WLY(SZ:000858) SINOLINK SECURITIES·2024-10-31 06:58Investment Rating - The report maintains a "Buy" rating for the company [3][6]. Core Views - The company's performance in Q3 2024 met expectations, with revenue of 67.92 billion RMB, a year-on-year increase of 8.6%, and a net profit attributable to shareholders of 24.93 billion RMB, up 9.2% year-on-year. The Q3 revenue was 17.27 billion RMB, reflecting a 1.4% year-on-year growth, while the net profit was 5.87 billion RMB, a 1.3% increase year-on-year [4]. - The company plans to increase its cash dividend payout ratio to no less than 70% and at least 20 billion RMB (before tax) for the years 2024-2026 [4]. - The company is expected to achieve stable growth through controlled product launches and channel adjustments, despite some pressure on high-end liquor sales during the festive season [5]. Summary by Sections Performance Analysis - In Q3 2024, the company maintained a balanced approach to product launches, focusing on high-demand products while controlling the supply of mainstream products. The gross profit margin remained stable, and the sales expense ratio increased by 2.8 percentage points [5]. - The net profit margin for Q3 2024 was 34.0%, consistent with the previous year, while the management expense ratio saw a slight increase of 0.2 percentage points [5]. - The company reported a cash dividend rate increase to 70%, with an expected dividend yield of 4.0% for 2024 [5]. Profit Forecast and Valuation - Revenue projections for 2024-2026 are expected to grow by 9.4%, 8.0%, and 7.9%, respectively, while net profit is projected to increase by 10.3%, 8.6%, and 8.8% for the same period. The estimated earnings per share (EPS) are 8.58, 9.32, and 10.14 RMB [6]. - The current price-to-earnings (P/E) ratios are projected to be 17.3, 16.0, and 14.7 for 2024, 2025, and 2026, respectively, supporting the "Buy" rating [6].