WLY(SZ:000858)2024-09-02 11:00Investment Rating - The report assigns a strong investment rating to Wuliangye, indicating it as a leading company in the liquor sector with a high market value and consistent performance [1]. Core Insights - Wuliangye has demonstrated stable growth with a revenue of 50.648 billion and a net profit of 19.057 billion in the first half of 2024, both achieving double-digit growth year-on-year [6]. - The company has maintained a two-digit growth rate in revenue and net profit for nine consecutive years, with a compound annual growth rate (CAGR) of 18.33% and 21.95% respectively [6]. - The high-end product line remains the cornerstone of the company's performance, contributing 77.41% of total revenue, with a year-on-year growth of 11.45% [7]. - Wuliangye is actively diversifying its product offerings to cater to various consumer segments, launching several new high-end products in 2023 and 2024 [8]. - The company is expanding its distribution channels, with a significant increase in both direct sales and dealer networks, reflecting strong market confidence [10]. - Wuliangye's cash flow has reached a record high, with net cash inflow from operating activities of 13.428 billion, marking an 18.52% increase year-on-year [11]. - The company has a robust dividend policy, with cumulative cash dividends of 94.1 billion, representing 46.75% of total net profit since its listing [13]. - The current dividend yield exceeds 4.3%, with a price-to-earnings ratio (PE) of 14 times, indicating attractive investment value [14]. Summary by Sections 1. Steady Growth Momentum - In the first half of 2024, Wuliangye achieved a revenue of 50.648 billion, a year-on-year increase of 11.30%, and a net profit of 19.057 billion, up 11.86% [6]. - The company has consistently achieved double-digit growth in revenue and net profit for eight years prior, with respective CAGRs of 18.33% and 21.95% [6]. 2. Product Development and Brand Strength - The high-end series of Wuliangye products accounted for 77.41% of total revenue, with a year-on-year growth of 11.45% [7]. - New product launches include the "Purple Qi Dong Lai" series and various high-end offerings, enhancing brand visibility and market presence [8]. - The brand value has seen continuous double-digit growth, nearing 450 billion, ranking 15th in the "2024 China 500 Most Valuable Brands" list [8]. 3. Channel Expansion - Sales expenses increased by 24.21% to 5.366 billion, with a sales expense ratio of 10.60% [9]. - The dealer network expanded significantly, with a net increase of 98 dealers, bringing the total to 2,530 [10]. 4. Cash Flow and Dividend Policy - Operating cash flow reached a new high of 13.428 billion, with a free cash flow of 12.341 billion, indicating strong cash generation capabilities [11][12]. - The company has maintained a high dividend payout, with a dividend rate of 60% for 2023, reflecting its commitment to returning value to shareholders [13].