Investment Rating - The report maintains a "Strong Buy" rating for Luzhou Laojiao, with a target price of 206 CNY [2][7]. Core Views - The company reported a total revenue of 16.45 billion CNY for the first half of 2025, a decrease of 2.7% year-on-year, and a net profit attributable to shareholders of 7.66 billion CNY, down 4.5% year-on-year. In Q2 alone, total revenue was 7.10 billion CNY, down 8.0% year-on-year, and net profit was 3.07 billion CNY, down 11.1% year-on-year [2][7]. - The company is actively managing its inventory and pricing strategies, with a focus on reducing channel pressure and stabilizing core product pricing during the industry adjustment period. The company has also introduced a three-year dividend plan, aiming for a dividend payout ratio of no less than 65% in 2024, 70% in 2025, and 75% in 2026, with a total dividend amount not less than 8.5 billion CNY [2][7][8]. Financial Summary - **Revenue and Profit Forecasts**: - Total revenue is projected to decline to 29.28 billion CNY in 2025, with a year-on-year decrease of 6.1%. The net profit is expected to be 12.28 billion CNY, down 8.9% year-on-year [3][11]. - **Earnings Per Share (EPS)**: - EPS is forecasted to be 8.34 CNY in 2025, 8.15 CNY in 2026, and 9.01 CNY in 2027 [3][11]. - **Valuation Ratios**: - The price-to-earnings (P/E) ratio is projected to be 16 in 2025, 17 in 2026, and 15 in 2027. The price-to-book (P/B) ratio is expected to be 3.8 in 2025, 3.6 in 2026, and 3.3 in 2027 [3][11]. Market Performance - The company has seen a stable number of distributors, with a slight increase to 1,791 by the end of Q2 2025. The core markets in Southwest and North China are experiencing slight pressure, while regions like Northwest and Henan are still in an adjustment phase [2][7][8].

Core Insights - The collaboration between Ziyan Baiwei Chicken and Taobao Flash Sale aims to enhance brand penetration in the online market by targeting young consumers through limited-time promotions [1][3] Group 1: Brand Growth Strategy - Ziyan Baiwei Chicken has over 30 years of history in the marinated food sector and is adapting to changing consumer behaviors with a strategy focused on "omni-channel coverage and long-cycle operations" [3] - The partnership with Taobao Flash Sale aligns with the demand for convenience and cost-effectiveness among young consumers, enhancing the brand's growth through increased business volume [3] - The company is expanding its presence on various e-commerce platforms, including Tmall, JD, Douyin, Kuaishou, and Pinduoduo, while also collaborating with major retailers and food delivery services [3] Group 2: Digital Transformation - Ziyan Baiwei Chicken's omni-channel strategy is supported by a robust digital infrastructure, integrating various management systems to enhance operational efficiency and ensure accurate production and sales coordination [5] - The company has established a cold chain logistics network across multiple regions to ensure next-day delivery of products, utilizing advanced technologies for real-time monitoring of product conditions during transport [5] Group 3: Innovative Marketing Approaches - The company is exploring new digital marketing strategies, including live streaming, to create a new sales ecosystem, exemplified by the "May Day Seven Salad Festival" campaign that effectively reached target consumers [6] - The live streaming events have garnered significant attention, with one event in Jinan attracting over 10,000 viewers and generating substantial sales through coupon redemption [6] - Ziyan Baiwei Chicken is implementing a long-term mechanism for consumer coupons, integrating online and offline sales efforts to create a closed-loop consumption model that enhances overall performance [6]