Investment Rating - The investment rating for Luzhou Laojiao is "Outperform the Market" (maintained) [1] Core Views - The report highlights that Luzhou Laojiao achieved steady growth in 2024, with digital transformation showing initial results. Key performance indicators such as core product opening rates, membership assets, and the number and quality of strategic terminals have all improved. The company aims to focus on market cultivation and enhance profitability through its distributors in 2025, maintaining a long-term perspective [2][3][4] Summary by Sections 2024 Performance Review - In 2024, Luzhou Laojiao's revenue and net profit grew by 11% and 10% year-on-year, respectively. The company is expected to achieve record-high performance, with the Guojiao brand sales exceeding 20 billion and Luzhou Laojiao brand sales surpassing 10 billion. The digital transformation framework has been established, leading to improvements in core product opening numbers and terminal quality [3][4] 2025 Outlook - For 2025, the company will focus on six major shifts in its marketing strategy, emphasizing sales and consumer-centric approaches. The strategy includes deepening market penetration in strategic areas and enhancing digital capabilities to support sales and channel management [4][5] Management and Digital Transformation - Luzhou Laojiao's management capabilities and marketing execution remain strong, with a proactive sales team that excels in network refinement and consumer engagement. The company is leading the industry in digital transformation, transitioning from a "single merchant model" to a "single customer model" to drive channel profitability [5][6] Financial Forecasts - The revenue forecasts for 2024-2026 are 31.805 billion, 33.491 billion, and 36.898 billion, respectively, with year-on-year growth rates of 5.2%, 5.3%, and 10.2%. The projected net profit for the same period is 13.883 billion, 14.817 billion, and 16.619 billion, reflecting growth rates of 4.8%, 6.7%, and 12.2%. The current stock price corresponds to a valuation of 13.4x, 12.6x, and 11.2x for the respective years, indicating a strong valuation support [7][10]

Investment Rating - The report does not explicitly provide an investment rating for the securities industry or the specific company being analyzed [1]. Core Insights - The company has initiated a digital transformation since 2021, focusing on building a data foundation to enhance digital capabilities, resulting in the launch of 28 significant applications to improve customer engagement and service quality [18][20]. - The company plans to increase its proprietary investment scale in response to regulatory encouragement for long-term capital market participation, aiming to enhance overall capital efficiency [18][19]. - The asset management division is strategically positioned to leverage its public fund license and is focusing on passive equity products, particularly in the index investment space, to meet diverse client needs [20][21]. - The company is expanding its international business by following the needs of local enterprises, particularly in the "Belt and Road" regions, and aims to integrate domestic and international client services [22][23]. - The asset-backed securities (ABS) business has seen significant growth, with a total issuance of 173 ABS products amounting to 1,391.13 billion, indicating a strong market position [24]. Summary by Sections 01 Research Overview - The research was conducted on February 26, 2025, focusing on the securities industry and involved multiple financial institutions [1][13]. 02 Detailed Research Institutions - The research involved seven fund management companies and one other financial company, with a significant representation from fund management firms [14][16]. 04 Main Content Information - The company is actively enhancing its AI capabilities to improve investment advisory services and customer interactions, aiming for a comprehensive digital transformation [18]. - The company is committed to expanding its asset management capabilities, particularly in passive investment products, to cater to varying risk appetites among clients [21]. - The company has established a strong presence in the ABS market, with a focus on innovative products in response to national policy directions [24].