Zhejiang Securities: Initiates a "Buy" rating for Yanjing Beer, with a focus on its second entrepreneurship and high-end development driving growth.

Zhejiang Securities' research report points out that Yanjing Beer is embarking on a secondary startup, with premiumization leading its growth. Under the combined effects of "reforming and restructuring the operating system + U8 driving product structure upgrades + optimizing costs and organizational efficiency + reducing losses in subsidiaries," the company's profit center continues to rise. It is expected that there remains significant room for net profit margin improvement, highlighting its strong alpha attributes. By 2028, Yanjing U8 sales are expected to reach approximately 1.3 million tons, contributing about 7.4 billion yuan in revenue. At the same time, the company has launched Yanjing A10, enhancing the momentum of its high-end brand. In terms of categories, it is constructing a "one core, two wings" business layout, forming a synergistic development of "beer + beverages + health foods." Considering Yanjing Beer's brand moat, the benefits of market-oriented reforms, and the valuation uplift brought by premiumization, a 23 times PE ratio is given for 2026, corresponding to a target price of 16.80 yuan. This represents about a 30% upside potential compared to the current stock price, initiating coverage with a "buy" rating.