Liquor industry: Development trend prospects for the mid-range wine to the world

In the previous report "The liquor industry depression Period", we divided the liquor industry development Four stages. It is found that the Zisheng of the liquor industry is in keeping with the overheated economy and sustained inflation, while the price-drop is also consistent with the macroeconomic slowdown. But no matter which cycle the economy is in, we believe that there will always be some liquor companies to use innovation to stand out.　　In this report, we would like to give you a review of the different stages of the liquor companies to adopt the competition strategy, the performance of the future competition focus, and recommend a number of opportunities for the stock.　　Chinese liquor industry has experienced the high-end product competition--the mid-range market snatch--the process of the high-end liquor snatch again, we think, 2008 years later will enter the competition pattern of high-grade liquor. In this battle, we believe that in product development and design, marketing, terminal channel Maintenance has a strong competitive advantage of the enterprise will win, we are the most important wuliangye, followed by the recommendation of Shanxi Fen. In the short term, the concept of "dong Zang liquor" will still be a subject investment, which will benefit alcoholics, gong and so on. In the long run, Guizhou Maotai Company will still stand in the ranks of high-end liquor, you can suggest holding and waiting for the next wave of price Zisheng. In the medium and long term, the Shanxi fen, Shui Jing Fang and Jiannanchun, which try to develop the evening liquor, will be able to get a breakthrough in the larger market. We believe that in the next few years "pricing power" can no longer be the main reason to give a high valuation premium, the market should be given to occupy more market share, or to seize the mid-range wine market share of liquor listed companies more valuation premium. Carefully recommended Wuliangye and Shanxi Fen, whether it is the future profit or valuation premium, there will be room for improvement in the future.