Yanghe(SZ:002304) Cai Jing Wang·2025-11-05 07:09Core Viewpoint - The white liquor industry is experiencing a recovery in channel confidence, with Yanghe showing signs of channel repair and a positive trend in contract liabilities, indicating a potential turnaround for the company and the industry as a whole [1][2]. Company Summary - Yanghe's revenue for the first three quarters of 2023 reached 18.09 billion yuan, with a net profit of 3.975 billion yuan [2]. - As of the end of Q3, Yanghe's contract liabilities amounted to 6.42 billion yuan, reflecting a quarter-on-quarter increase of 5.5 billion yuan, indicating a recovery in channel confidence [2]. - The company has implemented a strategy to control inventory and stabilize prices, leading to a slight increase in the prices of core products compared to the beginning of the year [2][6]. - Yanghe's focus on quality has led to significant investments in production capacity, totaling nearly 4 billion yuan since 2011, resulting in a robust supply chain and a strong foundation for product quality [6]. Industry Summary - The white liquor industry is expected to see a shift in demand dynamics, with a consensus emerging around the recovery of mid-tier products and positive sentiment for the upcoming Spring Festival [1][4]. - The industry has faced significant pressure in recent years, but the third quarter of 2023 marks a turning point as companies begin to release reporting pressures and adjust their strategies [3][4]. - There is a notable improvement in sales performance for mid-tier products, with some brands reporting positive growth in sales volume compared to last year [5]. - The industry is anticipated to experience a recovery in sales during the 2026 Spring Festival, with the end-of-year reporting and subsequent sales growth serving as critical indicators of the industry's bottoming out [6].