megawaysfreeslots| Wuliangye (000858): Steady growth in performance, control volume, stabilize prices, accelerate the return of brand value

Conclusions and recommendations: performance summary: the company realized revenue of 832 in 2023Megawaysfreeslots.7 billion, an increase of 12% over the same period last yearMegawaysfreeslots.6%, a net profit of 30.21 billion, a year-on-year increase of 13.2%, a revenue of 20.74 billion, a year-on-year increase of 14%, a net profit of 7.38 billion, a year-on-year increase of 10%. The performance is in line with expectations. 24Q1 achieved revenue of 34.83 billion, an increase of 11.9% over the same period last year, and a net profit of 14.05 billion, an increase of 12% over the same period last year, achieving steady growth. Dividend plan: cash dividend of 46.7 yuan per 10 shares comments: the company achieved steady growth in 2023, with revenue of 76.45 billion in the alcohol business, an increase of 13% over the same period last year, of which the volume increased by 25% and the price decreased by 9.6%, affected by the strengthening of mobile sales. For the whole year, Wuliangye products achieved two-wheel drive of eight generations of Wuliangye and classic Wuliangye, with an income of 62.8 billion, an increase of 13.5% over the same period last year. The dynamic sales of a series of wine products increased by more than 70%, and revenue reached 13.64 billion, an increase of 11.6%. On the channel, further efforts were made to expand the channel during the year, adding 26000 core terminals, and starting the construction of "three stores and one", with the number of specialty stores exceeding 1600. The change in costs and expenses for the whole year was stable, with the gross profit margin rising slightly to 75.8 per cent year-on-year, while the expense rate fell 0.21pcts to 10.77 per cent year-on-year. According to 23Q4, the gross profit margin increased by 1.9pcts to 75.6% year-on-year; due to the increase in promotions, image promotion and other expenses, the sales expense rate increased by 2.27pcts to 7.57% year-on-year (during the period, the expense rate increased by 1.96pcts), and the business tax and additional ratio increased by 0.9pcts23Q4 year-on-year profit growth was slower than income. 24Q1 achieved steady growth in revenue of 34.83 billion, an increase of 11.9% over the same period last year, and a net profit of 14.05 billion, an increase of 12% over the same period last year. The change in costs and expenses remained stable, with a gross profit margin of 78.4%, unchanged from the same period last year, and the expense rate rose year-on-year (0.18pcts) (improved management efficiency offset the increase in sales expenses). The net cash inflow from 24Q1's operating activities was 520 million (compared with 9.54 billion in the same period last year), mainly due to the fact that the company took various measures to support the development of dealers according to market changes.MegawaysfreeslotsThe bank accepts more bills of exchange, in addition, the amount of cash due to the bank acceptance is lower, which is in line with the company's "win-win situation".MegawaysfreeslotsThe business philosophy of. In the short term, the balance of 24Q1 contract liabilities decreased by 5.05 billion and 8.8% compared with the same period last year, which is affected by the price stability of goods in the off-season. Looking forward to the whole year, maintaining the price system is the company's key goal this year, driven by steady volume and rising prices, it will maintain a steady growth trend for the whole year. In addition, the previous dealer conference, proposed to make every effort to promote channel profits this year, in addition to the regular assessment incentives, the new marketing process incentives, will boost channel confidence and consolidate the foundation for development. It is expected that net profits will be 34.93 billion, 39.06 billion and 43.36 billion respectively from 2024 to 2026, with year-on-year increases of 15.6%, 11.8% and 11%, respectively, to 9 yuan, 10.06 yuan and 11.17 yuan respectively. The current share price corresponds to 17 times, 15 times and 14 times of PE, respectively. The valuation is reasonable, and the dividend yield is increased to 60% (yoy+5pcts), and the dividend yield is 3%. Maintain "buy". Risk hint: terminal mobile sales are not as expected and channel construction is not as expected [disclaimer] this article only represents the views of third parties and does not represent the position of Hexun. Investors operate accordingly, at their own risk.

[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.