Shede Spirits (SH:600702) Ge Long Hui·2025-10-31 05:36Core Viewpoint - Dongwu Securities report indicates that Shede Spirits experienced a significant decline in net profit for the first three quarters of 2025, with a year-on-year decrease of 29.4% to 470 million yuan, and a 63.2% drop in Q3 net profit to 30 million yuan [1] Financial Performance - For Q1 to Q3 of 2025, Shede Spirits achieved a net profit attributable to shareholders of 470 million yuan, reflecting a year-on-year decline of 29.4% [1] - In Q3 alone, the net profit attributable to shareholders was 30 million yuan, showing a substantial year-on-year decrease of 63.2% [1] Revenue and Sales Strategy - Q3 revenue faced pressure, leading the company to prioritize inventory clearance [1] - In the second half of 2025, the company adjusted its sales pace and enhanced its presence in internet, instant retail, and key account channels to drive growth [1] Future Outlook - The company anticipates a further decline in gross margin in 2025, but expects revenue stabilization in 2026, which may lead to a resonance between profit and revenue growth [1] - Based on the profit levels for the first three quarters of 2025, the net profit forecasts for 2025 to 2027 have been adjusted to 500 million, 510 million, and 680 million yuan respectively, down from previous estimates of 640 million, 780 million, and 980 million yuan [1] - The current market capitalization corresponds to a price-to-earnings ratio (PE) of 39, 39, and 29 times for the years 2025 to 2027 [1] - The company maintains an "overweight" rating [1]