On April 27, Zhenjiu Li Du celebrated its first year on the market.
A year ago, Zhenjiu Li Du broke the industry's seven-year hiatus and entered the Hong Kong stock market as the first stock of Hong Kong stock liquor and the second share of Chinese sauce-flavored liquor.
Zhenjiu Lidu Hong Kong Stock Exchange listing site
Despite facing many challenges in the early days, such as macroeconomic pressure, weak sentiment in the Hong Kong stock food and beverage sector, and no reference point for liquor, the scarcity and investment value of Zhenjiu Li Du gradually became known to more people after being discovered by many well-known domestic and foreign brokerage institutions, and began a good story of time and value.
According to incomplete statistics, since Zhenjiu Lidu went public, more than 30 well-known domestic and foreign brokerage institutions, including Goldman Sachs, CITIC Securities, Cathay Pacific Junan, Haitong International, Huachuang Securities, and China Merchants Securities, have published more than 100 research reports on the company's development trends, sales situation, product structure, channel management, etc. at key points such as the company's listing, sales situation, product structure, channel management, etc., giving Zhenjiu Li Du positive ratings such as “increasing holdings”, “buying” and “highly recommended.” In particular, Cathay Pacific Junan, Haitong International, Huachuang Securities, China Merchants Securities, etc. have been optimistic many times, strengthening the market's confidence in the high growth of Zhenjiu Li Du.
At the beginning of the listing, the brokerage research report thoroughly analyzed the growth logic of Zhenjiu Lidu, emphasizing its multi-brand and multi-category strategy, efficient management execution, and dominant position in the trend of soy wine quality and branding. According to the CITIC Securities Research Report, Zhenjiu Lidu's clear brand story, intensive sales network, and increased production capacity reserves have given it a head start in the recovering liquor market, especially in the soy wine segment, which has huge potential for growth.
After the release of the 2023 interim results and annual results, the brokerage agency reported that Zhenjiu Lidu's performance exceeded market expectations, and that the product structure was significantly optimized, gross profit improved significantly, and profit growth was impressive, showing optimism about long-term development. Haitong Securities predicts that Zhenjiu Lidu's revenue in 2024-2026 will be 8.47 billion yuan, 10.08 billion yuan, and 11.80 billion yuan respectively, and adjusted net profit will be 1.84 billion yuan, 2.26 billion yuan, and 2.78 billion yuan respectively.
In addition, the brokerage agency research report also focused on the sales situation of Zhenjiu Lidu during the Mid-Autumn Festival, National Day, Spring Festival, etc., and emphasized its excellent performance in the core market, as well as the positive impact of product structure upgrades and production capacity increases on profitability. According to CICC's research report, Zhenjiu's successful sales season repayment is expected to reach more than 30% of the annual target, and the company's product structure upgrade and base wine production capacity increase will drive a steady increase in gross margin. The adjusted net profit is expected to increase 25% in 2024.
Screenshot of Zhenjiu Li Du's stock price on May 7
The market performance of Zhenjiu Li Du in its first year of listing did not live up to the expectations of the capital market. In 2023, Zhenjiu Li Du's turnover was HK$13.28 billion, which is particularly remarkable in the context of tightening liquidity in Hong Kong stocks. Meanwhile, in the year since its listing, Zhenjiu Li Du has rapidly emerged as the third largest private wine company and the ninth largest listed liquor company in China, verifying the capital market's recognition of Zhenjiu Li Du's “value creation”.
It can be said that the growth story of Zhenjiu Li Du on the first anniversary of its launch is not only a successful case in the liquor industry, but also a vivid interpretation of how the value of time and brand potential complement each other.