SCSF(SH:600779) Huaxin Securities·2024-02-05 16:00Investment Rating - The report maintains a "Buy" investment rating for the company [5] Core Views - The chairman's proposal for share buyback aims to boost investor confidence, with a total share capital of 488 million shares and a buyback price not exceeding 150% of the average trading price over the last 30 trading days [3][5] - The company is expected to have a positive performance in Q1, driven by a low base from the previous year and product price increases, along with a favorable timing compared to other liquor companies [4] - The company is focusing on the growth of its premium product "Zhen Niang No. 8" and long-term brand development, targeting the top eight core markets to establish itself as a leading brand in the fragrant liquor segment [5] Financial Projections - The company’s revenue is projected to grow from 4,953 million yuan in 2023 to 6,397 million yuan in 2025, reflecting a growth rate of 14.3% in 2024 and 13.0% in 2025 [6] - The net profit attributable to shareholders is expected to increase from 1,267 million yuan in 2023 to 1,690 million yuan in 2025, with growth rates of 4.2% in 2023, 15.6% in 2024, and 15.5% in 2025 [6] - The diluted earnings per share (EPS) are forecasted to rise from 2.59 yuan in 2023 to 3.46 yuan in 2025, with corresponding price-to-earnings (P/E) ratios of 16, 14, and 12 times [5][6] Market Data - As of February 5, 2024, the current stock price is 42.59 yuan, with a total market capitalization of 20.8 billion yuan [7]