SCSF(SH:600779) Nan Fang Du Shi Bao·2025-06-19 00:39Core Viewpoint - Water Jiufang's management emphasizes the importance of internal improvement to navigate through the current liquor cycle, focusing on brand, channel, product, and cultural development to seize growth opportunities in 2025 [3][4]. Inventory Management - The company asserts that its inventory levels are reasonable, with a strong focus on sustainable business practices and strict inventory management [6]. - In Q1, consumer bottle-opening actions increased by 45.1%, indicating a positive trend in sales activity [6]. Sales Strategy - Water Jiufang's revenue growth is primarily driven by increased sales volume, with a notable rise in new retail channels, which saw a 184% year-on-year increase in Q1 [5][8]. - The company is targeting younger consumers, particularly those aged 25-30, and plans to innovate products, including launching more offerings below 38 degrees in specific regions [5]. Financial Performance - For 2024, Water Jiufang reported a revenue of 5.217 billion yuan, a year-on-year increase of 5.32%, and a net profit of 1.341 billion yuan, up 5.69% [4]. - In Q1 2025, the company achieved a revenue of 959 million yuan, a 2.74% increase, and a net profit of 190 million yuan, up 2.15% [4]. Channel Expansion - The company has expanded its retail channels significantly, with over 24,000 new stores opened by Q1, and aims for double-digit growth in store productivity and coverage in key cities by 2025 [8]. - Water Jiufang is also focusing on enhancing its e-commerce capabilities to drive growth in new retail channels [8].