Kweichow Moutai (A) (SC SH)

Kweichow Moutai is engaged in the manufacture and sale of "Guizhou Moutai" series distilled spirits; manufacture and sale of beverages, food and packaging materials; development of anti-counterfeiting technologies; and research and development of relevant IT products. Through its subsidiaries, Co. is also engaged in the wholesale of agricultural vice-local products, building materials, decoration materials, metal materials, machineries, electronic products, telecommunication products, hardware, rubber products, general merchandises and furniture. Co.'s products include millesimes liquor, gift liquor, common liquor and other liquor series.
  • Ticker600519
  • ISINCNE0000018R8
  • SectorBeverages
  • CountryChina
Jo Yee Ng ... (+2)
  • Jo Yee Ng
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 9M21: Back to double-digit earnings grow...

Kweichow Moutai’s revenue grew 10.0% yoy and core earnings grew 13.2% yoy in 3Q21. Both net profit and core earnings increased 10.2% yoy in 9M21. Direct sales revenue surged 57.9% yoy and non-Moutai products revenue hiked 48.1% yoy in 3Q21. The company stated that it will not raise the official guided retail price in 2022. We think it is possible that the official guided retail price hike could be implemented prior to the ex-factory price hike in the future. Maintain BUY and lift the target price to Rmb2,450.00.

Jo Yee Ng ... (+2)
  • Jo Yee Ng
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 1H21: Earnings growth normalised in 2Q21...

Moutai reported an 11.1% yoy revenue increase and a 9.1% yoy earnings increase in 1H21. The net profit growth normalised in 2Q21 as it reached 12.5% yoy. Direct sales continued to grow and non-Moutai products’ sales accelerated in 2Q21. Cash flow status remained healthy. We think Moutai’s fundamentals are quite solid and current valuation is attractive. Maintain BUY with a lower target price of Rmb2,350.00.

Zhifeng Shen ... (+2)
  • Zhifeng Shen
  • Jo Yee Ng
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 1Q21: Revenue growth in line; Accelerati...

Moutai reported a 10.9% yoy increase in revenue and 6.2% yoy growth in core net profit in 1Q21. EBIT margin declined 3.6ppt yoy due to a 56.4% yoy hike in tax and surcharges. Its direct sales revenue surged 146.5% yoy in 1Q20, accounting for 17.5% of operating revenue. We expect wholesale prices to remain high in 2021. Maintain BUY and target price of Rmb2,440.00.

Jo Yee Ng ... (+2)
  • Jo Yee Ng
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 2020: Results in line; Solid growth ahea...

Moutai’s net profit increased 13.3% yoy in 2020, in line with our and consensus estimates. The shipment of Moutai brand products saw a 0.7% yoy drop but revenue saw a 11.9% yoy hike in 2020. The share of direct sales to total revenue rose to 14.0% in 2020 from 12.6% in 9M20. Demand for Moutai products is quite strong as contract liability increased 41.6% qoq as of end-Dec 20. We lift the target price to Rmb2,440.00. Upgrade to BUY.

Zhifeng Shen
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : High visibility in earnings growth prosp...

Kweichow Moutai announced a ~10% increase in net profit in 2020. It will continue to further the restructuring of its distribution channel by ramping up its direct sales volumes in 2021. We think the Administrative Guidance Conference would have little impact to earnings. The company has the highest earnings growth visibility over the next few years vs peers. This would support its relatively higher valuation. We lift our target price to Rmb2,211. Maintain BUY.

Jo Yee Ng ... (+2)
  • Jo Yee Ng
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 9M21: Back to double-digit earnings grow...

Kweichow Moutai’s revenue grew 10.0% yoy and core earnings grew 13.2% yoy in 3Q21. Both net profit and core earnings increased 10.2% yoy in 9M21. Direct sales revenue surged 57.9% yoy and non-Moutai products revenue hiked 48.1% yoy in 3Q21. The company stated that it will not raise the official guided retail price in 2022. We think it is possible that the official guided retail price hike could be implemented prior to the ex-factory price hike in the future. Maintain BUY and lift the target price to Rmb2,450.00.

Jo Yee Ng ... (+2)
  • Jo Yee Ng
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 1H21: Earnings growth normalised in 2Q21...

Moutai reported an 11.1% yoy revenue increase and a 9.1% yoy earnings increase in 1H21. The net profit growth normalised in 2Q21 as it reached 12.5% yoy. Direct sales continued to grow and non-Moutai products’ sales accelerated in 2Q21. Cash flow status remained healthy. We think Moutai’s fundamentals are quite solid and current valuation is attractive. Maintain BUY with a lower target price of Rmb2,350.00.

Zhifeng Shen ... (+2)
  • Zhifeng Shen
  • Jo Yee Ng
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 1Q21: Revenue growth in line; Accelerati...

Moutai reported a 10.9% yoy increase in revenue and 6.2% yoy growth in core net profit in 1Q21. EBIT margin declined 3.6ppt yoy due to a 56.4% yoy hike in tax and surcharges. Its direct sales revenue surged 146.5% yoy in 1Q20, accounting for 17.5% of operating revenue. We expect wholesale prices to remain high in 2021. Maintain BUY and target price of Rmb2,440.00.

