Vats Liquor Chain Store Management Joint Stock (300755) Huaxin Securities·2024-10-29 05:30Investment Rating - The report maintains a "Buy" investment rating for the company [4] Core Views - The company is experiencing a phase of performance pressure due to product structure adjustments, with a notable decline in profitability and revenue [2][3] - The overall revenue for the first three quarters of 2024 is reported at 7.832 billion, a decrease of 5.10% year-on-year, while the net profit attributable to shareholders is 168 million, down 27.36% year-on-year [2] - The report highlights that the decline in gross margin is attributed to changes in product structure and a reduction in government subsidies affecting non-recurring gains [2][3] Summary by Sections Financial Performance - For Q1-Q3 2024, total revenue is 7.832 billion (down 5.10% YoY), with a net profit of 168 million (down 27.36% YoY) and a non-recurring net profit of 149 million (down 15.24% YoY) [2] - In Q3 2024, total revenue is 1.889 billion (down 20.84% YoY), with a net profit of 13 million (down 84.17% YoY) and a non-recurring net profit of 12 million (down 64.64% YoY) [2] - The gross margin for Q1-Q3 2024 is 10.02%, down 0.98 percentage points YoY, while for Q3 it is 8.50%, down 1.93 percentage points YoY [2] Product Performance - The report indicates stable performance in standard products, with notable sales in Wuliangye and Moutai, while the overall demand for premium products is slightly weak [3] - The company is increasing promotional efforts to boost sales of customized products, which has impacted gross margins [3] Profit Forecast - The short-term growth focus is on increasing the proportion of premium products and leveraging scale effects for profitability improvement [4] - The EPS forecast for 2024-2026 has been adjusted to 0.44, 0.66, and 0.89 respectively, with corresponding PE ratios of 42, 28, and 21 times [4]