Yanjing Brewery(SZ:000729) EBSCN·2024-04-25 06:02Investment Rating - The report maintains a "Buy" rating for Yanjing Beer (000729.SZ) [6] Core Views - The company reported a significant improvement in profits for Q1 2024, achieving a net profit of 1 billion yuan, a year-on-year increase of 58.9% [2][3] - The gross margin for Q1 2024 was 37.18%, up 0.4 percentage points year-on-year, attributed to lower raw material costs and improved product mix [3] - The company aims to continue its high-quality development in line with the "14th Five-Year Plan," focusing on efficiency and profit margin optimization [4] Summary by Sections Financial Performance - In Q1 2024, Yanjing Beer achieved operating revenue of 3.59 billion yuan, a year-on-year increase of 1.7% [2] - The net profit attributable to shareholders was 1 billion yuan, marking the highest value for the same period since 2005 [3] - The sales expense ratio decreased to 11.93%, down 0.57 percentage points year-on-year, indicating improved efficiency in expense allocation [3] Sales and Product Strategy - The U8 product line sold 530,000 kiloliters in 2023, representing a year-on-year growth of 37%, with expectations for continued rapid growth [4] - The company is focused on enhancing its product mix and expanding its offerings centered around the U8 brand to drive revenue growth [4] Profitability Forecast - The report forecasts net profits for 2024, 2025, and 2026 to be 919 million, 1.183 billion, and 1.422 billion yuan respectively, with corresponding EPS of 0.33, 0.42, and 0.50 yuan [4][5] - The projected P/E ratios for the same years are 30x, 23x, and 19x, indicating potential for sustained growth driven by the U8 brand and cost efficiency improvements [4]