Event: The company released its 2023 annual report and 2024 quarterly report. In 2023, revenue was 10.59 billion yuan, -9.3% year-on-year, net profit attributable to mother - $30 billion, and net profit attributable to shareholders of the parent company after deduction - $570 million.
Among them, revenue for the fourth quarter of 2023 was 1.79 billion yuan, or -30.6% year-on-year, net profit attributable to mother - $0.03 billion, and net profit not later attributable to shareholders of the parent company - $280 million. Revenue for the first quarter of 2024 was 4.06 billion yuan, -0.8% year on year, net profit attributable to mother was 450 million yuan, +37.4% year on year, and net profit attributable to shareholders of the parent company after deduction was 450 million yuan, +37.4% year on year. Net profit for the first quarter of 2024 was the best level in the last ten years.
Prices were raised for Niulanshan Distillery products. From February 1, 2024, prices for the 42°125ml, 42°265ml, 42°500ml, and 52°500ml4 varieties of Niulanshan aged wine will be adjusted, increasing 6 yuan per box. The price increase is expected to raise the gross margin level of the company's liquor business.
Divestiture of the real estate business. All of the shares of Beijing Shunxin Jiayu Real Estate Development Co., Ltd., the original 100% holding subsidiary, have been transferred. The company no longer holds shares in Beijing Shunxin Jiayu Real Estate Development Co., Ltd.
Controlling shareholders use their own funds to increase their stock holdings through centralized bidding. From February 2 to February 5, 2024, the controlling shareholder Shunxin Holdings increased its holdings of the company's shares by 5,683,400 through centralized bidding transactions. Shunxin Holdings plans to increase its holdings by no less than RMB 100 million and no more than RMB 200 million (including the increase in holdings from February 2 to February 5, 2024). The controlling shareholder's holdings will be increased within 6 months from February 2, 2024. The purpose of the controlling shareholders' holdings is to have confidence in the company's continued stable development in the future, recognize the company's value, and enhance investor confidence.
Investment advice: We expect the company to achieve operating income of 103.1/104.9/11.5 billion yuan in 2024-2026, -2.6%/+1.7%/+9.7%; net profit to mother of 5.8/6.2/7.3 billion yuan, +295.4%/+6.8%/+18.6% year-on-year, and ESP of 0.78/0.83/0.99 yuan, respectively. The company is a leading light-bottled wine company and has a “buy” rating.
Risk warning: The growth rate of bottled wine sales has slowed; slaughter and livestock breeding businesses have lost a lot.