WLY(SZ:000858) Minsheng Securities·2025-08-29 12:17Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for the stock price over the next 12 months [5]. Core Insights - The company reported a revenue of 52.77 billion yuan and a net profit attributable to shareholders of 19.49 billion yuan for the first half of 2025, reflecting a year-on-year increase of 4.19% and 2.28% respectively [1]. - The focus on banquet markets has led to a double-digit growth in both the number of events and bottle openings, although overall performance showed an increase in volume but a decrease in price [1]. - The company launched a new low-alcohol product aimed at younger consumers, which is expected to contribute to revenue growth in the second half of the year [1]. Revenue Breakdown - The main liquor segment achieved a revenue of 49.12 billion yuan in the first half of 2025, with a volume increase of 44.59% but a price decrease of 27.89%, resulting in a gross margin decline of 0.39 percentage points to 82.20% [1]. - The revenue from Wuliangye products was 40.99 billion yuan, with a volume increase of 12.75% and a price decrease of 7.25% [1]. - Other liquor products generated a revenue of 8.12 billion yuan, with a significant volume increase of 58.81% but a price drop of 35.31% [1]. Regional Performance - The company restructured its marketing regions into three major areas, with the Eastern region showing the best growth at 7.88% year-on-year [2]. - Revenue from the Northern and Southern regions increased by 1.82% and 1.93% respectively [2]. Channel Performance - Revenue from distribution and direct sales reached 27.93 billion yuan and 21.20 billion yuan respectively, with direct sales growing faster than the overall market [2]. - The company has been expanding its direct sales channels, increasing the number of exclusive stores to 1,768 by the end of Q2 [2]. Profitability Metrics - The gross margin for the first half of 2025 was 76.83%, down 0.53 percentage points year-on-year, while the net profit margin was 36.94% [3]. - The company expects net profits to recover in the coming years, projecting 30.40 billion yuan in 2025, a decrease of 4.6% from the previous year, followed by growth in subsequent years [5][6]. Financial Forecast - The company is projected to achieve revenues of 89.69 billion yuan in 2025, with a growth rate of 0.6% [6]. - The earnings per share are expected to be 7.83 yuan in 2025, with a price-to-earnings ratio of 17 [6].