One company, Zhenjiu Lidu, which is gearing up to push a high-end beer strategy focused on self-indulgence, surges! Another company, Yanjing Beer, which is venturing into the beverage industry for a "second entrepreneurship," plummets! In a bullish market atmosphere, whether a company’s strategy is "appealing" may be becoming a key factor in capital preference. On this point, Wu Xiangdong seems to have "succeeded," while Geng Chao has yet to gain market recognition.

Zhenjiu Lidu Soars on Its "Bull Market" Beer

Since August, Baijiu sales have gradually improved, and with Kweichow Moutai’s interim report showing resilience, market sentiment toward baijiu stocks has also warmed. As of the close on August 15, the Wind Baijiu Index rose 2.08% this week, closing at 58,860.75 points.

In terms of individual stock performance, Zhenjiu Lidu attracted significant market attention with its "bull market" beer, surging 24.9% for the week, with standout stock performance. Gujing Gongjiu, Shanxi Fenjiu, and Shede Liquor also posted gains of around 5%, showing strong momentum. Within the baijiu sector, only Tianyoude Liquor, *ST Yedao, and *ST Rock fell.

Kweichow Moutai’s interim report showed that the company achieved total operating revenue of 91.094 billion yuan in the first half of 2025, a year-on-year increase of 9.16%, and net profit attributable to shareholders of 45.403 billion yuan, up 8.89% year-on-year, demonstrating steady growth and the resilience of a market leader. Although Shuijingfang and Jiuguijiu previously forecasted mid-year profit declines, as the baijiu sector undergoes stress testing, the market is closely watching the recovery of second-half performance.

Kaiyuan Securities also noted that the market has already priced in the current challenges facing the baijiu sector, which now features low expectations, low valuations, and favorable capital structures, with leading liquor companies also offering high dividends. It is expected that fundamentals may approach a bottom after the Mid-Autumn Festival. From a long-term investment perspective, the baijiu sector already holds long-term value, and post-interim reports, investors should focus on leading baijiu companies with stable performance and strong branding for long-term positioning.

Is Yanjing Beer’s Strategy "Unappealing"?

Outside the baijiu sector, Yanjing Beer, which reported strong earnings, saw its stock price plunge this week, dropping 6.94%, underperforming both the beer index and major A-share indices.

In stark contrast, Zhenjiu Lidu, whose mid-term earnings declined sharply, recently announced its entry into the high-end beer market, leading to a 25% surge in its stock price this week, fueled by speculative fervor.

Market observers pointed out that the stark difference in stock performance may be due to Zhenjiu Lidu’s strategy aligning more closely with the new consumption trend. Today, new consumption emphasizes premium quality and emotional self-reward spending. Regardless of actual sales, Zhenjiu Lidu’s "bull market" beer, through its marketing strategy, undoubtedly fits the new consumption investment logic. On the other hand, although Yanjing Beer posted strong net profit growth, its high-end beer segment saw weaker growth, and its beverage strategy has yet to demonstrate strong competitiveness. After fulfilling its summer sales season performance, the investment narrative lacked appeal, leading to the stock decline.

Indeed, although Yanjing Beer’s first-half net profit exceeded expectations, growth in its mid-to-high-end products slowed to single digits. Data shows that in the first half of this year, Yanjing Beer’s mid-to-high-end product revenue was approximately 5.5 billion yuan, up 9.32% year-on-year. However, in the first half of 2023 and 2024, growth rates were 12.81% and 10.61%, respectively. The comparison clearly shows that the growth momentum of its mid-to-high-end products is losing steam.

Similarly, Best Soda, Yanjing Beer’s "strategic innovation pivot," currently generates less than 100 million yuan in revenue, accounting for less than 1% of total sales. Whether its beverage strategy can stand out amid competition from local brands like Dayao and Arctic Ocean remains highly uncertain.

Thus, with high-end growth slowing on one side and Best Soda unlikely to contribute significant profits in the short term, investor confidence has naturally weakened, leading to short-term stock volatility.