YINGJIA DISTILLERY(SH:603198) Soochow Securities·2024-10-30 12:19Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a revenue of 5.51 billion yuan and a net profit of 2.01 billion yuan for the first three quarters of 2024, representing year-on-year growth of 13.8% and 20.2% respectively [2] - In Q3 2024, the company achieved a revenue of 1.73 billion yuan and a net profit of 630 million yuan, with year-on-year growth of 1.6% and 3.7% respectively, indicating a moderate slowdown in revenue due to proactive inventory reduction in the distribution channels [2][3] - The company’s mid-to-high-end liquor revenue increased by 18.6% year-on-year in the first three quarters, with the estimated growth rate for the cave-aged series around 25% [3] - The company’s gross profit margin improved by 4.2 percentage points year-on-year in Q3, attributed to product mix enhancement and cost optimization [4] Summary by Sections Revenue and Profitability - Total revenue for 2022 was 5.505 billion yuan, increasing to 6.720 billion yuan in 2023, with an expected rise to 7.716 billion yuan in 2024, reflecting a year-on-year growth rate of 19.59%, 22.07%, and 14.82% respectively [1] - Net profit attributable to the parent company was 1.705 billion yuan in 2022, projected to reach 2.737 billion yuan in 2024, with growth rates of 22.97%, 34.17%, and 19.64% for the respective years [1] Market Position and Strategy - The company is focusing on core consumers and key retail outlets to enhance its market presence, particularly in the cave-aged series, which is gaining traction in the provincial market [5] - The company is experiencing a shift in consumer spending towards higher price points, with significant growth in the 100 yuan and above price segments [5] Financial Forecasts - The forecast for net profit for 2024-2026 has been adjusted to 2.74 billion, 3.27 billion, and 4.00 billion yuan respectively, with corresponding P/E ratios of 18.6, 15.5, and 12.7 [5]