YINGJIA DISTILLERY(603198) Orient Securities·2024-10-31 00:10Investment Rating - The report maintains a "Buy" rating for the company with a target price of 69.20 CNY based on a 20x P/E ratio for 2024 [2][4][7]. Core Insights - The company reported a revenue of 5.51 billion CNY for the first three quarters of 2024, representing a year-on-year increase of 13.8%, and a net profit attributable to the parent company of 2.01 billion CNY, up 20.2% year-on-year [1]. - In Q3 alone, the company achieved a revenue of 1.73 billion CNY (+1.6% YoY) and a net profit of 630 million CNY (+3.7% YoY) [1]. - The performance of mid-to-high-end liquor segments remains strong, with revenues of 4.25 billion CNY (+19% YoY) for the first three quarters, while ordinary liquor saw revenues of 1.01 billion CNY (+2% YoY) [1]. - The gross margin for the first three quarters of 2024 was 74.3%, an increase of 2.7 percentage points year-on-year, indicating improved profitability [1]. - The company has maintained a stable number of distributors, with 782 in the domestic market and 640 in the external market as of Q3 2024 [1]. Financial Summary - The company’s projected earnings per share (EPS) for 2024, 2025, and 2026 are 3.46 CNY, 4.20 CNY, and 4.92 CNY respectively [2][3]. - The revenue forecast for 2024 is set at 7.695 billion CNY, with a projected growth rate of 14.5% [3]. - The gross margin is expected to improve to 72.6% in 2024, with net profit margins projected at 36.0% [3]. - The company’s net asset return (ROE) is forecasted to be 28.5% in 2024 [3].