WLY(SZ:000858) Guolian Securities·2024-05-10 08:00Investment Rating - The investment rating for the company is "Buy" with a target price of 173.40 CNY [4]. Core Views - The company's revenue and profit for 2023 and Q1 2024 met expectations, with a revenue of 83.272 billion CNY in 2023, a year-on-year increase of 12.58%, and a net profit of 30.211 billion CNY, up 13.19% [1][2]. - The company demonstrated strong growth in its liquor products, achieving a revenue of 76.447 billion CNY in 2023, a 13.15% increase year-on-year, with the flagship product, Wuliangye, growing by 13.50% [1][2]. - The company's gross margin improved to 75.79% in 2023, with a net profit margin of 36.28%, indicating a steady enhancement in profitability [1][2]. Financial Performance Summary - In 2023, the company achieved a revenue of 83.272 billion CNY, with a growth rate of 12.58% [3]. - The projected revenues for 2024-2026 are 92.705 billion CNY, 102.631 billion CNY, and 112.929 billion CNY, with respective growth rates of 11.33%, 10.71%, and 10.03% [2][3]. - The net profit for 2024-2026 is expected to be 33.663 billion CNY, 37.305 billion CNY, and 41.167 billion CNY, with growth rates of 11.43%, 10.82%, and 10.35% [2][3]. Regional Performance - The company showed strong performance across various regions, with the Eastern region achieving a revenue of 22.389 billion CNY, a year-on-year increase of 17.92% [1]. - The total number of distributors increased to 3,384, with Wuliangye distributors reaching 2,570, reflecting a robust distribution network [1]. Profitability Metrics - The gross margin for Q1 2024 was reported at 78.43%, with a net profit margin of 40.32%, indicating strong profitability [1][2]. - The company's earnings per share (EPS) for 2024 is projected to be 8.67 CNY, with a three-year compound annual growth rate (CAGR) of 10.87% [2][3].