Investment Rating - The report maintains a "Recommendation" rating for Yili Te (600197.SH) [1] Core Views - Yili Te's revenue has come under pressure, with a year-on-year decline of 21% in revenue for the first three quarters of 2025, totaling 1.3 billion yuan, and a 43% drop in net profit to 140 million yuan [3][7] - The company is focusing on long-term growth potential by enhancing its product portfolio and brand value, while also expanding its distribution channels [7] Financial Summary - Revenue and Profit Forecasts: - 2025 estimated revenue: 1.738 billion yuan, down 21.1% year-on-year - 2025 estimated net profit: 169 million yuan, down 40.9% year-on-year [6][9] - Margin Analysis: - Gross margin for Q3 2025 is reported at 47.6%, a decrease of 12.2 percentage points year-on-year - Net profit margin for Q3 2025 is -11.1%, down 24.4 percentage points year-on-year [7] - Key Financial Ratios: - Return on Equity (ROE) is projected to decline to 4.3% in 2025 - Price-to-Earnings (P/E) ratio is expected to be 41.0 in 2025 [6][9] Revenue Breakdown - Q3 2025 revenue by product category: - High-end liquor: 150 million yuan, down 39% - Mid-range liquor: 50 million yuan, down 20% - Low-end liquor: 20 million yuan, up 16% [7] - Q3 2025 revenue by channel: - Direct sales: 110 million yuan, down 16% - Wholesale: 80 million yuan, down 51% - Online: 20 million yuan, down 9% [7] - Q3 2025 revenue by region: - Domestic: 170 million yuan, down 24% - Outside Xinjiang: 40 million yuan, down 57% [7]