JINHUI(SH:603919) EBSCN·2025-12-27 13:25Investment Rating - The report gives an "Accumulate" rating for the company, marking its first coverage [4][6]. Core Insights - The Gansu liquor market is approaching a scale of nearly 100 billion yuan, with local brands holding a significant market share. The consumption upgrade is ongoing, with the mainstream price point for general liquor around 100 yuan and business banquets primarily at 150-200 yuan. Gansu's economic development, driven by investment attraction, supports this upgrade [1][21]. - Jinwei Liquor, located in the "Jiangnan of Longshan," has a long-standing brand history and has initiated a "second entrepreneurship" since 2018. The company aims for long-term growth through stable management and employee profit-sharing plans [2][49]. - The company is optimizing its product structure, with a significant increase in the revenue share of products priced above 100 yuan, expected to reach 71% by 2024. The company is also expanding its market presence in surrounding provinces while maintaining a strong foothold in Gansu [3][65]. Summary by Sections Gansu Liquor Market - The Gansu liquor market is estimated to be around 100 billion yuan, with local brands dominating the market. The consumption upgrade is evident as the mainstream price point is transitioning from around 100 yuan to 200 yuan [1][21]. - Local liquor brands account for over 70% of the market share, with Jinwei holding approximately 20% and continuing to increase its share [1][38]. Jinwei Liquor Overview - Jinwei Liquor has a rich history and is recognized as a leading brand in Gansu. The company has undergone significant changes since its establishment, including a successful listing in 2016 and a shift in control back to the original parent group in 2022 [2][49]. - The management team is experienced and stable, with a focus on long-term performance and employee engagement through profit-sharing mechanisms [2][57]. Product and Market Strategy - The company is focusing on upgrading its product structure, with a notable increase in high-end product offerings. The revenue from products priced above 100 yuan is projected to grow significantly [3][65]. - Jinwei is pursuing a national expansion strategy while deepening its presence in Gansu, particularly in the eastern and central regions where it has established strong brand recognition [3][65]. Financial Projections and Valuation - The company is expected to achieve revenues of 30.2 billion yuan in 2024, with a compound annual growth rate (CAGR) of approximately 11% since its listing. The projected net profits for 2025-2027 are 3.76 billion, 4.09 billion, and 4.43 billion yuan, respectively [4][6]. - The current price-to-earnings (P/E) ratio is projected to be 28, 25, and 23 for the years 2025, 2026, and 2027, respectively, indicating a favorable valuation compared to industry peers [4][6].