WLY(SZ:000858) Tebon Securities·2024-09-01 10:31Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company reported a steady growth in performance, with H1 2024 achieving operating revenue of 50.648 billion yuan, a year-on-year increase of 11.30%, and a net profit attributable to shareholders of 19.057 billion yuan, up 11.86% year-on-year [6] - The focus on mid-to-high price products has led to significant sales growth, with the main product, Wuliangye, achieving revenue of 39.205 billion yuan, a year-on-year increase of 11.45% [6] - The company has successfully implemented a flat recruitment strategy, resulting in a notable increase in the number of distributors and sales channels [7] - The gross margin and net margin both improved, with Q2 2024 gross margin at 75.01% and net margin at 32.82% [7] - The company is expected to achieve operating revenues of 91.649 billion yuan, 100.960 billion yuan, and 112.528 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 10.1%, 10.2%, and 11.5% [9] Summary by Sections Financial Performance - In H1 2024, the company achieved operating revenue of 50.648 billion yuan, with a net profit of 19.057 billion yuan, reflecting a year-on-year increase of 11.30% and 11.86% respectively [6] - The Q2 2024 results showed operating revenue of 15.815 billion yuan, a 10.08% increase year-on-year, and a net profit of 5.012 billion yuan, up 11.50% year-on-year [6] Product and Sales Strategy - The company has concentrated on mid-to-high price products, with Wuliangye and other liquor products generating revenues of 39.205 billion yuan and 7.906 billion yuan respectively, marking increases of 11.45% and 17.77% year-on-year [6] - Sales volume for Wuliangye reached 24.2 thousand tons, up 12.07% year-on-year, while other liquor products saw a decline in sales volume by 23.86% [6] Market and Distribution - The company increased its number of distributors significantly, with 98 new Wuliangye distributors and 268 new Wuliangye fragrant liquor distributors added in H1 2024 [7] - Revenue from distribution and direct sales reached 27.594 billion yuan and 19.517 billion yuan respectively, with year-on-year growth of 13.51% and 11.01% [7] Profitability and Financial Health - The gross margin for Q2 2024 was reported at 75.01%, an increase of 1.74 percentage points year-on-year, while the net margin was 32.82%, up 0.20 percentage points [7] - The company’s contract liabilities increased to 8.158 billion yuan, indicating strong confidence from distributors [7] Future Projections - The company forecasts operating revenues of 91.649 billion yuan for 2024, with a year-on-year growth rate of 10.1%, and net profit of 33.820 billion yuan, reflecting an 11.9% increase [9]