sales personnel [3] Earnings Forecast - The expected EPS for 2024, 2025, and 2026 are 3.39 yuan, 3.92 yuan, and 4.38 yuan respectively, with corresponding dynamic PE ratios of 10x, 9x, and 8x [3]