Yanjing Brewery(SZ:000729) Minsheng Securities·2024-10-26 13:30Investment Rating - The report maintains a "Recommended" rating for the company [4][6]. Core Views - The company has shown resilience with sales outperforming the market, and profits are steadily improving. The revenue for the first three quarters of 2024 reached 12.88 billion yuan, a year-on-year increase of 34.73% [3]. - The U8 product line continues to perform well, contributing to the company's growth strategy. The company is also benefiting from a high proportion of non-current channel sales, which mitigates the impact of weak demand in on-premise consumption scenarios [3][4]. - Cost management has improved, leading to better gross profit margins. The gross margin for Q3 2024 was 47.99%, with a slight year-on-year increase [3][4]. Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 12.88 billion yuan, with a year-on-year growth of 3.47%. The net profit attributable to shareholders was 12.61 billion yuan, up 34.73% year-on-year [3]. - In Q3 2024, the company reported revenue of 5.30 billion yuan, a year-on-year increase of 19.84%, and a net profit of 5.20 billion yuan, reflecting a growth of 21.68% [3]. - The company expects revenue growth of 6.7%, 5.8%, and 5.4% for the years 2024, 2025, and 2026, respectively, with net profits projected to grow by 63.7%, 34.3%, and 25.4% in the same period [4][5]. Future Outlook - The company is optimistic about its profit margin elasticity due to ongoing reforms and the successful rollout of the U8 product line. The national expansion strategy for U8 is expected to continue driving growth [4]. - The company plans to enhance operational efficiency and optimize its supply chain, which is anticipated to further improve profit margins [4].