Yanjing Brewery(000729) 华创证券·2025-04-22 02:01Investment Rating - The report maintains a "Strong Buy" rating for Yanjing Beer (000729) with a target price of 15.5 CNY, indicating an expected performance exceeding the benchmark index by over 20% in the next six months [1][7][27]. Core Insights - Yanjing Beer reported a revenue of 14.667 billion CNY for 2024, a year-on-year increase of 3.2%, and a net profit attributable to shareholders of 1.056 billion CNY, reflecting a significant year-on-year growth of 63.74% [1][3]. - The company plans to distribute a cash dividend of 1.9 CNY per 10 shares, totaling approximately 536 million CNY, which represents a 90% increase in dividends [1]. - The company’s U8 product line saw a remarkable sales increase of 31.4% in 2024, contributing to a structural upgrade with mid-to-high-end products accounting for 67.01% of revenue [7]. Financial Performance Summary - 2024 Financials: - Total revenue: 14.667 billion CNY - Net profit: 1.056 billion CNY - Earnings per share (EPS): 0.37 CNY - Price-to-earnings (P/E) ratio: 34 [3][4]. - Future Projections: - Expected revenue growth for 2025 is projected at 5.3%, with net profit anticipated to reach 1.451 billion CNY, a growth of 37.4% [3][4]. - The company aims for a revenue target of 9% growth for 2025, reflecting confidence in operational improvements and market expansion [7]. Market Dynamics - The report highlights that Yanjing Beer has successfully navigated a challenging market environment, with a 1.6% increase in overall sales volume to 4.004 million kiloliters in 2024, despite a slight decline in average price per ton [7]. - The company’s gross margin improved to 42.6%, up by 3.7 percentage points, driven by cost reductions and operational efficiencies [7]. Strategic Outlook - Yanjing Beer is entering a positive operational cycle, with ongoing reforms expected to enhance efficiency in procurement, production, and management, thereby accelerating performance [7]. - The report emphasizes the potential for further profit margin improvements, given the current net profit margin of 9% and the anticipated continuation of cost benefits [7].