YINGJIA DISTILLERY(SH:603198) HTSC·2025-10-30 12:24Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 49.14 [1][8]. Core Views - The company continues to face challenges in Q3, with a focus on enhancing the performance of its cave-aged liquor series. Despite a decline in overall sales due to weakened external demand and fewer banquet events, the long-term consumption base in the mainstream price range of RMB 100-300 in Anhui remains solid. The company is expected to improve its market share in this segment [6][8]. - The company reported a significant decline in revenue and net profit for the first three quarters of 2025, with total revenue and net profit down by 18.1% and 24.7% year-on-year, respectively. Q3 alone saw a 20.8% drop in revenue and a 39.0% drop in net profit [6][7]. Financial Performance Summary - For the fiscal year 2024, the company is projected to achieve a revenue of RMB 7,344 million, with a year-on-year growth of 9.28%. However, for 2025, revenue is expected to decline by 16.78% to RMB 6,111 million, followed by a recovery in 2026 and 2027 [5][8]. - The net profit attributable to the parent company is forecasted to be RMB 2,589 million in 2024, reflecting a growth of 13.18%, but is expected to drop to RMB 2,031 million in 2025, a decrease of 21.58% [5][8]. - The company's gross margin has decreased by 1.7 percentage points to 72.6% for the first three quarters of 2025, with a further decline to 70.2% in Q3 [7][8]. Market Position and Strategy - The company is focusing on the mass-market segment and aims for balanced development in both provincial and out-of-province markets. The cave-aged liquor series is expected to continue gaining momentum, with a long-term outlook for product structure upgrades [8][10]. - As of Q3 2025, the company has increased its number of distributors in the province to 771, reflecting a net increase of 20 compared to the end of 2024, indicating a strengthening of its market presence [6][8].