KWEICHOW MOUTAI(SH:600519)2024-04-06 16:00Investment Rating - The report maintains a "Buy" rating for Guizhou Moutai, with a market price of RMB 1,715.11 and a sector rating of "Outperform" [4]. Core Views - Guizhou Moutai's 2023 annual report shows strong revenue growth, achieving RMB 147.694 billion, a year-on-year increase of 19.0%, and a net profit of RMB 74.734 billion, also up 19.2% [7]. - The company's performance exceeded previous forecasts and targets, supporting the "Buy" rating [7]. - The growth is driven by both volume and price increases, with Moutai liquor sales growing by 11.1% and revenue from Moutai 1935 increasing by 29.4% [7]. Summary by Sections Financial Performance - In Q4 2023, revenue reached RMB 44.425 billion, a 20.3% year-on-year increase, while net profit was RMB 21.858 billion, up 19.3% [5]. - The gross profit margin improved slightly to 92.0% for FY2023, with total revenue and net profit growth rates of 19.0% and 19.2%, respectively [5][20]. - Earnings per share (EPS) for 2023 was RMB 59.49, reflecting a 19.2% increase from the previous year [5][20]. Revenue Breakdown - Moutai liquor revenue was RMB 126.59 billion, a 17.4% increase, with sales volume reaching 42,000 tons [7]. - The average price for Moutai liquor remained stable at RMB 2,740 per ton, with a slight increase in ton price to RMB 3.006 million per ton [7]. - Series liquor revenue grew significantly, contributing RMB 20.63 billion, a 29.4% increase, with a ton price increase of 25.7% [7]. Channel and Market Strategy - Direct sales channel revenue increased by 36.2% to RMB 67.23 billion, accounting for 45.7% of total revenue [7]. - The i Moutai digital marketing platform contributed significantly to direct sales, with revenue of RMB 22.37 billion, an 88.3% increase [7]. - Traditional channel revenue grew by 7.5%, indicating a shift in sales strategy towards direct and digital channels [7]. Future Outlook - The company aims for a revenue growth of approximately 15% in 2024, with EPS projected to be RMB 69.37, reflecting a 16.6% increase [7][20]. - The management team is focused on product innovation and market expansion, ensuring a strong growth trajectory for the next two years [7].