Shede Spirits (SH:600702) Minsheng Securities·2024-04-28 02:30Investment Rating - The report maintains a "Recommended" rating for the company [2] Core Views - The company reported a total revenue of 2.105 billion yuan in Q1 2024, a year-on-year increase of 4.13%, while the net profit attributable to shareholders was 550 million yuan, a decrease of 3.35% year-on-year [1] - The company aims for long-term high-quality development, focusing on brand strategies and expanding its market presence [1] - The company expects revenue growth rates of 10.7%, 12.3%, and 11.9% for 2024, 2025, and 2026 respectively, with net profit growth rates of 10.8%, 13.0%, and 12.7% for the same years [1][2] Financial Performance Summary - In Q1 2024, the company's gross profit margin was 74.16%, down 4.24 percentage points year-on-year, primarily due to a shift in product structure [1] - The company had 2,795 distributors by the end of Q1 2024, with a net increase of 140 distributors [1] - The company's sales cash collection decreased by 14.45% year-on-year, and contract liabilities were 235 million yuan, down 42 million yuan from the previous quarter [1] Revenue and Profit Forecast - The projected revenues for 2024, 2025, and 2026 are 7.84 billion yuan, 8.80 billion yuan, and 9.846 billion yuan respectively, with corresponding net profits of 1.963 billion yuan, 2.218 billion yuan, and 2.498 billion yuan [2][6] - The earnings per share are expected to be 5.89 yuan, 6.66 yuan, and 7.50 yuan for 2024, 2025, and 2026 respectively [2][6] Strategic Outlook - The company plans to continue its dual-brand strategy with "Shede" and "Tuopai," focusing on expanding the "Shede" core product and enhancing the "Tuopai T68" brand [1] - The company is committed to a nationwide expansion strategy while deepening regional market penetration [1] - The organization aims to enhance channel management and increase the sales team size, alongside implementing an employee stock ownership plan to boost internal motivation [1]