Description of the event

The company's total revenue in 2023 was 2,830 million yuan (-30.14% YoY); net profit attributable to mother was 548 million yuan (-47.77% YoY), after deducting non-net profit of 538 million yuan (-48.85% YoY). The company's total revenue for 2024Q1 was 494 million yuan (-48.8% YoY); net profit attributable to mother was 73.3803 million yuan (-75.56% YoY), after deducting non-net profit of 69.5072 million yuan (-76.75% YoY).

Incident comments

The company's total revenue +△ contract liabilities in 2023 was 2,681 billion yuan (-13.58% year over year), of which total revenue for 2023Q4 +△ contract liabilities was 721 million yuan (+10.37% year over year). The company's total revenue for 2024Q1 +△ contract liabilities was 444 million yuan (-50.57% YoY).

The company's net profit margin in 2023 fell 6.53 pct year on year to 19.36%, with gross margin -1.29 pct to 78.35% year on year, and the period expense ratio was +6.36 pct year on year to 35.03% year on year. Detailed changes: sales expenses ratio +6.94 pct year over year, management expense ratio +1.53 pct year over year, R&D expenses rate +0.17 pct year on year, financial expenses ratio -2.28 pct year on year, operating tax and surcharges +1.78 pct year on year. The company's 2024Q1 net interest rate fell 16.26 pct to 14.86% year on year, with gross margin -10.46 pct to 71.08% year on year, and the period expense ratio +7.93 pct year on year to 32.6% year on year. Among them, detailed changes: sales expense ratio +7.9 pct year over year, management expense ratio +4.34 pct year over year, R&D expense ratio +0.3 pct year on year, financial expense ratio -4.61 pct year on year, sales tax and surcharges +3.47 pct year on year.

The company received cash flow of 2,513 billion yuan from sales of goods and provision of services in 2023 (-26.07% YoY), of which the cash flow received from sales of goods and provision of services in 2023Q4 was 577 million yuan (-2.14% YoY). The company received 318 million yuan in cash flow from sales of goods and provision of services in 2024Q1 (-58.14% year-on-year).

The 2023 Inner Reference Series was 715 million yuan (-8.21% YoY), of which 2023H2 was 273 million yuan (YoY -46.47%); the 2023 Alcoholics Series was 1,647 million yuan (YoY -27.45%), of which 2023H2 Alcoholics Series was 801 million yuan (YoY +0.16%); the 2023 Xiangquan Series was 171 million yuan (-68.03% YoY), of which 2023H2 Xiangquan Series was 35 million yuan (YoY -47.76%); 2023 Other series reached 388 million yuan (-0.15% YoY), of which 2023H2 other series was 174 million yuan (+33.61% YoY).

The company's 2024-2025 EPS is expected to be 1.64 and 1.92 yuan, and the corresponding PE is 31/27 times, maintaining a “buy” rating.

Risk warning

1. Industry demand falls short of expectations;

2. Increased market price fluctuations, etc.