Investment Rating - The investment rating for Yanjing Beer is "Buy" (maintained) [2] Core Views - The company reported a strong performance in H1 2025, with total revenue of 8.558 billion yuan, a year-on-year increase of 6.4%, and a net profit attributable to shareholders of 1.103 billion yuan, up 45.5% year-on-year. The non-recurring net profit also exceeded expectations [7] - Yanjing Beer is focusing on strengthening its core product U8 and expanding its product matrix with regional and specialty products, which positions the company well for growth amid the industry's premiumization trend [7] - The company is expected to maintain a robust net profit growth rate due to improved internal management and capacity utilization [7] Financial Data and Profit Forecast - Total revenue forecast for 2025 is 15.532 billion yuan, with a year-on-year growth rate of 5.9%. The net profit attributable to shareholders is projected to be 1.471 billion yuan, reflecting a year-on-year increase of 39.4% [6] - The gross profit margin for H1 2025 was 45.5%, with an expected increase in profitability due to cost control and improved operational efficiency [7] - The company’s earnings per share (EPS) for 2025 is estimated at 0.52 yuan, with a price-to-earnings (PE) ratio of 25 for 2025 [6][7]

Core Viewpoint - Yanjing Beer reported strong financial performance in Q1 2025, with significant profit growth driven by revenue increase and effective cost control [2][4]. Financial Performance - Total revenue and net profit for Q1 2025 were CNY 3.827 billion and CNY 165 million, respectively, representing year-on-year growth of 7% and 61% [2]. - The non-recurring net profit was CNY 153 million, up 49% year-on-year [2]. - Gross margin and net margin improved to 43% and 6%, reflecting increases of 5.6 and 2.3 percentage points year-on-year [2]. - Operating cash flow and sales collection showed robust growth, with operating cash flow at CNY 1.333 billion (up 49%) and sales collection at CNY 4.713 billion (up 10%) [2]. Product Strategy - Beer sales reached 995,000 tons in Q1 2025, with the flagship product Yanjing U8 maintaining over 30% growth [3]. - The company is focusing on high-end products, with brands like "Jiuhao" targeting the raw beer market and "Lion King" aimed at premium craft beer consumers [3]. - The introduction of Beiste soda in March 2025 marks a strategic move into the non-alcoholic segment, enhancing market coverage for dining scenarios like hot pot and barbecue [3]. - The appointment of a brand ambassador has significantly increased market exposure, with discussion volume reaching 330 million across major platforms [3]. Profit Forecast - The company is expected to maintain high profit growth driven by the continued expansion of mid-to-high-end products, particularly U8, and ongoing operational improvements [4]. - EPS forecasts for 2025-2027 are CNY 0.51, CNY 0.62, and CNY 0.75, with corresponding PE ratios of 25, 21, and 17 times at the current stock price [4].