Summary: Investment logic: In the wine business, the company has competitive advantages in raw materials, quality and brand, and marketing is its shortcoming. Management is undertaking new experiments, advertising investment has brought positive results, and marketing channels are gradually being improved. We judge that the growth of the company's short-term wine performance will accelerate. This is a transactional opportunity, and the market has already anticipated it. Due to being dragged down by the malt business and constrained by its own institutional mechanisms, the sustainability and intensity of growth in the later stages still need to be observed. Changes in the equity structure: Since its listing in 2004, the company's equity structure has gradually become clear and reasonable due to changes in the industry pattern and business development needs, and the actual controller is still the Gansu Provincial State-owned Assets Administration Commission. The equity structure was smooth due to the reduction in the number of company-related transactions and the stability of the governance structure. Operational efficiency: The company experienced two rounds of financing, but due to changes in the industry pattern and mistakes in the company's strategic choices, the competitive advantage established by low-cost debt financing was weakened, the efficiency of the use of capital was reduced, and the scale of assets also stagnated, and good development opportunities for the wine industry were missed. Whether it is an integrated wine business, a diversified barley business, or pharmaceutical business, the company's operating efficiency is relatively low. This issue is expected to persist for some time. Business quality: The company has achieved a steady expansion in the scale of wine through increased distribution. The scale of the pharmaceutical business has remained basically the same, and the scale of barley fluctuates greatly. The gross margin of wine has been rising steadily, becoming the main contributor to performance, showing a sharp rise in volume and price recently; barley's gross margin fluctuates greatly, and gross margin also shows a trend of declining year by year, which will still be a burden on the company's development in the short term; the average gross margin of the pharmaceutical business is 34.23%, but the gross margin fluctuates relatively large. Currently, wine has become the most promising business, and there is a possibility of breakthroughs under the gradual advancement of the company's management, but malt is still an elbow for improving performance. Profit forecast and valuation: We expect the revenue of the wine business to be $337 million, $436 million and $5.75 billion respectively; in addition to the revenue from the malt and pharmaceutical business, net profit is estimated to be $61 million, $79 million, and $116 million, respectively, with growth rates of 28.05%, 29.24%, and 46.87%, respectively. The corresponding PE at the current price is 65.4 times, 50.8 times, and 34.6 times, respectively, and will not be rated for the time being. Risk warning: marketing channel reform is progressing slowly, management problems caused by channel expansion; malt business losses are expanding; the industry is facing an impact on imported alcohol; and upstream costs fluctuate greatly.