Yanghe(SZ:002304) Changjiang Securities·2025-08-23 15:03Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - In the first half of 2025, the company reported operating revenue of 14.796 billion yuan, a year-on-year decline of 35.32% - The net profit attributable to shareholders was 4.344 billion yuan, down 45.34% year-on-year [2][4]. - In Q2 2025, the company achieved operating revenue of 3.729 billion yuan, a decrease of 43.67% year-on-year, with net profit of 707 million yuan, down 62.66% year-on-year [2][4]. Financial Performance - The company's revenue from outside the province was 7.392 billion yuan, a decline of 43% year-on-year, while revenue from within the province was 7.121 billion yuan, down 26% year-on-year [8]. - Revenue from mid-to-high-end liquor was 12.672 billion yuan, a decrease of 37% year-on-year, primarily due to the company's strategy of controlling volume and stabilizing prices for key products [8]. - The net profit margin for the first half of 2025 decreased by 5.38 percentage points to 29.36%, with a gross margin decline of 0.33 percentage points to 75.02% [8]. Cost and Expenses - The company's expense ratio increased, with the selling expense ratio rising by 3.1 percentage points and the management expense ratio increasing by 1.73 percentage points [8]. - Advertising and promotional expenses amounted to 1.45 billion yuan, a decrease of 21.03% year-on-year, mainly due to reduced advertising costs and rebates [8]. Future Outlook - The company is actively controlling inventory, which has shown initial results, and the prices of core products remain stable [8]. - The company is expected to see marginal improvements in performance as inventory is gradually reduced, alongside a strong dividend capability [8]. - The estimated EPS for 2025 and 2026 is projected to be 3.19 yuan and 3.41 yuan, respectively, corresponding to a valuation of 23 and 22 times [8].