Yanghe(SZ:002304) Guolian Securities·2024-05-07 07:32Investment Rating - The report maintains a "Buy" rating for the company with a target price of 112.48 CNY, based on a current price of 98.44 CNY [8]. Core Insights - The company's revenue and profit figures for 2023 and Q1 2024 are in line with expectations, with revenues of 331.26 billion CNY and 162.55 billion CNY, representing year-on-year growth of 10.04% and 8.03% respectively. The net profit attributable to shareholders was 100.16 billion CNY and 60.55 billion CNY, with year-on-year growth of 6.80% and 5.02% respectively [2][3]. - The growth rate of mid-to-high-end liquor has slowed in the short term, with revenue from mid-to-high-end liquor and ordinary liquor reaching 285.39 billion CNY and 39.50 billion CNY, reflecting year-on-year growth of 8.82% and 20.70% respectively. Revenue growth in provinces outside the home province outpaced that within the home province [4]. - Increased sales expenses have put short-term pressure on profitability, with a gross margin of 75.25% in 2023, up 0.65 percentage points year-on-year, while the net profit margin decreased by 0.91 percentage points to 30.24% [5]. - The company is projected to achieve revenues of 360.76 billion CNY, 387.61 billion CNY, and 412.66 billion CNY from 2024 to 2026, with corresponding growth rates of 8.91%, 7.44%, and 6.46%. Net profits are expected to be 105.88 billion CNY, 116.08 billion CNY, and 126.29 billion CNY, with growth rates of 5.71%, 9.63%, and 8.80% respectively [6][7]. Financial Summary - In 2023, the company reported total revenue of 331.26 billion CNY, with a growth rate of 10.04%. The net profit attributable to shareholders was 100.16 billion CNY, with a growth rate of 6.80% [3][7]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 7.03 CNY, 7.71 CNY, and 8.38 CNY respectively, with a three-year compound annual growth rate (CAGR) of 8.03% [6][7]. - The company's financial metrics indicate a price-to-earnings (P/E) ratio of 16.1 in 2023, expected to decrease to 14.2 by 2024, and a price-to-book (P/B) ratio of 3.2 in 2023, projected to decline to 2.6 by 2024 [7].