YINGJIA DISTILLERY(SH:603198) Changjiang Securities·2024-05-20 08:32Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a total revenue of 6.72 billion yuan in 2023, representing a year-on-year increase of 22.07%. The net profit attributable to shareholders was 2.288 billion yuan, up 34.17%. For Q1 2024, total revenue reached 2.325 billion yuan, an increase of 21.33%, with a net profit of 913 million yuan, up 30.43% [6][7]. - The revenue growth is driven by the strong performance of mid-to-high-end liquor products, which accounted for 5.022 billion yuan in 2023, growing by 27.84%. The domestic market continues to show robust demand, with revenue from the domestic market reaching 4.517 billion yuan, up 31.51% in 2023 [7]. - Profitability improved due to an increase in gross margin and stable expense ratios, with the net profit margin rising to 34.04% in 2023, up 3.07 percentage points [7]. Summary by Sections Financial Performance - In 2023, the company achieved total revenue of 6.72 billion yuan and a net profit of 2.288 billion yuan. For Q1 2024, the revenue was 2.325 billion yuan, and the net profit was 913 million yuan [6][7]. - The gross margin for 2023 was 71.37%, an increase of 3.35 percentage points, while the net profit margin improved to 39.27% in Q1 2024 [7]. Product and Market Analysis - Mid-to-high-end liquor products continue to lead revenue growth, with a significant increase in both domestic and provincial sales. The domestic market's revenue in 2023 was 4.517 billion yuan, reflecting a growth of 31.51% [7]. - The company is expected to achieve double-digit growth in performance through brand enhancement and operational efficiency improvements [7]. Future Outlook - The company aims to continue its focus on brand enhancement, management efficiency, and talent optimization, with expectations for EPS of 3.63 yuan in 2024 and 4.39 yuan in 2025, corresponding to PE ratios of 19 and 16 times, respectively [7].