Core Viewpoint - The article emphasizes the profound transformation in the liquor industry, highlighting trends such as younger consumer demographics, daily consumption scenarios, quality-driven preferences, digital channels, and emotional value. Companies must adapt to these changes and focus on their core strengths to navigate uncertainties in the external environment [1]. Industry Overview - The liquor industry has entered a deep adjustment phase in 2024, testing the operational resilience of companies. Despite this, Wuliangye has maintained steady growth in revenue and net profit for ten consecutive years, with continued positive growth in Q1 2025 [2][3]. - Wuliangye's management has committed to a "steady development" strategy, focusing on qualitative improvements and reasonable growth in revenue, aligning with macroeconomic indicators [2]. Strategic Initiatives - Wuliangye aims to center its strategy around customers and the market, implementing tailored approaches for different products, regions, and channels to reconstruct the "people, goods, and market" logic in liquor consumption [2]. - The company has introduced a marketing system reform, establishing a sales company and implementing a regional responsibility system to enhance market responsiveness [7]. Financial Performance and Shareholder Returns - Wuliangye has committed to a minimum dividend payout ratio of 70% and a cash dividend of no less than 20 billion yuan annually. The 2024 dividend plan includes a cash distribution of 31.69 yuan per 10 shares, totaling 22.3 billion yuan for the year [3][13][14]. - The company has consistently increased its dividend payout ratio over the years, reflecting a commitment to enhancing shareholder returns [14]. Market Position and Growth Strategies - Wuliangye's core product, the eighth generation of Wuliangye, has achieved a balance of volume and price, maintaining its leading position in the premium price segment. The company has also expanded its product matrix with new offerings [4]. - The company is actively exploring new market channels, including e-commerce, which has seen over 20% growth this year [10]. Consumer Engagement and Innovation - Wuliangye is focusing on younger consumers by launching new products that cater to their preferences for lower alcohol content and smoother flavors. The company has opened a trendy experience store to attract younger demographics [11][12]. - The company is also enhancing its brand culture and key personnel operations to strengthen market segmentation and channel expansion [8]. Investor Confidence - Wuliangye's stock price rose nearly 2% following the shareholder meeting, indicating strong investor confidence in the company's stable operations and future growth potential [16].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 10.39 [8][9]. Core Views - The company is expected to improve its operational income ratio, enhancing profit quality while reducing low-margin construction business and new investments [1][2]. - The company aims to continue reducing capital expenditures and increasing dividend payouts, indicating a positive outlook for shareholder returns [4][5]. Revenue and Profitability - In 2024, the company's revenue from waste disposal business is projected to be RMB 48.8 billion, a decrease of 20.8% year-on-year, with operational revenue increasing by 12.7% [2]. - The gross margin for waste disposal is expected to rise by 9.0 percentage points to 37.6% due to the decline in low-margin construction business [2]. - The company's attributable net profit for 2024 is forecasted at RMB 20.2 billion, down 18.0% year-on-year, which is below previous expectations [1][5]. Joint Venture Performance - The company's share of profits from joint ventures is expected to be RMB 13.2 billion in 2024, a decrease of 20.8% year-on-year, but with signs of recovery in the second half of 2024 due to price recovery in the cement industry [3]. Investment Activities - The company has significantly reduced its cash outflow for investment activities to RMB 24.3 billion in 2024, down 46.8% from 2023 [4]. - The proposed dividend for 2024 is HKD 0.3 per share, with a special dividend of HKD 0.1, resulting in a total payout ratio of 32%, up from 13% in 2023 [4]. Earnings Forecast and Valuation - The forecast for attributable net profit is adjusted to RMB 24.8 billion for 2025 and RMB 27.6 billion for 2026, reflecting a downward revision of 10% and 8% respectively [5]. - The target price is slightly adjusted downwards to HKD 10.39 based on a segment valuation method [5].