LZLJ(000568) 西南证券·2024-11-04 01:00Investment Rating - The report maintains a "Buy" rating for Luzhou Laojiao (000568) [1] Core Views - The company reported a revenue of 24.3 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 10.8%, and a net profit attributable to shareholders of 11.59 billion yuan, up 9.7% year-on-year [1] - In Q3 2024, revenue reached 7.4 billion yuan, a slight increase of 0.7% year-on-year, while net profit was 3.57 billion yuan, up 2.6% year-on-year [1] - The company is proactively managing its growth by adjusting sales targets and controlling cash flow to alleviate pressure on distributors amid a challenging external consumption environment [1] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 243.0 billion yuan, with a net profit of 115.9 billion yuan [1] - Q3 2024 saw a revenue of 74.0 billion yuan and a net profit of 35.7 billion yuan [1] - The gross margin in Q3 2024 was 88.1%, down 0.5 percentage points year-on-year, attributed to an increase in the sales proportion of lower-tier products [1] Marketing and Strategy - The company is focusing on deepening its market presence in traditional strongholds like Southwest and North China while implementing strategic initiatives in East China [1] - The management has introduced a "five-step system" to enhance consumer interaction and optimize channel profit distribution [1] Future Outlook - The company is expected to maintain steady growth, with projected EPS for 2024, 2025, and 2026 at 9.82 yuan, 10.80 yuan, and 11.73 yuan respectively, corresponding to PE ratios of 14x, 13x, and 12x [2] - The brand's strength is anticipated to continue, with a long-term positive trend expected as the macroeconomic environment improves [1][2]