Core Viewpoint - The report from China Merchants Securities maintains a "strongly recommended" rating for Zhenjiu Lidu (06979), highlighting the innovative model that is expected to drive long-term growth [1][2] Group 1: Financial Performance and Projections - For the first half of 2025, the company is expected to clear its financial statements, with the launch of the "Dazhen" product aimed at addressing industry changes [1] - Projections for adjusted net profits for 2025-2027 are 1.41 billion, 1.54 billion, and 1.88 billion yuan respectively, with a corresponding price-to-earnings ratio of 26.8 times for 2025 [1] Group 2: Strategic Initiatives - The company announced an equity payment plan that does not involve issuing new shares, primarily funded through donations from the controlling shareholder and some purchases in the secondary market, not exceeding 5% of the total issued shares [1] - The announcement reflects the high strategic positioning of the Dazhen product, with significant support from the controlling shareholder, Wu Xiangdong, who integrates resources from his other companies to bolster Dazhen [2] Group 3: Market Position and Future Outlook - The Dazhen model is seen as effectively addressing current channel pain points, with its innovative approach possessing unique industry characteristics [2] - The adjustment period in the industry is viewed as a critical development phase for companies, with initial returns for alliance merchants already being realized, which is expected to positively influence future expansion [2] - Ongoing observation of the company's pricing management and consumer feedback on products is necessary, with a long-term positive outlook on the expansion of the Dazhen model [2]