YINGJIA DISTILLERY(SH:603198) Soochow Securities·2024-04-26 05:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 6.72 billion yuan in 2023, a year-on-year increase of 22%, and a net profit attributable to shareholders of 2.29 billion yuan, up 34% year-on-year. In Q1 2024, revenue reached 2.32 billion yuan, a 21% increase year-on-year, with net profit of 910 million yuan, up 30% year-on-year [3][4] - The company continues to see growth in its premium product lines, with the "Cave Cellar" series accounting for approximately 50% of total sales, reflecting a growth rate of about 35% year-on-year. The company is focusing on expanding its market presence in both domestic and regional markets [3][4] - The gross profit margin for 2023 was 71.4%, an increase of 3.4 percentage points year-on-year, driven by an improved product mix. The net profit margin also improved to 34%, up 3 percentage points year-on-year [3][4] Financial Performance Summary - Total revenue projections for the company are as follows: 8.203 billion yuan in 2024, 10.008 billion yuan in 2025, and 11.808 billion yuan in 2026, with a consistent growth rate of around 22% [2][3] - The net profit attributable to shareholders is forecasted to reach 2.878 billion yuan in 2024, 3.573 billion yuan in 2025, and 4.263 billion yuan in 2026, with growth rates of 25.78%, 24.16%, and 19.31% respectively [2][3] - The earnings per share (EPS) are projected to be 3.60 yuan in 2024, 4.47 yuan in 2025, and 5.33 yuan in 2026, indicating a positive trend in profitability [2][3] Market Outlook - The company is expected to maintain a strong market position in its home province, with a focus on enhancing the quality and quantity of its distribution network. The management emphasizes a digital transformation strategy to improve operational efficiency [4] - The company has adjusted its profit forecasts for 2024 and 2025, now expecting net profits of 2.88 billion yuan and 3.57 billion yuan respectively, reflecting confidence in sustained growth driven by consumer demand and product upgrades [4]