Huachuang Securities issued a research report, stating that on the 21st, Zhenjiu Lidu (06979) held its annual shareholder meeting and investor day. This is the first shareholder meeting held in Zunyi after Zhenjiu Lidu went public and attracted more than 150 shareholders and investors to attend. The company believes that although small and medium-sized liquor companies are accelerating their exit during the current pressure cycle, the performance of the head liquor companies remains stable, and they have confidence in the industry's development this year and next year. The company will continue to strengthen itself through product, channel, and market development, explore the integration of "food + wine", focus on core markets, and accurately reach core customer groups.
The company made adjustments to its products and channels in the first half of the year, which steadily improved sales and bottle opening rates, and achieved stable growth in performance. With more efforts in the second half of the year, growth potential is even stronger, and combined with stock-based incentives to safeguard, the certainty of achieving the annual target remains strong. Considering the gradual cost dilution after the gradual use of self-produced base liquor and the improvement of channel efficiency, profit elasticity may accelerate. The bank maintains its EPS forecast for 2024-2026 at 0.60/0.74/0.91 yuan and target price of HKD14, and maintains a "strong recommendation" rating.