Investment Rating - The report maintains a "Recommendation" rating for the company with a target price of 78 yuan [2][6]. Core Insights - The company reported a revenue of 2.7 billion yuan for the first half of 2025, a decrease of 17.4% year-on-year, while the net profit attributable to shareholders was 440 million yuan, down 25.0% year-on-year. However, in Q2 alone, revenue was 1.13 billion yuan, a decline of 3.4%, but net profit increased by 139.5% to 100 million yuan [2][6]. - The company is focusing on cost reduction and efficiency improvement to enhance profitability, despite facing cash flow pressures and slower collection rates [6][7]. - The strategy for the second half of the year is expected to be more aggressive, with a focus on inventory reduction and market expansion [6][7]. Financial Performance Summary - **Revenue and Profit Forecasts**: - Total revenue is projected to decline from 5.36 billion yuan in 2024 to 4.69 billion yuan in 2025, with a subsequent recovery to 5.58 billion yuan by 2027 [2][6]. - Net profit is expected to recover from 345 million yuan in 2024 to 711 million yuan in 2025, reaching 954 million yuan by 2027 [2][6]. - **Earnings Per Share (EPS)**: - EPS is forecasted to increase from 1.04 yuan in 2024 to 2.14 yuan in 2025, and further to 2.86 yuan by 2027 [2][6]. - **Valuation Ratios**: - The price-to-earnings (P/E) ratio is projected to decrease from 59 times in 2024 to 21 times in 2027, while the price-to-book (P/B) ratio is expected to decline from 3.0 times to 2.4 times over the same period [2][6]. Market and Product Insights - Q2 revenue decline was less severe than expected, with ordinary liquor showing significant growth of 62.3% year-on-year, driven by market penetration strategies [6][7]. - The company is actively working on inventory reduction and has seen some regions stabilize, with plans to launch new products and enhance distribution channels [6][7].