On October 30, China Securities News (Reporter Zhu Wanping) "Sujiao Second" Jiangsu King's Luck Brewery Joint-Stock (603369.SH) achieved double-digit growth in revenue and net income in the first three quarters of this year, but in the third quarter, the net income only increased by 6.61% year-on-year, falling short of the expectations of most brokerages.

Tonight, Jiangsu King's Luck Brewery Joint-Stock announced that in the first three quarters of this year, the company achieved revenue of 9.941 billion yuan, an 18.86% year-on-year increase; net income attributable to shareholders of the listed company was 3.086 billion yuan, a 17.08% year-on-year increase. Earlier disclosed by Jiangsu King's Luck Brewery Joint-Stock, the '2024 Financial Budget' shows that the company plans to achieve revenue of 12.2 billion yuan and a net income of 3.7 billion yuan this year.

In the third quarter, Jiangsu King's Luck Brewery Joint-Stock achieved revenue of 2.636 billion yuan, a 10.12% year-on-year increase; net income attributable to shareholders was 0.624 billion yuan, a 6.61% year-on-year increase, falling short of the expectations of most brokerages.

According to statistics from China Securities News reporters, currently including Zheshang Securities, Guosen Securities, China Merchants Securities, HTSC, Swhy, and other brokerages, a total of 13 brokerages have made predictions on Jiangsu King's Luck Brewery Joint-Stock's Q3 net income, with most brokerages expecting a year-on-year increase of 10%-17%.

By product category, Jiangsu King's Luck Brewery Joint-Stock's special A+ products with ex-factory price above 300 yuan achieved revenue of 6.468 billion yuan, an 18.86% year-on-year increase, equivalent to the company's overall revenue; special A products with ex-factory price of 100-300 yuan achieved revenue of 2.862 billion yuan, a 21.91% year-on-year increase; A products with ex-factory price of 50-100 yuan achieved revenue of 0.367 billion yuan, a 12.28% year-on-year increase; B products with ex-factory price of 20-50 yuan achieved revenue of 0.123 billion yuan, a 5.72% year-on-year decrease; other baijiu products achieved revenue of 0.064 billion yuan, a 12.25% year-on-year decrease.

In terms of regions, Jiangsu King's Luck Brewery Joint-Stock's growth rate in markets outside the province in the first three quarters of this year was faster than within the province, leading to a slight increase in the proportion of markets outside the province, with year-on-year growth rates of 17.71% and 32.73% respectively. However, the company's revenue generated within Jiangsu province still accounts for the vast majority, approximately 92%, posing a significant challenge for the company's nationwide expansion.

Contract liabilities are an important reference indicator for the performance of baijiu companies, showing the sustained growth potential of a baijiu company. As of the end of September this year, Jiangsu King's Luck Brewery Joint-Stock's contract liabilities were 0.544 billion yuan, a year-on-year decrease of approximately 58.5%. Regarding the significant drop in contract liabilities, Jiangsu King's Luck Brewery Joint-Stock stated in the third-quarter report that it was mainly due to seasonal factors and changes in the company's collection policy.

From 2020 to 2023, Jiangsu King's Luck Brewery Joint-Stock's three-year compound annual growth rate of net income exceeded 26%. After three consecutive years of high growth, amidst the current environment of weak consumer demand, investors have doubts about whether the company can maintain a high growth pace. However, Jiangsu King's Luck Brewery Joint-Stock has repeatedly expressed expectations for high growth externally, announcing this year's revenue target to reach 12.2 billion yuan and also stating that next year's revenue aims to exceed 15 billion yuan. However, according to a reporter from Caijing.com, the company may adjust the target of 15 billion yuan next year based on market conditions.