YLT(SH:600197) Huaxin Securities·2024-04-28 08:00Investment Rating - The report maintains a "Buy" investment rating for the company [6][24]. Core Views - The company is expected to continue its performance recovery, with anticipated benefits from internal reforms and pricing strategies [6][24]. - The new management is expected to implement comprehensive internal reforms, which will enhance the company's operational efficiency and profitability [24]. Summary by Sections Financial Performance - The company's total revenue for 2023 was 22.31 billion, with Q4 and Q1 revenues of 5.88 billion and 8.31 billion respectively, showing year-on-year growth of 37%, 86%, and 12% [6]. - The net profit attributable to shareholders for 2023 was 3.40 billion, with Q4 and Q1 profits of 1.11 billion and 1.59 billion respectively, reflecting year-on-year growth of 106%, 333%, and 7% [6]. - The gross margin for Q1 2024 was 51.89%, an increase of 0.4 percentage points year-on-year [6]. Sales and Market Strategy - The company is expanding its sales team and adjusting its sales structure, with domestic revenue for Q1 2024 reaching 6.71 billion, a 7% increase year-on-year [8]. - The company plans to initiate a recruitment drive for traditional distributors and group buyers in Q3 2024, enhancing its channel layout [8]. Profit Forecast - The forecast for earnings per share (EPS) is 0.96 for 2024, 1.23 for 2025, and 1.49 for 2026, with corresponding price-to-earnings (PE) ratios of 21, 16, and 14 times [24]. - The main revenue growth rates are projected at 27.4% for 2024, 21.9% for 2025, and 17.6% for 2026 [11]. Product Performance - High-end liquor revenue for 2023 was 14.66 billion, with a year-on-year growth of 47%, while Q1 2024 revenue was 5.70 billion, growing 11% year-on-year [6]. - The company is expected to launch new packaging for its high-end products in Q2 2024, which is anticipated to further enhance profitability [8].