YINGJIA DISTILLERY(SH:603198) Orient Securities·2025-05-03 02:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 57.29 CNY based on a reasonable valuation level of 17 times the earnings for 2025 [3][11]. Core Views - Short-term growth is under pressure, but the company is expected to achieve healthy long-term growth [2]. - The company has adjusted its revenue forecasts downward for 2025-2026 while raising gross margin and expense ratios [3]. - The company’s earnings per share (EPS) are projected to be 3.37 CNY, 3.91 CNY, and 4.46 CNY for 2025, 2026, and 2027 respectively [3][11]. Financial Performance Summary - In 2023, the company achieved a revenue of 6,771 million CNY, with a year-on-year growth of 23.0%. For 2024, the revenue is expected to be 7,344 million CNY, reflecting an 8.5% growth [8]. - The net profit attributable to the parent company for 2023 was 2,282 million CNY, with a year-on-year increase of 33.9%. The forecast for 2024 is 2,589 million CNY, a growth of 13.4% [8]. - The gross margin for 2024 is projected to be 73.9%, up from 71.0% in 2023, indicating an improvement in profitability [10][8]. Revenue Breakdown - For 2024, the company expects mid-to-high-end liquor revenue to reach 57.1 billion CNY, a year-on-year increase of 13.8%. However, ordinary liquor revenue is projected to decline by 6.5% to 12.9 billion CNY [10]. - In Q1 2025, the company reported a revenue of 20.5 billion CNY, down 12.3% year-on-year, primarily due to an earlier Spring Festival and weak consumer demand [10]. Market Position and Strategy - The company has a total of 1,379 distributors as of Q1 2025, indicating stable channel management [10]. - The company’s regional performance shows that domestic market revenue is 50.9 billion CNY, growing by 12.8% year-on-year, while revenue from outside the province is 19.1 billion CNY, with a modest growth of 1.3% [10].