Kouzijiao(SH:603589)2024-05-29 11:00Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of RMB 68.38 based on a 20x PE for 2024 [4][13]. Core Insights - The company reported a total revenue of RMB 5.96 billion in 2023, representing a year-on-year increase of 16.1%, and a net profit of RMB 1.72 billion, up 11.0% YoY. In Q4 2023, revenue was RMB 1.52 billion, up 10.4% YoY, with a net profit of RMB 0.37 billion, up 6.9% YoY. The annual cash dividend was RMB 1.5 per share, with a payout ratio of 52% [3][9]. - The company's baijiu business revenue increased by 15.6% to RMB 5.85 billion in 2023, with high-end products growing significantly. In Q1 2024, baijiu revenue rose by 11.3% to RMB 1.74 billion, driven by strong in-province sales [10][12]. - Gross margin improved slightly in 2023, increasing by 1.03 percentage points to 76.5%. In Q1 2024, the gross margin remained stable at 76.5% [11]. Financial Performance Summary - The company’s total revenue for 2023 was RMB 5,962 million, with a net profit of RMB 1,721 million. The projected revenues for 2024, 2025, and 2026 are RMB 6,699 million, RMB 7,403 million, and RMB 8,149 million, respectively, with corresponding net profits of RMB 2,052 million, RMB 2,334 million, and RMB 2,612 million [5][7]. - The earnings per share (EPS) for 2023 was RMB 2.87, with forecasts of RMB 3.42, RMB 3.89, and RMB 4.35 for 2024, 2025, and 2026, respectively [5][7]. - The company’s gross margin is expected to remain stable, with projections of 76.0% in 2024, 76.6% in 2025, and 76.9% in 2026 [7][12].