Shede Spirits (SH:600702) Ge Long Hui A P P·2025-08-27 05:54Core Viewpoint - The report from Dongfang Securities highlights that despite the overall pressure on the liquor industry, Shede Liquor achieved a significant profit growth in Q2 2025, indicating a recovery trend amidst a challenging market environment [1] Industry Summary - The liquor industry is currently experiencing sales decline and inventory destocking due to weak consumption [1] - Most companies in the industry are facing profit pressure as a result of these market conditions [1] Company Summary - Shede Liquor reported a net profit attributable to shareholders of 97.17 million yuan in Q2 2025, representing a year-on-year increase of 139.48%, showcasing a strong recovery [1] - Revenue from mid-to-high-end liquor and ordinary liquor in Q2 2025 was 740 million yuan and 240 million yuan, respectively, with year-on-year changes of -16% and +62% [1] - The company is focusing on building core base markets to secure advantageous profit regions and enhance its ability to withstand risks during economic downturns [1] - Revenue from domestic and foreign markets in Q2 2025 was 290 million yuan and 690 million yuan, with year-on-year changes of -21% and +5%, indicating a faster recovery in the foreign market [1] - The company plans to continue developing a multi-brand, full-price, and full-channel base market strategy, particularly strengthening its presence in East China, South China, and Chongqing [1] - Shede Liquor aims to establish a comprehensive marketing operation system and advance digital upgrades to support a multi-brand marketing matrix, supply chain collaboration, and integrated financial management, which will promote cost reduction and efficiency improvement [1] - The company is given a target price of 78.28 yuan based on a 38 times PE valuation for 2025, maintaining a "buy" rating [1]