In the morning trading of Jan 5, Kweichow Moutai rose over 2,000 yuan again, setting a new intraday high of 2,034 yuan and ending at 2,029.98 yuan as of press time.
Other baijiu stocks were also mostly higher, with Jinshiyuan and Shuijingfang trading up by the daily limit, while Kuijiao and Yingjiagong followed. Luzhou Laojiao rose as much as 3.6% to its highest level since it went public in 1994.
On the evening of January 3, Moutai released its full-year forecast for 2020. According to preliminary calculation by Kweichow Moutai Liquor Co., LTD., the company will produce 50,000 tons of Moutai liquor and 25,000 tons of series liquor in 2020. It is expected to achieve a total revenue of about 97.7 billion yuan, with a year-on-year growth of about 10%. Among them, Kweichow Moutai Maotai Liquor Marketing Co., LTD., a wholly-owned subsidiary of the company, is expected to achieve a total revenue of about 9.4 billion yuan (tax sales of about 10.6 billion yuan). It is expected that the net profit attributable to shareholders of listed companies will reach about 45.5 billion yuan, up about 10% year-on-year.
Compared with previous years’ performance, Moutai’s growth rate has dropped significantly. In 2017, 2018 and 2019, moutai’s net profit growth of attributable to mother is 61.97%, 30.42% and 16.23%, respectively.
Whether the 10% growth rate can support the market value of 2.5 trillion yuan has become the most concerned topic in the market. But analysts remain bullish on Kweichow Moutai.
On January 4, Guotai Junan issued a research report saying that Kweichow Moutai’s performance was in line with expectations. Cicc also published research report on January 4, raising the target price of Kweichow Moutai to 2,739 yuan, and the growth is expected to accelerate in 2021, optimistic about the company’s long-term growth potential and performance certainty. On the same day, Guotai Junan also issued a research report, giving Kweichow Moutai a valuation of 52 times PE in 2021, raising the target price to 2,317 yuan, from 2,139 yuan previously.
On January 4, Luzhou Laojiao Co LTD issued a notice on the price system of national Cellar 1573 classic package. Among them, the purchase price of 52-degree National Cellar 1573 classic packing group is suggested to be 1050 yuan per bottle. At present, the group purchase price of this product in Beijing market is around 990 yuan/bottle. According to luzhou Laojiao’s notice, starting From January 4, 2021, the purchase price of 52-degree national Cellar 1573 classic packing group is suggested to be 1,050 yuan per bottle, the retail price remains 1,399 yuan per bottle, and the purchase price of 38-degree National Cellar 1573 classic packing group is suggested to be 750 yuan per bottle, and the retail price is suggested to be 999 yuan per bottle.