Dongwu Securities: First gives Huangjiu Mountain a "buy" rating, and yellow wine welcomes the opportunity of category value return.

The Dongwu Securities research report pointed out that yellow wine is facing a value return opportunity in its category, with a younger market accelerating its breakthrough. Kuiji Mountain has a deep historical background, with revenue steadily increasing. The company is opening up price space with a focus on high-end products, reshaping the value of the category through a combination of culture and trends, restructuring the yellow wine value chain, and ensuring landing efficiency through deep cultivation of channels and organizational vitality. In the short term, relying on strong regional cultivation, dual oligopoly price increases, and focusing on key products, the company will maintain growth momentum. As the only privately-owned enterprise among the three listed yellow wine companies, the company has certain institutional advantages and a more flexible mechanism. The company completed a buyback of 9 million shares in early 2024, intended for equity incentives or employee shareholding, and we believe that the company's subsequent incentives are expected to be launched. First coverage, "buy" rating given.