Incident: On November 26, the “Cohesion, Excitement, and Pursue the Future” Yanghe Co., Ltd. global dealer conference was held in Nanjing.

The three phases were superimposed, breaking the game and growing. Judging from its own development, Yanghe is in the “three-phase superposition stage”. Yanghe will implement the “12355 Development Outline”: “Adhere to one big center”, that is, “insist on being consumer-centered to increase market share”; “Focus on two basic points”, that is, “focus on the basic quality points of Mianrou Gene, focus on the basic points of development of innovation and creativity”; “Relying on the three main brands”, “Yanghe, Shuanggou, and Guijiu”; “break through the top five 10 billion levels”, that is, “Blue of the Sea, Sky Blue, and Dream “, manual classes, and double channels”; “optimizing the five new names” means optimizing “distribution power and channel power , brand power, promotion power, and organizational strength”.

“Build and share together” and build a “community of manufacturers”. Faced with multiple pressures such as a weak cycle in the industry, manufacturer cooperation has entered a new historical stage. From the Vendor Co-Creation 1.0 Blood Transfusion Stage to the Vendor Co-Construction 2.0 Blood Vigor Stage, to the current Vendor Symbiosis 4.0 hematopoietic stage, Yanghe strives to promote the upgrading of manufacturer relationships and focus on building a new “manufacturer community” ecosystem to provide dealers with more opportunities and create greater value. Facing the future, in order to build a “shared” enterprise ecosystem and build a “manufacturer community”, Yanghe will adopt the three major measures of “holding regular manufacturer meetings, forming a business deliberation committee, and building a dealer feedback platform” to speed up the drafting of the “Yanghe Market Supervision Law”, “Yanghe Dealer Protection Law” and “Two Major Laws” as Yanghe's management outline to protect the legitimate rights and interests of dealers and promote the sustainable development of Yanghe River.

Investment advice: Since demand is still weak, it is expected that the company will still be under heavy pressure, but the company is still adjusting the business pace in line with the actual market, strengthening channels such as banquets, focusing on opening bottles and unpacking and inventory indicators, and insisting on deepening the base business. We believe that due to terminal demand factors such as the economic environment, consumption, and inventory volume, Yanghe shares took the initiative to slow down and adjust. Currently, it is still in the adjustment period, and revenue or profits are under short-term pressure. The company's revenue for 24-26 years is estimated to be 296/290/304 yuan, up -11%/2%/5%; net profit to mother is 8.2/8.3/8.7 billion yuan, respectively, up -18%/1%/6%, corresponding PE is 15X/15X/14X, respectively.

Risk warning: Industry competition intensifies; consumer demand falls short of expectations; management results fall short of expectations; macroeconomic recovery falls short of expectations.