WLY(SZ:000858)2024-11-04 01:30Investment Rating - The report maintains a "Buy" rating for the company, Wuliangye [1][2]. Core Views - The company has adjusted its operational pace, which has positively impacted shareholder confidence. The announcement of a shareholder return plan for 2024-2026 is expected to enhance investor sentiment [1]. - Despite a short-term pressure on the external consumption environment, the long-term development of the leading brand is viewed positively [1]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported revenue of RMB 67.92 billion, a year-on-year increase of 8.6%, and a net profit attributable to shareholders of RMB 24.93 billion, up 9.2%. In Q3 2024, revenue and net profit were RMB 17.27 billion and RMB 5.87 billion, respectively, reflecting year-on-year growth of 1.4% and 1.3% [1][5]. - The company's gross margin improved by 2.8 percentage points year-on-year to 76.2% in Q3 2024, attributed to the execution of new pricing policies by distributors [1][5]. Shareholder Returns - The company announced a shareholder return plan for 2024-2026, committing to a cash dividend of no less than 70% of the annual net profit, with a minimum of RMB 20 billion each year. This represents a significant increase in the dividend payout ratio compared to previous years [1][4]. Revenue and Profit Forecast - The report has adjusted its revenue forecasts for 2024-2026, expecting year-on-year growth rates of 8.1%, 5.7%, and 8.0%, respectively. Net profit is projected to grow by 8.0%, 5.6%, and 8.3% over the same period [1][4]. - The earnings per share (EPS) estimates for 2024, 2025, and 2026 are RMB 8.40, RMB 8.87, and RMB 9.61, respectively, with corresponding price-to-earnings (PE) ratios of 17.5X, 16.5X, and 15.3X [1][4]. Market Position - The company is recognized as a leading brand in the liquor industry, and its proactive adjustments in product distribution and marketing strategies are expected to support its market position in the long term [1][2].