Jinwu Finance | CITIC SEC stated that since Q2 of 2024, due to weak demand in the Industry, the revenue growth of listed liquor companies has started to slow significantly. Meanwhile, affected by intensified competition and a decrease in scale effects, the profitability of many liquor companies is under some pressure.
During this year's Spring Festival peak season, the overall sales decline in the Baijiu Industry has narrowed to some extent year-on-year. If demand gradually stabilizes in the future, considering the base effect of 2024, the firm expects the performance of Baijiu companies to show some improvement starting in Q3 of 2025. Currently, leading Baijiu companies are continuously enhancing shareholder returns through increased dividend rates, buybacks, and Shareholding, thereby thickening the investment safety margin. Additionally, considering that consumption stimulus policies will be introduced and expectations for the macro economy to continue recovering, the firm maintains its allocation recommendation for leading Baijiu enterprises.
