LAO BAI GAN JIU(SH:600559) Minsheng Securities·2024-10-31 09:12Investment Rating - The report maintains a "Recommended" rating for the company [1][3]. Core Views - The company has achieved a revenue of 4.09 billion yuan in the first three quarters of 2024, representing a year-on-year increase of 6.3%, with a net profit attributable to shareholders of 560 million yuan, up 33.0% year-on-year [1]. - The company continues to optimize its product structure, with products priced above 100 yuan generating 2.04 billion yuan in revenue, a year-on-year increase of 15.7% [1]. - The company is focused on its dual-brand strategy of "Hengshui Laobai Gan" and "Shibajiu Fang," aiming to enhance market penetration in high-end products [1]. Financial Performance - For Q3 2024, the company reported revenue of 1.62 billion yuan, a slight increase of 0.3% year-on-year, and a net profit of 250 million yuan, up 25.2% year-on-year [1]. - The gross profit margin for the first three quarters of 2024 was 66.2%, a decrease of 0.5 percentage points year-on-year, while the net profit margin improved to 13.6%, an increase of 2.7 percentage points year-on-year [1]. - The company expects revenues of 5.6 billion, 6.17 billion, and 6.91 billion yuan for 2024, 2025, and 2026 respectively, with net profits projected at 868 million, 1.09 billion, and 1.31 billion yuan [2][4]. Market and Competitive Position - The company has seen strong growth in various regions, with Hebei achieving 2.34 billion yuan in revenue, a year-on-year increase of 9.1%, and Shandong showing a significant increase of 33.6% [1]. - The company has increased its number of distributors in Hebei to 1,901, while reducing the number in Hunan to 8,485, indicating a strategic focus on regional strengths [1]. - The company is actively pursuing cost control and efficiency improvements, which are expected to enhance its earnings elasticity [1].