CMS·2025-03-31 12:01Investment Rating - The report maintains a "strongly recommended" rating for several key companies in the industry, indicating a positive outlook for their stock performance [2][49]. Core Insights - The industry is currently experiencing a "distress period" for liquor companies, with clear signals of stock price bottoms emerging. Although demand has not yet shown signs of reversal, the trend of supply contraction is evident. The market's supply-demand relationship is improving, and stock prices may lead the fundamentals by 2-3 quarters before bottoming out [10][49]. - Companies are adopting more pragmatic and stable operational strategies, focusing on inventory control and price stability. This approach has led to improved perceptions among distributors, despite overall weak demand [8][9]. Summary by Sections Overall Viewpoint - Demand is weak but meets expectations, with improved distributor sentiment due to inventory control and price stability. The industry is in a phase of adjustment, with companies learning from past cycles and focusing on mid-range products to align with current consumer trends [8][9]. Key Listed Company Feedback 1. Wuliangye: Undergoing comprehensive reforms, including inventory control and establishing new sales platforms to enhance market reach [13][14]. 2. Luzhou Laojiao: Maintaining a strong digital strategy, with better-than-expected sales performance and low inventory levels [15][17]. 3. Shanxi Fenjiu: Exhibiting excellent operational quality and strategic capabilities, with a focus on stable growth and market expansion [20][22]. 4. Shui Jing Fang: Launching a dual-brand strategy to enhance brand positioning and consumer engagement [25][29]. 5. Jiangsu Yanjing: Aiming for national expansion with strong performance in local markets and a focus on high-quality products [37][39]. 6. Gu Qing: Adapting product strategies to meet market demands, with continued growth in sales despite increased competition [44]. Channel and Industry Expert Feedback - Experts indicate that the liquor industry is in a bottoming phase, with expectations of continued adjustments in 2025. Companies are focusing on strategic reforms and risk management to navigate the current market challenges [45][46]. Investment Recommendations - The report suggests that the bottom is being established, with potential for stock price reversals. Key recommendations include Luzhou Laojiao, Shanxi Fenjiu, and Wuliangye, among others, based on their improved market dynamics and operational efficiencies [49].