Fangzheng Securities: Shanxi Fenjiu has sufficient long-term development momentum, maintaining a "strongly recommended" rating.

Fangzheng Securities research report pointed out that the review of Shanxi Fenjiu shareholders' meeting - actively adjusting reserves, sufficient long-term development momentum. In 2026, it will enter a period of consolidation of the achievements of Fenjiu's revival and adjustment of elements. The company actively reduced speed, relieved pressure on channels, and achieved a total revenue of 14.92 billion yuan in the first quarter of 2026, a year-on-year decrease of 9.7%; achieving a net profit attributable to the parent of 5.38 billion yuan, a year-on-year decrease of 19.0%. Sales at the sales end are still growing, channel inventory is being reduced, and sales in other provinces are still growing. Due to industry restructuring caused by coal safety accidents in the first quarter of 2026, there has been some indirect impact on consumption in the province. The company maintains strategic focus, actively slows down the pace of collection, does not force sales, product pricing performance is better than peers, and the trend of depleting inventory continues. The company's brand and fragrance advantages are significant, and the layout of products in all price ranges also provides the company with more development opportunities. With the promotion of digital marketing and the advancement of nationalization 2.0 and youthfulness 1.0 strategies, the company's future growth momentum is sufficient. The "strongly recommended" rating is maintained.