King's Luck(SH:603369) Guohai Securities·2025-03-11 13:39Investment Rating - The report maintains a "Buy" rating for the company, indicating strong growth potential and confidence in its market position [7]. Core Insights - The company has successfully crossed the 10 billion yuan revenue mark in 2023, with a strong growth momentum reflected in its performance in the first three quarters of 2024, where revenue and net profit increased by 18.85% and 17.08% respectively [15][25]. - The company is well-positioned in the second-high-end liquor market, with its core product, the Guo Yuan series, strategically targeting the 300-600 yuan price range, which has shown strong competitive advantages [4][46]. Summary by Sections 1. Strong Growth Momentum - The company is among the top ten listed liquor companies in China, focusing on the "Yuan" culture in its marketing strategy, which enhances brand recognition [4][15]. - The Jiangsu liquor market is robust, with the company benefiting from a favorable consumption environment and a significant market share alongside its competitors [4][32]. 2. Market Structure and Potential - Jiangsu's liquor market is the second largest in China, with a strong consumption atmosphere and high demand for premium products [32][33]. - The company has established a strong presence in key markets such as Nanjing and Huai'an, with significant growth potential in the Suzhong and Susou regions [4][37]. 3. Product Strategy and Optimization - The company has effectively positioned its core products in the next-high-end price segment, with a focus on expanding its product range to meet consumer demand [4][46]. - The introduction of the Guo Yuan V series and other high-end products is expected to drive future growth, with a clear strategy for market penetration and brand development [49][53]. 4. Financial Projections - The company forecasts revenue growth from 116.53 billion yuan in 2024 to 141.77 billion yuan in 2026, with net profit expected to rise from 34.71 billion yuan to 41.33 billion yuan over the same period [6][7]. - The earnings per share (EPS) is projected to increase from 2.78 yuan in 2024 to 3.32 yuan in 2026, reflecting a strong financial outlook [6][7].