WLY(SZ:000858) HTSC·2025-08-28 05:28Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 166.40 [1][2][9] Core Views - The company has shown a steady performance with total revenue of RMB 527.7 billion and net profit of RMB 194.9 billion for the first half of 2025, reflecting year-on-year growth of 4.2% and 2.3% respectively [6][9] - The company is focusing on marketing reforms and enhancing brand value, with the introduction of new products expected to contribute to revenue growth in the future [6][9] - Despite facing challenges in Q2 due to external factors, the company remains committed to its strategic goals and aims for high-quality development [6][9] Summary by Sections Financial Performance - For the first half of 2025, total revenue was RMB 527.7 billion, with a net profit of RMB 194.9 billion, showing a year-on-year increase of 4.2% and 2.3% respectively [6][9] - The company’s Q2 revenue was RMB 158.3 billion, with net profit at RMB 46.3 billion, indicating a slight increase of 0.1% year-on-year, but a decline in net profit by 7.6% [6][9] Revenue Breakdown - The revenue from the main brand, Wuliangye, reached RMB 410.0 billion, while series liquor revenue was RMB 81.2 billion, with respective year-on-year growth of 4.6% and 2.7% [7] - The company has expanded its distribution network, adding 7,990 new retail terminals and successfully developing 60 corporate clients [7] Profitability and Cost Management - The gross margin for the first half of 2025 was 76.8%, a decrease of 0.5 percentage points year-on-year, attributed to an increase in lower-priced product sales [8] - The net profit margin for the first half was 36.9%, down 0.7 percentage points year-on-year [8] Future Outlook - The company has adjusted its revenue forecasts for 2025-2027, now expecting revenues of RMB 913.0 billion, RMB 952.3 billion, and RMB 1,002.2 billion respectively, with growth rates of 2.4%, 4.3%, and 5.2% [9] - The expected EPS for 2025 is RMB 8.32, with a PE ratio of 20x based on the company's strong brand positioning [9]