King's Luck(SH:603369) EBSCN·2024-09-24 02:11Investment Rating - The report maintains a "Buy" rating for the company [1][4][8] Core Views - The company is focusing on capacity expansion and enhancing its intelligent production capabilities, with total production capacity expected to reach 80,000 tons by the end of 2024, doubling from the end of 2023 [1][2] - The company has established a strong competitive position in the mid-range high-end liquor market, with its "Guoyuan" brand becoming a leading brand in Jiangsu province [1][2] - The company is actively launching high-end products, including the new "Nongxiang Classic·Guoyuan 2049," which will be unveiled at the Shanghai Wine Expo [1][2] Summary by Sections Production Capacity and Technological Advancement - As of the end of 2023, the company's liquor production capacity reached 40,000 tons per year, with plans to expand to 60,000 tons following the launch of a new 20,000-ton production line [1] - The company aims to achieve over 100,000 tons of raw liquor capacity during the 14th Five-Year Plan period, with a storage capacity of 600,000 tons in ceramic jars [1] Market Position and Product Strategy - The "Guoyuan" brand has become the leading brand in the mid-range high-end liquor segment, with significant sales growth in the 500 yuan price range [1] - The company plans to optimize its product structure, focusing on the 600-800 yuan price range in the Yangtze River Delta region and nurturing high-end consumer groups for its "V9" product [1][2] Financial Forecast and Valuation - The report forecasts net profits for 2024-2026 to be 39.61 billion, 48.65 billion, and 57.22 billion yuan, respectively, with corresponding EPS of 3.16, 3.88, and 4.56 yuan [1][3] - The current stock price corresponds to P/E ratios of 12, 10, and 8 for the years 2024, 2025, and 2026, respectively [1][3]