Shede Spirits (SH:600702) 光大证券研究·2025-03-31 08:36Core Viewpoint - The company reported a significant decline in revenue and net profit for the year 2024, indicating challenges in maintaining sales and profitability in a competitive market [2][3][4]. Revenue Performance - In 2024, the company achieved total revenue of 5.357 billion yuan, a year-on-year decrease of 24.4%, with a net profit attributable to shareholders of 346 million yuan, down 80.5% [2]. - The fourth quarter alone saw total revenue of 897 million yuan, a decline of 51.2%, and a net profit loss of 323 million yuan, a decrease of 168.1% [2]. - The company implemented a strategy to control volume and maintain prices, leading to a decline in revenue across different product categories, with mid-to-high-end liquor and ordinary liquor revenues at 4.096 billion yuan and 693 million yuan, respectively, down 27.7% and 23.4% year-on-year [3]. Regional Performance - Revenue from provincial and non-provincial markets in 2024 was 1.511 billion yuan and 3.277 billion yuan, reflecting declines of 19.7% and 30.0% respectively [3]. - The fourth quarter saw a more pronounced decline in non-provincial revenue, down 58.8%, compared to a 49.8% decline in provincial revenue [3]. Profitability and Cost Structure - The overall gross margin for 2024 was 65.5%, a decrease of 9.0 percentage points, primarily due to a significant drop in mid-to-high-end liquor sales [4]. - The tax and additional charges accounted for 19.5% of revenue, an increase of 5.1 percentage points, while selling expenses rose to 23.8%, up 5.6 percentage points [4]. - The net profit margin for 2024 was 6.5%, down 18.6 percentage points from the previous year [4]. Incentive Plans - The company announced a stock incentive plan for 2025, proposing to grant up to 2.0366 million restricted shares to 168 recipients, representing 0.61% of the total share capital [5]. - The incentive plan sets ambitious growth targets for revenue and net profit from 2024 as a base, aiming for a revenue increase of no less than 20% and a net profit increase of no less than 164% in 2025 [5].