WLY(SZ:000858) Wanlian Securities·2024-04-30 13:00Investment Rating - The investment rating for the company is "Buy" [2][7]. Core Insights - The company achieved a revenue growth of 12.58% year-on-year in 2023, with a profit growth of 13.19%, indicating stable performance and solid industry position. In Q1 2024, revenue grew by 11.86% and profit by 11.98%, marking a strong start to the year. The company plans to distribute a cash dividend of 46.70 yuan per 10 shares, with a total cash dividend amounting to 18.127 billion yuan, both figures being record highs since its listing [2][3][5]. Summary by Sections Financial Performance - In 2023, the company reported a total revenue of 832.72 billion yuan and a net profit attributable to shareholders of 302.11 billion yuan. For Q1 2024, revenue was 348.33 billion yuan, with a net profit of 140.45 billion yuan [3][5]. Product and Channel Performance - The company's core product, the eighth generation of Wuliangye, saw a sales increase of 17.98% year-on-year, contributing to a revenue growth of 13.50%. Other liquor products experienced a sales increase of 27.60% and revenue growth of 11.58%. Direct sales and distribution channels both performed well, with direct sales revenue up 12.53% and distribution revenue up 13.56% [2][3]. Profitability and Cost Management - The gross margin for 2023 slightly increased by 0.37% to 75.79%. The net profit margin remained stable at 37.85%. In Q1 2024, the gross margin improved to 78.43%, while the net profit margin slightly decreased to 42.02% [2][3][5]. Forecast and Valuation - The company is expected to achieve net profits of 341.54 billion yuan, 382.68 billion yuan, and 425.68 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 8.80, 9.86, and 10.97 yuan per share. The price-to-earnings ratio is projected to be 17, 15, and 13 for the same years [5][6].