Investment Rating - The report maintains an "Outperform" rating for Wuliangye [2][10][17] Core Insights - Wuliangye's 29th Distributor Conference emphasized "Consensus, Co-construction, and Shared Benefits," outlining strategies for long-term growth amid industry restructuring [3][12][13] - The company is focusing on three core strategies: restructuring manufacturer-retailer relationships, innovating pricing strategies, and enhancing internationalization efforts [3][13] - Wuliangye aims to increase its market penetration among younger consumers and expand its product offerings, particularly targeting banquet scenarios [4][14] Financial Projections - Revenue projections for 2025-2027 are RMB 744 billion, RMB 773 billion, and RMB 814 billion, respectively, with net profits of RMB 255 billion, RMB 261 billion, and RMB 273 billion [6][17] - The expected diluted EPS for the same period is RMB 6.6, RMB 6.7, and RMB 7.0 [6][17] - The target price has been adjusted from RMB 164 to RMB 161, reflecting a 24x PE for 2026 [6][17] Market Dynamics - The liquor industry is experiencing a shift from simultaneous volume and price growth to a focus on quality-price balance, with demand stratification expected to deepen [5][15] - The report anticipates a recovery in demand for mid-tier products (RMB 1,000-1,500) and growth in the mass market (below RMB 300) [5][15]

Core Insights - The 29th 12·18 Consensus Building and Sharing Conference of Wuliangye was held in Yibin, focusing on "New Situation, New Opportunities, New Journey" [1] Group 1: Marketing Strategy for 2026 - Wuliangye's General Manager, Hua Tao, outlined the marketing strategy for 2026, emphasizing a focus on brand value enhancement and effective market share growth [4] - The company aims to implement a "core" strategy to continuously improve brand value, alongside three strengthening areas: marketing reform, market response strategies, and execution capabilities [4] Group 2: 2025 Marketing Achievements - In 2025, the eighth generation of Wuliangye maintained a balanced approach to pricing and volume, achieving over 30% growth in low-alcohol banquet events and opening bottle rates [3] - The 1618 product's opening bottle scan rate increased to 59%, with banquet activities growing by over 20% year-on-year [3] - The "Yijian Qingxin" product achieved over 100 million in sales within two months of its launch [3] Group 3: Channel Network Development - Wuliangye is enhancing its channel network by optimizing traditional channels and expanding e-commerce partnerships, including a strategic collaboration with JD.com [3][8] - The company added 474 new "three stores in one" locations and terminated partnerships with 55 underperforming clients [3] - New emerging channels generated 4.5 billion in sales revenue, with a conversion rate of 70% from corporate clients [3] Group 4: Brand and Product Innovation - The company is committed to brand innovation, focusing on cultural depth and enhancing brand storytelling [5] - Wuliangye emphasizes traditional craftsmanship and ecological brewing in its production management while pursuing technological innovations [6] - The product matrix is being developed to include a diverse range of offerings, including "white liquor+" products [6] Group 5: Market Expansion Strategies - Wuliangye plans to target specific market segments, aiming to position the eighth generation of Wuliangye as the leading product in the 1,000 yuan price range [9] - The company is also focusing on younger consumers and expanding its presence in the international market [10] Group 6: Management and Digital Transformation - The company is enhancing its marketing execution efficiency through reforms in management mechanisms and market governance [11] - Wuliangye is advancing its digital transformation by creating a unified membership service platform and an AI-driven marketing system [12]