WLY(SZ:000858) Dongxing Securities·2025-09-08 10:52Investment Rating - The report maintains a "Strong Buy" rating for Wuliangye [2][6] Core Views - Wuliangye achieved revenue of 52.771 billion yuan in H1 2025, a year-on-year increase of 4.19%, and a net profit attributable to shareholders of 19.492 billion yuan, up 2.28% year-on-year. The Q2 revenue was 15.831 billion yuan, with a slight increase of 0.1% year-on-year, while net profit decreased by 7.58% to 4.632 billion yuan [3] - The gross margin for liquor products was 82.20%, a decrease of 0.39% year-on-year, primarily due to increased market investment and lower pricing strategies for certain products [3] - The company has improved its cash flow, with a 12% increase in cash received from sales in Q2 and an 18.4% increase in operating cash flow [4] - Wuliangye is focusing on channel development, adding 7,990 new purchasing terminals and enhancing its market influence through various initiatives [5] - The company plans to distribute a cash dividend of 12.301 billion yuan for 2024, with a payout ratio of 70.01%, indicating strong shareholder returns [6] Financial Performance Summary - In H1 2025, Wuliangye's liquor products saw a 4.6% increase in revenue, with a 12.7% increase in sales volume, while the average price per ton decreased by 7.2% [3] - The company’s sales expense ratio in Q2 was 18.88%, an increase of 1.54 percentage points year-on-year, attributed to increased promotional spending [4] - The forecast for 2025 indicates a net profit of 32.012 billion yuan, a 0.5% increase year-on-year, with an EPS of 8.25 yuan [6] - The total market capitalization of Wuliangye is approximately 487.18 billion yuan, with a PE ratio of 14.12 times [7]