Shede Spirits (SH:600702) Ge Long Hui A P P·2025-08-25 08:19Core Viewpoint - The report from Xinda Securities indicates that Shede Liquor's net profit attributable to shareholders for the first half of 2025 is 443 million yuan, a year-on-year decrease of 24.98% [1]. Financial Performance - In Q2, the net profit attributable to shareholders reached 97 million yuan, showing a significant year-on-year increase of 139.48% [1]. - The revenue has shown a notable improvement after a continuous decline of over 20% in the previous four quarters [1]. Product Performance - The revenue from ordinary liquor in Q2 increased by 62.26% year-on-year, primarily driven by substantial sales growth of the T68 product [1]. - The company’s product matrix advantages are highlighted as lower-priced products (Shezhidao, T68) help to offset performance gaps amid intensified competition in the premium segment [1]. Strategic Focus - During the industry adjustment period, the company is focusing on core markets and deepening its layout, stabilizing the pricing of key products, and improving channel inventory issues [1]. - The company is actively exploring new growth points, demonstrating resilience in its operational development [1]. Earnings Forecast - The company is expected to have diluted earnings per share of 1.63 yuan, 1.93 yuan, and 2.38 yuan for the years 2025, 2026, and 2027, respectively [1]. - The rating for the company is maintained as "Buy" [1].