WLY(SZ:000858) Huaxin Securities·2025-05-07 06:24Investment Rating - The report maintains a "Buy" investment rating for the company [1][8] Core Views - The company's Q1 performance slightly exceeded expectations, with strong sales collection [5] - The company is focusing on channel reform to enhance its market position [1][5] - The main brand is developing multiple product lines while creating flagship products in other liquor categories [6] - The company is expected to maintain its pricing strategy and restore channel confidence, leading to a recovery in brand value [8] Financial Performance - In 2024, total revenue and net profit attributable to shareholders were 891.75 billion and 318.53 billion yuan, respectively, representing year-on-year growth of 7% and 5% [5] - Q1 2025 revenue and net profit attributable to shareholders were 369.40 billion and 148.60 billion yuan, both showing a year-on-year increase of 6% [5] - The gross margin for 2024 was 77%, with a slight year-on-year increase, while the net margin was 37%, showing a slight decline [5] - The company reported a significant increase in operating cash flow in Q1 2025, with a year-on-year growth of 2970% [5] Product Development - In 2024, liquor revenue reached 831.27 billion yuan, with the main product line contributing 678.75 billion yuan, reflecting an 8.07% increase [6] - The company launched new products in the 45-degree and 68-degree categories, expanding its product matrix [6] - The average price of the main products increased slightly, contributing to overall revenue growth [6] Regional Performance - Revenue from the Eastern, Southern, and Northern regions in 2024 was 312.90 billion, 393.36 billion, and 125.01 billion yuan, respectively, with the Eastern and Southern regions showing stable growth [7] - The number of distributors for the main brand and its sub-brands increased significantly, indicating a successful expansion strategy [7] Earnings Forecast - The company is projected to have EPS of 8.67, 9.26, and 10.00 yuan for 2025, 2026, and 2027, respectively, with corresponding PE ratios of 15, 14, and 13 times [8][10]