The transformation of the new major shareholders will give the company a new look. The company was in a state of long-term loss before the new major shareholder Houfeng Investment entered the company. after entering the company in April this year, the new shareholders resumed the production and sales of the company's spirits quickly, and renovated the liquor packaging workshop and sewage treatment plant. Liquor revenue in the first half of this year increased by 81.29% compared with the same period last year.

Spirit business starts again, new shareholders launch new products and formulate new sales strategies and plans to reshape the Huangtai brand. The company hired Shengchu sales planner's Tongda Weiss strategy, a new product line and sales strategy, which is expected to be launched on the 25th anniversary of the company in September. The company plans to achieve 60% of the market share in Wuwei in the future and restore its product status in Lanzhou. The company plans to reach 150-200 million in liquor sales next year and 250-300 million in the year after next.

The growth of Gansu market has been accelerated and there is a lot of room for development. In recent years, the government has accelerated the development of western cities, the economic growth of Gansu Province has accelerated, and the growth rate of liquor production and sales has also increased, and the growth rate is expected to maintain a high level in the future. On the other hand, the mid-range liquor market in Gansu Province lacks absolutely strong brands, which provides a better market space for Huangtai to re-develop liquor business.

Huangtai liquor brand has high popularity in Gansu in history, and a certain number of pits and old original wines provide the basis for the company's expansion. Huangtai Liquor has achieved an income of 200 million in 1992, and its products are sold in 18 provinces across the country. The company has 1500 pits, of which 700 were founded in 1985. at present, the company still has 2000 tons of raw wine, most of which have been preserved for more than 10 years.

The recovery of the spirits business will promote the rapid expansion of the company's revenue. As a regional brand with certain influence in history, driven by the new sales team and sales strategy, we expect its sales revenue and market size to achieve the revenue target of 150 million yuan next year and 270 million yuan the year after next. However, as the early investment in order to expand market costs will also be larger, the growth of profits will be slower than the growth of income. It is estimated that the EPS in 2010-2012 will be 0.09,0.04 and 0.26 yuan respectively, and the PE in 2012 will be 40 times relative to the current stock price, but as the company is currently in a period of transition, if successful, the company's long-term growth space and growth rate in the future will be higher than that of other liquor enterprises that already have a stable market, and it is reasonable to give them a relatively high valuation. In view of the possibility of greater growth in its future performance, we give it an overweight rating and will continue to track its subsequent growth and changes.