Yanghe(SZ:002304) Zhong Jin Zai Xian·2026-01-25 09:01Core Insights - The Chinese liquor industry is undergoing a significant adjustment phase characterized by weak sales, declining profits, and high inventory levels, with a reported production decrease of 11.5% year-on-year from January to October 2025 [1] - Yanghe Co. has leveraged its substantial reserve of 700,000 tons of original liquor to establish a differentiated competitive barrier, positioning itself favorably for future growth despite the industry's challenges [1][4] Industry Overview - The current liquor market is experiencing intensified competition, leading to a rapid industry reshuffle where the strategic value of original liquor reserves has become paramount [2][4] - Many smaller liquor companies are reducing production and compromising on quality due to insufficient original liquor, while leading companies are focusing on volume control and price stability [4] Company Strengths - Yanghe's original liquor reserve is a result of its unique geographical advantages and long-term strategic commitment, with its production site located in a renowned liquor-producing region [4] - The company has consistently adhered to a strategic reserve policy, ensuring a portion of high-quality base liquor is set aside for long-term storage, contributing to its competitive edge [4] Product Strategy - Yanghe has introduced the concept of "real aging" in the light bottle liquor segment, emphasizing a "100% three-year aged" product to align with consumer trends favoring quality over packaging [5][6] - The seventh generation of "Hai Zhi Lan" has undergone a quality upgrade, enhancing its market position through improved taste and sufficient original liquor supply [6] Market Positioning - In the premium segment, the "Meng Zhi Lan M6+" has maintained stable pricing and strengthened its brand value, allowing Yanghe to avoid the pitfalls of price wars [8] - The company is focusing on strategic markets such as the Yangtze River Delta and major cities to reinforce its market presence and address high inventory levels through targeted policies and activities [8][9] Future Outlook - Yanghe's comprehensive strategies, including its original liquor reserves and channel reforms, are expected to create a synergistic effect, potentially leading to a gradual recovery in the market [9] - While challenges remain, such as inventory digestion and regional competition, Yanghe's solid foundation and pragmatic reforms may facilitate a gradual upward trend in performance [9]