Huafu Securities: First coverage of Welcome Contribution Liquor with a "buy" rating, profit potential expected to gradually improve.

Huafu Securities research report pointed out that the current liquor industry presents three core characteristics. Firstly, from the perspective of industrial structure development trend, the feature of brand concentration of "the strong get stronger" continues. Secondly, looking at the demand scenarios of the past two years, it shows the more stable characteristic of "dual-end consumption". Thirdly, from the recent response of Yinfenggong liquor, leading companies are actively making adjustments in supply and demand, as well as internal management. Yinfenggong liquor established its market foundation early on, gradually consolidating its advantages within the province. Its series focuses on the mainstream price range of mass business and banquet, extending from cave 6 and cave 9 to cave 16 and cave 20, forming a product matrix of "high-end image models + mass basic models". Looking ahead, with the gradual recovery of industry demand, the company's market share in the province will continue to increase, the core regions outside the province will steadily expand, combined with the continuous optimization of product structure, profitability is expected to gradually recover. It has a strong safety margin and long-term growth space. The current stock price corresponds to PE ratios of 13/11/10 for the years 2026-2028, and the initial coverage gives a "buy" rating.