YUNNAN BAIYAO(SZ:000538) Haitong Securities·2024-11-18 01:23Investment Rating - The investment rating for Yunnan Baiyao is "Outperform the Market" [2] Core Views - The company reported a steady performance with a revenue of 29.915 billion yuan for the first three quarters of 2024, a year-on-year increase of 0.76%, and a net profit attributable to shareholders of 4.327 billion yuan, up 4.93% year-on-year [5][6] - The company announced a special dividend, distributing 12.13 yuan per 10 shares, totaling 2.164 billion yuan, which represents 50.02% of the net profit for the first three quarters of 2024, enhancing shareholder returns [6] - The first major shareholder, Yunnan State-owned Assets Management Company, plans to increase its stake by investing between 500 million yuan and 1 billion yuan, reflecting confidence in the company's future development [6] Financial Performance - For the first three quarters of 2024, the gross profit margin was 28.40%, an increase of 1.03 percentage points year-on-year, while the net profit margin rose to 14.47%, up 0.59 percentage points year-on-year [6] - The company expects net profits for 2024-2026 to be 4.572 billion yuan, 5.084 billion yuan, and 5.519 billion yuan, with growth rates of 11.7%, 11.2%, and 8.6% respectively [7][12] - The projected earnings per share (EPS) for 2024-2026 are 2.56 yuan, 2.85 yuan, and 3.09 yuan [7][12] Market Comparison - The stock price as of November 15, 2024, was 58.94 yuan, with a 52-week price range of 44.88-67.10 yuan [2] - The company is expected to trade at a price-to-earnings (P/E) ratio of 23-28 times, corresponding to a fair value range of 58.88-71.68 yuan [7]