LZLJ(SZ:000568) Shanxi Securities·2025-11-04 12:06Investment Rating - The report assigns a "Buy-A" rating for Luzhou Laojiao (000568.SZ) [3][6] Core Views - The company reported a decline in Q3 performance, with revenue and net profit for the first three quarters of 2025 at 231.27 billion yuan and 107.62 billion yuan, respectively, representing year-on-year decreases of 4.84% and 7.17% [3][4] - The report anticipates continued pressure in Q4, but notes that the decline in performance was better than market expectations [4] - The company is expected to benefit from a recovery in the liquor industry as it enters a destocking phase, with stable management and organizational structure [6] Financial Performance Summary - For the first three quarters of 2025, the company achieved a revenue of 231.27 billion yuan and a net profit of 107.62 billion yuan, with Q3 figures showing a revenue of 66.74 billion yuan and a net profit of 30.99 billion yuan, both down year-on-year by 9.80% and 13.07% respectively [4][5] - The sales net profit margin and gross profit margin for the first three quarters were 46.67% and 87.11%, showing a slight decline compared to the previous year [5] - Cash flow from operations in Q3 was 37.58 billion yuan, down 11.16% year-on-year, with a slight increase in contract liabilities [5] Earnings Forecast and Valuation Analysis - The report forecasts net profits for the company from 2025 to 2027 to be 123.51 billion yuan, 124.91 billion yuan, and 137.99 billion yuan, with corresponding EPS of 8.39 yuan, 8.49 yuan, and 9.37 yuan [6][8] - The projected P/E ratios for the same period are 16 times, 15.9 times, and 14.4 times, indicating a favorable valuation compared to current market conditions [6][8]