Event: the company releases quarterly report 2024Fishinggiftsformen24Q1 realized revenue 101,Fishinggiftsformen.50 million yuan, compared with the same period last year.Fishinggiftsformen0.2%, realizing the net profit of 1.597 billion yuan, + 10.1% compared with the same period last year, and deducting the non-return net profit of 1.513 billion yuan, + 12.1% of the same period last year.FishinggiftsformenThe company's performance slightly exceeded market expectations. The impact of the high base is obvious, and Q1 sales are under pressure. In terms of volume, the company's 24Q1 achieved beer sales of 2.184 million tons, down 7.6% from the same period last year. The pressure on sales was mainly due to the high willingness to take goods through the channels in the same period last year, and the slow recovery of food and beverage consumption since the beginning of 24 years. In terms of grades, the main 24Q1 brand achieved sales of 1.322 million tons,-5.6% compared with the same period last year, including 960000 tons of mid-and high-end beer,-2.4% year-on-year, and 860000 tons of other brands,-10.4% of the same period last year. In terms of price, thanks to the increase in the proportion of mid-and high-end beer to 44% year-on-year, the company's overall tonnage price rose 2.6% year-on-year to 4647 yuan / ton, and the high-end upgrading process continued. The structure upgrade + the cost drops, the profitability increases obviously. 24Q1's gross profit margin was 40.4%, up 2.1 ppm from the same period last year; the increase in gross profit margin was mainly due to the improvement of product structure and the continued decline in the cost of major raw materials, with the cost of 24Q1 tons compared with the same period last year-1pp to 2768 yuan / ton. In terms of expense rate, the 24Q1 sales expense rate decreased by 1pp to 12.8% compared with the same period last year, mainly due to the company's efforts to control expenses; the management expense rate was + 0.4pp to 3.4% compared with the same period last year. The cost dividend cashed in the upgrading of the superimposed product structure, driving the company's overall 24Q1 net interest rate to increase 2.2pp to 16% year-on-year. Product strategy continues to upgrade, the peak season low base is worth looking forward to. 1) on the product side, the company's product strategy has once again ushered in an upgrade. On the basis of the original three items, the new "1-1-1-2-N" strategy will further enhance the strategic status of white beer and fresh beer. The overall structural upgrading trend of the company continues to improve; in addition, the upgrading path from low-end Laoshan to mid-high-end classic structure will still be an important engine for the overall tonnage increase. 2) on the channel side, the company will accelerate the market construction and layout of the "one vertical and two horizontal" strategy, continuously strengthen market promotion and deepen the construction of the market sales network, and consolidate and improve its dominant position in the base market and its share of emerging markets. 3) looking to the future, the low base effect is expected to appear since May, and this year's peak season is stimulated by the double benefits of the Olympic Games and the European Cup; in addition, under the current downward trend of barley and packaging prices, profit elasticity is expected to continue to release. Profit forecast and investment advice. It is estimated that the EPS from 2024 to 2026 is 3.60,4.16,4.79 yuan respectively, and the corresponding dynamic PE is 22 times, 19 times and 17 times respectively, maintaining the "buy" rating. Risk hint: the recovery of the current drinking scene is not as good as the expected risk, and high-end competition aggravates the risk. [disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.

[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.