WLY(SZ:000858) Southwest Securities·2024-05-06 02:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 83.27 billion yuan in 2023, representing a year-on-year growth of 12.6%, and a net profit attributable to shareholders of 30.21 billion yuan, up 13.2% year-on-year [2] - The company plans to distribute a cash dividend of 46.7 yuan per 10 shares (including tax), with a payout ratio of 60% [2] - The first quarter of 2024 saw revenues of 34.83 billion yuan, a year-on-year increase of 11.9%, and a net profit of 14.05 billion yuan, up 12.0% year-on-year, aligning with market expectations [2] - The company has set a double-digit growth target for 2024, supported by strong performance in the first quarter and growth in specific product lines [2][8] Summary by Sections Financial Performance - In 2023, the company's product revenue reached 62.8 billion yuan, with a year-on-year growth of 13.5%, while sales volume and price per ton changed by +18.0% and -3.8% respectively [2] - The gross profit margin for 2023 increased by 0.4 percentage points to 75.8%, with a net profit margin of 37.9%, remaining stable compared to 2022 [2] - For Q1 2024, the gross profit margin remained stable year-on-year, while the net profit margin was 42.0% [2] Growth Strategy - The company actively optimized its channel structure, with revenue from distribution and direct sales reaching 45.99 billion yuan (+13.6%) and 30.46 billion yuan (+12.5%) respectively in 2023 [2] - The company aims to maintain a clear pricing strategy, reducing traditional distributor volumes by about 20% to support price increases and restore channel confidence [2][8] Earnings Forecast - The expected earnings per share (EPS) for 2024-2026 are projected to be 8.94 yuan, 10.05 yuan, and 11.42 yuan, respectively, with corresponding dynamic price-to-earnings (PE) ratios of 17x, 15x, and 13x [2][3] - The company is positioned as a leader in the high-end price segment, with a strong growth outlook and increased dividend payout enhancing its investment value [2][8]