SCSF(SH:600779) Zheng Quan Ri Bao·2025-05-23 09:12Core Viewpoint - In the context of increasing volatility in global financial markets and ongoing pressure on A-share valuations, high-quality assets with stable growth and resilience are becoming increasingly scarce. Investors are shifting their focus from short-term high returns to long-term value based on fundamentals, particularly in the Chinese capital market where core consumer assets with brand strength and sustainable cash flow are gaining attention [2][3]. Industry Overview - China's economy is transitioning from high-speed growth to high-quality development, with consumption playing a crucial role in driving domestic demand and stabilizing growth. The retail sales of consumer goods increased by 4.9% year-on-year in Q1 2025, with a notable recovery in quality consumption represented by high-end liquor, smart home appliances, and beauty care products. This trend has led to an increase in overseas capital flowing back into A-shares, particularly in the food and beverage sector, indicating long-term optimism about China's high-end consumption potential [3]. Company Performance - Water Margin (水井坊) has demonstrated steady performance over the past year, continuing its trend of high-quality growth. In 2024, the company achieved revenue of 5.217 billion yuan, a year-on-year increase of 5.32%, and a net profit attributable to shareholders of 1.341 billion yuan, up 5.69%. In Q1 2025, the company reported revenue of 959 million yuan, a 2.74% increase, and a net profit of 190 million yuan, up 2.15%, showcasing its resilience and adaptability in a rational growth cycle for the liquor industry [4]. Strategic Initiatives - Water Margin's sustained growth is attributed to its commitment to long-termism and the synergistic advancement of its channels, products, and brand. The company is deepening its core high-end product line while optimizing price coverage and matching high-value consumption scenarios. In 2024, it added over 15,000 offline retail outlets, enhancing its national layout and sales efficiency through digital operations and e-commerce [4]. Brand Development - The company is increasingly focused on refined brand building, emphasizing emotional and aesthetic aspects of consumption. Initiatives like the "Fortune Ceremony" in collaboration with the Temple of Heaven aim to enhance brand experience and emotional value. This cultural approach not only strengthens user loyalty but also enhances Water Margin's influence among high-end consumers [5]. Sustainability Efforts - Water Margin has committed to sustainable development, releasing its ESG report for the fourth consecutive year. The company aims to reduce greenhouse gas emissions by at least 60,000 tons through production technology upgrades and energy management from 2024 to 2030. These efforts not only reflect social responsibility but also symbolize the company's future competitiveness, providing investors with confidence in its sustainable value [6]. Long-term Investment Perspective - From a long-term investment perspective, Water Margin is building its ability to navigate economic cycles through solid fundamentals, clear brand strategy, and robust market execution. The company is recognized as a core asset in the high-end liquor segment, offering potential for stable returns for investors focused on value and long-term gains [6].