GUJING(SZ:000596) Huachuang Securities·2024-10-31 12:30Investment Rating - The report maintains a "Strong Buy" rating for Gujing Gongjiu (000596) with a target price of 300 RMB [1]. Core Views - The company's performance in Q3 2024 shows resilience, with revenue of 5.26 billion RMB, a year-on-year increase of 13.4%, and a net profit of 1.17 billion RMB, up 13.6% year-on-year. The overall revenue for the first three quarters reached 19.07 billion RMB, reflecting a 19.5% increase compared to the previous year [1]. - The report highlights the company's strong brand position in the domestic market, effective marketing strategies, and a focus on improving cash flow and profitability, indicating a positive outlook for continued double-digit growth in the coming years [1]. Summary by Sections Financial Performance - For Q3 2024, the company achieved a revenue of 5.26 billion RMB, a 13.4% increase year-on-year, and a net profit of 1.17 billion RMB, up 13.6% year-on-year. The total revenue for the first three quarters was 19.07 billion RMB, with a 19.5% year-on-year growth. The operating cash flow for Q3 was 1.33 billion RMB, reflecting a 34.6% increase [1]. - The company's gross profit margin decreased by 1.6 percentage points in Q3, attributed to adjustments in product structure and faster turnover of base products. However, the net profit margin slightly improved by 0.05 percentage points [1]. Market Position and Strategy - Gujing Gongjiu maintains a leading position among Huizhou liquor companies, benefiting from strong brand recognition and a robust distribution network. The company is focusing on enhancing its market share in the domestic market while managing inventory levels effectively [1]. - The report emphasizes the company's strategic focus on domestic market penetration and the development of tactical products to enhance channel profitability, which is expected to support sustained revenue growth [1]. Future Outlook - The company is projected to achieve a revenue of 24.47 billion RMB in 2024, with a year-on-year growth rate of 20.8%. The net profit is expected to reach 5.77 billion RMB, reflecting a 25.6% increase [1]. - The report anticipates that the company will continue to experience double-digit growth in the coming years, driven by its strong domestic brand position and effective marketing strategies [1].