WLY(SZ:000858) Huafu Securities·2024-09-02 12:30Investment Rating - The report maintains a "Buy" rating for Wuliangye [3][10]. Core Views - Wuliangye achieved total revenue of 50.648 billion yuan in H1 2024, representing a year-on-year growth of 11.30%, and a net profit attributable to shareholders of 19.057 billion yuan, up 11.86% year-on-year [1]. - The company successfully implemented a pricing strategy for its flagship product, "Pu Wuliang," resulting in stable prices and an upgrade in product mix, particularly with high-priced products [1]. - The report forecasts net profits for 2024-2026 to be 33.665 billion, 37.580 billion, and 41.564 billion yuan respectively, with a slight adjustment from previous estimates [2]. Financial Performance Summary - In H1 2024, Wuliangye's product revenue reached 39.205 billion yuan, a year-on-year increase of 11.45% [1]. - The sales volume and price per ton for Wuliangye products in H1 2024 increased by 12.07% and decreased by 0.56% respectively, leading to a slight decline in gross margin [1]. - The company reported a gross margin of 75.02% in Q2 2024, an increase of 1.74 percentage points year-on-year, and a net profit margin of 32.82%, up 0.21 percentage points year-on-year [2]. Regional Performance - Revenue from different regions in H1 2024 showed varied growth, with the Eastern region achieving 13.552 billion yuan (up 15.70%), while the Southern region saw a slight decline of 0.58% [1]. Expense and Profitability Analysis - The overall expense ratio increased by 1.84 percentage points in H1 2024, primarily due to increased marketing investments [2]. - The report highlights that the sales expense ratio rose to 17.34%, reflecting a 1.97 percentage point increase year-on-year, driven by promotional activities [2].