Research Report Insights | Guohai Securities: Reiterates 'Buy' Rating for Luzhou Laojiao, Accelerates Product Innovation and Digital Construction

According to a research report by Guohai Securities, Luzhou Laojiao's net profit attributable to shareholders in the first three quarters of 2025 was RMB 10.762 billion, representing a year-on-year decrease of 7.17%; while its Q3 2025 net profit attributable to shareholders was RMB 3.099 billion, down 13.07% year-on-year. The adjustment in performance continued into the third quarter, with the company accelerating product innovation and digital construction. In terms of products, due to controlled inventory, we estimate that the year-on-year decline of the premium Guojiao 1573 series in Q3 exceeded that of the lower-alcohol version, while the overall price level remained relatively stable. The company continues to drive product innovation. The new product, Luzhou Laojiao Erqu, has already been piloted for promotion, and the 28-degree Guojiao 1573 will be launched in the market at an appropriate time. Meanwhile, the company is gradually shifting resources towards mid-to-high-end mainstream products such as Tequ 60 Edition, Tequ, and Touqu to solidify its position in the mass market. On the channel front, the company is further deepening the construction of its intelligent marketing system, enhancing the precision of marketing expenditure allocation and improving cost efficiency. It is believed that the company's core competitiveness in channels and branding remains prominent, and under the impetus of marketing reform and digital transformation, it demonstrates significant earnings elasticity. Considering macroeconomic demand pressures, the company’s profit forecast has been revised downward, but the “buy” rating is maintained.