On March 15, 2024, Wuliangye announced the progress of increasing the Group's stock holdings.

Key points of investment

The group increased its holdings for more than half of the time, and the company's Yuanchun gave positive feedback

The company disclosed the Group's holdings increase plan on December 14, 2023. The Group's holdings will be increased by 400-800 million yuan within 6 months from December 14. As of March 14, 2024, halfway through, the Group had increased its holdings by 1.3046 million shares, accounting for 0.034% of the total share capital, and an increase of 180 million yuan. During the Yuanchun period, the company's national sales of the Eighth Generation Wuliangye maintained steady double-digit year-on-year growth. The sales situation in regions with a good economic base and rapid consumption recovery was relatively good.

Steadily increase the dividend rate and accelerate the return of brand value

In terms of dividends, the company continues to implement the core value concept of “creating good returns for investors”. Over the past three years, cash dividends have exceeded 10 billion yuan per year. In the future, the company will steadily increase its dividend rate and continue to increase investor returns. According to channel data feedback, the wholesale price of Wuliangye has rebounded from before the holiday season. The post-holiday feedback was also positive, and the company's brand value returned at an accelerated pace.

Profit forecasting

We are optimistic about the company's determination to maintain the price system, restore channel confidence, and accelerate the return of the company's brand value. The company's 2023-2025 EPS is expected to be 7.63/8.67/9.73 yuan, respectively, and the current stock price corresponding to PE is 20/18/16 times, respectively, maintaining a “buy” investment rating.

Risk warning

Macroeconomic downside risks, peak season growth falling short of expectations, rising prices falling short of expectations, etc.