Yanghe(SZ:002304) Soochow Securities·2025-05-06 06:54Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is undergoing proactive adjustments while awaiting operational improvements. The white liquor industry is entering a phase of stock competition, with significant pressure on mid-range and premium products. The company is actively adjusting its operational strategies and strengthening its management [7][8] - In 2024, the company reported total revenue of 28.76 billion yuan, a year-on-year decrease of 12.83%, and a net profit attributable to shareholders of 6.67 billion yuan, down 33.37% year-on-year. The fourth quarter of 2024 saw revenue of 1.36 billion yuan, a decline of 52.17% year-on-year [7][8] - The company plans to focus on the Jiangsu and surrounding markets to build a solid foundation for growth, as revenue from both domestic and external markets declined [7][8] - The company is expected to maintain a cash dividend of no less than 70% of the net profit attributable to shareholders, with a projected total cash dividend of at least 7 billion yuan for 2024, corresponding to a dynamic dividend yield of over 6.5% [7][8] Financial Summary - The company's total revenue is projected to decline from 28.76 billion yuan in 2024 to 24.47 billion yuan in 2025, with a gradual recovery expected in subsequent years [1][8] - The net profit attributable to shareholders is forecasted to decrease from 6.67 billion yuan in 2024 to 5.46 billion yuan in 2025, with a slight recovery in 2026 and 2027 [1][8] - The earnings per share (EPS) is expected to drop from 4.43 yuan in 2024 to 3.62 yuan in 2025, with a gradual increase thereafter [1][8] - The price-to-earnings (P/E) ratio is projected to be 18.93 for 2025, 18.27 for 2026, and 17.52 for 2027, indicating a potential for value recovery in the coming years [1][8]