Orient Securities Research Report pointed out that Yingjiagongjiu's revenue continued to increase steadily, and profits exceeded expectations. 26H1 achieved revenue/net profit attributable to mother/ net profit without return to mother of 34.2/11.6/1.12 billion yuan, respectively; according to estimates, 26Q2 achieved revenue/net profit to mother/ net profit of 11.9/3.3/30 billion yuan, respectively, +6.6%/+8.4%/+9.3% year-on-year, respectively. Q2 revenue continued to grow steadily, and volume resumed on June 9th. Improved product structure drove a year-on-year increase in Q2 profitability, and performance slightly exceeded expectations. It is believed that Huijiu is currently in an obvious stock market. The main growth factor is that the Dongzang series is still in the first half of the product life cycle and has stronger channel momentum for competitive products. The Huijiu pattern lags behind Suzhou Liquor. Referring to the Jiangsu market, there is still plenty of room for increasing market share in the province after the internal governance of Huijiu is improved. Considering that the industry is in a period of adjustment, on a quarterly basis, there is a certain probability that the company's growth will continue, and I am optimistic that the performance will continue to improve in the second half of the year. The company's Q2 revenue continued to grow in Q1, while the upward product structure led to good performance in gross margin & net margin. Referring to comparable companies in the industry, the company was given a price-earnings ratio of 20 times in 26 years. The corresponding target price was 51.20 yuan, maintaining a “buy” rating.

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