Core Viewpoint - The company reported a decline in revenue and net profit for Q2 2025, with revenue at 7.102 billion (-7.97%) and net profit at 3.070 billion (-11.10%) [1] Revenue Summary - Q2 2025 revenue was 7.102 billion, a decrease of 7.97%, while H1 2025 revenue was 16.454 billion, down 2.67% [1] - The company experienced rational growth in revenue, with mid-to-high-end and other liquor categories showing declines of 1.1% and 17.0% respectively in H1 2025 [3] - The company added 2 new domestic distributors during H1 2025, with traditional channel revenue down 4.0% and emerging channel revenue up 27.6% [3] Profit Summary - The gross margin for Q2 2025 decreased by 0.95 percentage points to 87.9%, primarily due to product mix issues [4] - The net profit margin for Q2 2025 fell by 1.5 percentage points to 43.2%, influenced by rising tax and additional charges [4] Financial Quality Summary - Sales cash receipts decreased by 15.1% year-on-year in Q2 2025, but the willingness for channel cooperation remained strong [5] - Accounts receivable financing increased by 210 million in Q2 2025, indicating that distributors are increasingly using notes for payments [5] Investment Outlook - The company maintains a "buy" rating, anticipating growth in H2 2025 through refined channel strategies and new product launches [6] - Updated profit forecasts predict revenues of 29.474 billion, 30.203 billion, and 33.375 billion for 2025-2027, with corresponding net profits of 12.472 billion, 12.947 billion, and 14.457 billion [6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company reported its Q2 2025 performance, with a gross margin decrease of 0.95 percentage points year-on-year to 87.9%, primarily due to product mix issues. The net profit margin also declined by 1.5 percentage points to 43.2% [9][12] - Despite a 15.1% year-on-year decrease in cash sales, the company showed strong channel cooperation willingness, with a slight increase in "revenue + Δ contract liabilities" by 0.6% year-on-year [10] - Looking ahead to the second half of 2025, the company is expected to enhance channel penetration and adapt to younger and lower-alcohol consumption trends, with new products likely to drive growth [11] Financial Performance Summary - For Q2 2025, the company achieved revenue of 7.102 billion (down 7.97%) and a net profit of 3.070 billion (down 11.10%) [12] - For the first half of 2025, revenue was 16.454 billion (down 2.67%) and net profit was 7.663 billion (down 4.54%) [12] - The company anticipates achieving total revenues of 29.474 billion, 30.203 billion, and 33.375 billion for 2025, 2026, and 2027 respectively, with corresponding net profits of 12.472 billion, 12.947 billion, and 14.457 billion [13][15] Financial Metrics - The company’s projected P/E ratios for 2025, 2026, and 2027 are 16, 15.44, and 13.83 respectively [13][15] - The gross margin is expected to be 85.2% in 2025, improving to 86.3% by 2027 [15] - The return on equity (ROE) is projected to decline from 28.4% in 2024 to 20.8% in 2025, stabilizing at 19.3% from 2026 onwards [15]