WLY(SZ:000858) CSC SECURITIES (HK) LTD·2024-04-29 04:00Investment Rating - The investment rating for the company is "BUY" [1][4]. Core Views - The company has demonstrated steady revenue growth, achieving a revenue of RMB 83.27 billion in 2023, a year-on-year increase of 12.6%, and a net profit of RMB 30.21 billion, up 13.2% year-on-year [2][3]. - The company aims to maintain a stable pricing strategy while enhancing brand value, with a target price set at RMB 178 [2]. - The company plans to distribute a cash dividend of RMB 46.7 per 10 shares [2]. Summary by Sections Company Overview - The company operates in the food and beverage industry, with a current A-share price of RMB 152.25 as of April 28, 2024, and a market capitalization of RMB 590.96 billion [1]. - Major shareholders include Yibin Development Holdings, holding 34.43% of shares [1]. Financial Performance - In Q4 2023, the company reported revenue of RMB 20.74 billion, a 14% increase year-on-year, and a net profit of RMB 7.38 billion, up 10% year-on-year [2]. - For Q1 2024, the company achieved revenue of RMB 34.83 billion, a year-on-year increase of 11.9%, with a net profit of RMB 14.05 billion, up 12% year-on-year [3]. - The gross profit margin for 2023 was 75.8%, a slight increase of 0.4 percentage points year-on-year [2]. Future Projections - The company is projected to achieve net profits of RMB 34.93 billion, RMB 39.06 billion, and RMB 43.36 billion for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 15.6%, 11.8%, and 11% [3][7]. - The earnings per share (EPS) are expected to be RMB 9.00, RMB 10.06, and RMB 11.17 for the same years, with corresponding price-to-earnings (P/E) ratios of 17, 15, and 14 [3][7]. Dividend Policy - The company plans to increase its dividend payout ratio to 60%, resulting in a dividend yield of 3% [3].