SCSF(SH:600779) Sou Hu Cai Jing·2025-09-15 08:15Core Viewpoint - The Chinese liquor industry, particularly the baijiu sector, is undergoing significant pressure with over 80% of the 20 listed baijiu companies experiencing revenue declines due to macroeconomic challenges, consumer differentiation, and high channel inventory [1] Group 1: Company Performance - Water Jiufang reported a revenue of 1.498 billion yuan and a net profit of 105 million yuan for the first half of 2025, both showing declines [1] - Despite the declines, institutions like Huatai Securities and Guojin Securities have given "buy" and "strongly recommended" ratings for Water Jiufang, indicating a focus on the company's long-term value and strategic execution [1][3] Group 2: Strategic Focus - Water Jiufang emphasizes channel health management, sacrificing short-term growth for long-term stability, and has taken measures against market disruptions such as low-price dumping [4] - The company employs a differentiated channel strategy, achieving over 126% revenue growth in new channels and increasing terminal coverage and operational efficiency [5] Group 3: Brand and Market Positioning - Water Jiufang maintains a high-end brand positioning while adopting flexible product and pricing strategies to meet consumer demand during industry adjustments [6][8] - The company is committed to dual-brand operation, enhancing its high-end image while introducing high-quality, cost-effective products to cater to diverse consumer trends [8] Group 4: ESG Commitment - Water Jiufang has achieved a BBB rating in MSCI ESG ratings, ranking among the top in the baijiu industry, and has implemented sustainable practices in raw material sourcing and production [9][11] - The company has initiated a non-material cultural heritage protection fund and established organic sorghum planting bases to support rural revitalization [11] Group 5: Long-term Outlook - The current industry phase is seen as a critical period for internal strengthening, with Water Jiufang focusing on channel cultivation, brand development, and ESG investments to build long-term barriers [12][13] - The cyclical fluctuations in the baijiu industry do not diminish its long-term value, and Water Jiufang's strategic patience may position it for high-quality growth in future recovery cycles [13]