JINHUI(603919) 广发证券·2024-06-07 10:31Investment Rating - The report gives a "Buy" rating for the company with a target price of 21.74 CNY per share based on a 27x PE valuation for 2024 [6][23]. Core Insights - The company is positioned as a leading player in the Northwest liquor market, with strong revenue growth projected at 21.5% for 2024, 17.7% for 2025, and 16.1% for 2026. Net profit is expected to grow by 24.2%, 20.9%, and 19.9% respectively during the same period [6][23]. - The company is focusing on expanding its market presence in Eastern China while maintaining a stronghold in the Northwest region, indicating a strategic shift towards national expansion [6][23]. Summary by Sections Revenue and Profit Forecast - The company’s revenue is projected to reach 30.95 billion CNY in 2024, 36.44 billion CNY in 2025, and 42.29 billion CNY in 2026, with year-on-year growth rates of 21.5%, 17.7%, and 16.1% respectively [6][3]. - The net profit attributable to shareholders is expected to be 4.1 billion CNY in 2024, 4.9 billion CNY in 2025, and 5.9 billion CNY in 2026, with growth rates of 24.2%, 20.9%, and 19.9% [6][3]. Product Segmentation - High-end liquor sales are expected to grow significantly, with revenue growth rates of 31.7%, 25.0%, and 22.5% from 2024 to 2026, driven by increased consumer demand and company promotions [6][17]. - Mid-range liquor is also projected to see robust growth, with revenue growth rates of 23.7%, 19.4%, and 17.3% during the same period [6][18]. - Low-end liquor sales are forecasted to grow at rates of 13.8%, 11.5%, and 10.3% from 2024 to 2026, reflecting a steady demand in this segment [6][2]. Market Position and Strategy - The company holds the largest market share in Gansu province and is recognized as a leading brand in the Northwest liquor market, which enhances its competitive edge [6][23]. - The company is implementing a differentiated marketing strategy across various regions, focusing on local consumer preferences and expanding its distribution channels [6][20]. Online Sales and Digital Marketing - The establishment of an internet sales company in 2022 aims to enhance online marketing efforts, with flagship stores set up on major e-commerce platforms to cater to younger consumers [6][22].