CBC(SH:600132) Changjiang Securities·2024-05-20 08:32Investment Rating - The investment rating for Chongqing Beer is "Buy" and is maintained [7][13]. Core Views - The report highlights a steady growth in sales and significant improvement in costs for Chongqing Beer in Q1 2024, with total revenue reaching 4.293 billion yuan, an increase of 7.16%, and net profit attributable to shareholders at 0.452 billion yuan, up 16.78% [2][6]. Summary by Relevant Sections Financial Performance - In Q1 2024, Chongqing Beer reported total revenue of 4.293 billion yuan, reflecting a year-on-year growth of 7.16%. The net profit attributable to shareholders was 0.452 billion yuan, marking a 16.78% increase, while the net profit excluding non-recurring items was 0.446 billion yuan, up 16.91% [2][6]. Sales and Pricing - The sales volume for Q1 2024 was 866,800 tons, representing a year-on-year increase of 5.25%. The average price per ton increased by 1.3%, with revenue growth in high-end, mainstream, and economy segments at 8.3%, 3.6%, and 12.4% respectively. The growth in the economy segment was primarily driven by internal structural upgrades and price increases [6]. Cost Structure - The report indicates a significant improvement in cost structure, with the cost per ton decreasing by approximately 3.27% year-on-year in Q1 2024. This improvement is attributed to lower procurement prices for raw materials such as barley and packaging, alongside increased production capacity utilization due to sales growth [6]. Profitability - The gross margin for Q1 2024 improved by 2.74 percentage points to 47.9%. The net profit margin also increased by 0.87 percentage points to 10.53%, indicating enhanced profitability [6]. Strategic Adjustments - Chongqing Beer is actively adjusting its sales expense strategy to align with market trends, particularly focusing on the growth of mid-range alcoholic beverages. The company aims to deepen its market presence in major cities and expects continued profit growth alongside a high dividend policy [6]. Earnings Forecast - The report projects earnings per share (EPS) for Chongqing Beer at 3.01, 3.29, and 3.53 yuan for the years 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (PE) ratios of 25X, 22X, and 21X [6].