YINGJIA DISTILLERY(SH:603198) Huaxin Securities·2025-05-12 07:20Investment Rating - The report maintains a "Buy" investment rating for the company [1][9] Core Insights - The company's Q1 performance faced slight pressure, but overall profitability continues to improve. Total revenue and net profit for 2024 were 73.44 billion and 25.89 billion yuan, respectively, with year-on-year growth of 9% and 13% [5] - The company is experiencing a stable growth in its product structure, with mid-to-high-end liquor revenue increasing by 13.76% while ordinary liquor revenue decreased by 6.53% in 2024 [6] - The company is expected to maintain its competitive advantages in product strength, brand power, and channel distribution, leading to continuous profit growth in the coming years [9] Summary by Sections Financial Performance - Q1 2025 revenue was 20.47 billion yuan, down 12% year-on-year, while net profit was 8.29 billion yuan, down 9% year-on-year. The gross margin for Q1 2025 was 76%, up 1.4 percentage points year-on-year [5] - The company's operating cash flow for 2024 was 19.07 billion yuan, down 13% year-on-year, while sales collection was 78.34 billion yuan, up 3% year-on-year [5] Product and Market Analysis - In 2024, the revenue from mid-to-high-end liquor was 57.13 billion yuan, with a gross margin of 81.07%, while ordinary liquor revenue was 12.89 billion yuan, with a gross margin of 57.93% [6] - Revenue from direct sales (including group purchases) increased by 34.62% to 4.45 billion yuan, while wholesale and agency revenue grew by 8.01% to 65.57 billion yuan [6] Earnings Forecast - The company is projected to have EPS of 3.26, 3.53, and 3.85 yuan for 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 14, 13, and 12 times [9][11]