Jo Yee Ng ... (+2)
  • Jo Yee Ng
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 2020: Results in line; Solid growth ahea...

Moutai’s net profit increased 13.3% yoy in 2020, in line with our and consensus estimates. The shipment of Moutai brand products saw a 0.7% yoy drop but revenue saw a 11.9% yoy hike in 2020. The share of direct sales to total revenue rose to 14.0% in 2020 from 12.6% in 9M20. Demand for Moutai products is quite strong as contract liability increased 41.6% qoq as of end-Dec 20. We lift the target price to Rmb2,440.00. Upgrade to BUY.

Zhifeng Shen
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : High visibility in earnings growth prosp...

Kweichow Moutai announced a ~10% increase in net profit in 2020. It will continue to further the restructuring of its distribution channel by ramping up its direct sales volumes in 2021. We think the Administrative Guidance Conference would have little impact to earnings. The company has the highest earnings growth visibility over the next few years vs peers. This would support its relatively higher valuation. We lift our target price to Rmb2,211. Maintain BUY.

Jo Yee Ng ... (+2)
  • Jo Yee Ng
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 9M21: Back to double-digit earnings grow...

Kweichow Moutai’s revenue grew 10.0% yoy and core earnings grew 13.2% yoy in 3Q21. Both net profit and core earnings increased 10.2% yoy in 9M21. Direct sales revenue surged 57.9% yoy and non-Moutai products revenue hiked 48.1% yoy in 3Q21. The company stated that it will not raise the official guided retail price in 2022. We think it is possible that the official guided retail price hike could be implemented prior to the ex-factory price hike in the future. Maintain BUY and lift the target price to Rmb2,450.00.

Jo Yee Ng ... (+2)
  • Jo Yee Ng
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 1H21: Earnings growth normalised in 2Q21...

Moutai reported an 11.1% yoy revenue increase and a 9.1% yoy earnings increase in 1H21. The net profit growth normalised in 2Q21 as it reached 12.5% yoy. Direct sales continued to grow and non-Moutai products’ sales accelerated in 2Q21. Cash flow status remained healthy. We think Moutai’s fundamentals are quite solid and current valuation is attractive. Maintain BUY with a lower target price of Rmb2,350.00.

Zhifeng Shen ... (+2)
  • Zhifeng Shen
  • Jo Yee Ng
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 1Q21: Revenue growth in line; Accelerati...

Moutai reported a 10.9% yoy increase in revenue and 6.2% yoy growth in core net profit in 1Q21. EBIT margin declined 3.6ppt yoy due to a 56.4% yoy hike in tax and surcharges. Its direct sales revenue surged 146.5% yoy in 1Q20, accounting for 17.5% of operating revenue. We expect wholesale prices to remain high in 2021. Maintain BUY and target price of Rmb2,440.00.

Jo Yee Ng ... (+2)
  • Jo Yee Ng
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 2020: Results in line; Solid growth ahea...

Moutai’s net profit increased 13.3% yoy in 2020, in line with our and consensus estimates. The shipment of Moutai brand products saw a 0.7% yoy drop but revenue saw a 11.9% yoy hike in 2020. The share of direct sales to total revenue rose to 14.0% in 2020 from 12.6% in 9M20. Demand for Moutai products is quite strong as contract liability increased 41.6% qoq as of end-Dec 20. We lift the target price to Rmb2,440.00. Upgrade to BUY.

Zhifeng Shen
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : High visibility in earnings growth prosp...

Kweichow Moutai announced a ~10% increase in net profit in 2020. It will continue to further the restructuring of its distribution channel by ramping up its direct sales volumes in 2021. We think the Administrative Guidance Conference would have little impact to earnings. The company has the highest earnings growth visibility over the next few years vs peers. This would support its relatively higher valuation. We lift our target price to Rmb2,211. Maintain BUY.

Jo Yee Ng ... (+2)
  • Jo Yee Ng
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 9M21: Back to double-digit earnings grow...

Kweichow Moutai’s revenue grew 10.0% yoy and core earnings grew 13.2% yoy in 3Q21. Both net profit and core earnings increased 10.2% yoy in 9M21. Direct sales revenue surged 57.9% yoy and non-Moutai products revenue hiked 48.1% yoy in 3Q21. The company stated that it will not raise the official guided retail price in 2022. We think it is possible that the official guided retail price hike could be implemented prior to the ex-factory price hike in the future. Maintain BUY and lift the target price to Rmb2,450.00.

Jo Yee Ng ... (+2)
  • Jo Yee Ng
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 1H21: Earnings growth normalised in 2Q21...

Moutai reported an 11.1% yoy revenue increase and a 9.1% yoy earnings increase in 1H21. The net profit growth normalised in 2Q21 as it reached 12.5% yoy. Direct sales continued to grow and non-Moutai products’ sales accelerated in 2Q21. Cash flow status remained healthy. We think Moutai’s fundamentals are quite solid and current valuation is attractive. Maintain BUY with a lower target price of Rmb2,350.00.

Zhifeng Shen ... (+2)
  • Zhifeng Shen
  • Jo Yee Ng
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 1Q21: Revenue growth in line; Accelerati...

Moutai reported a 10.9% yoy increase in revenue and 6.2% yoy growth in core net profit in 1Q21. EBIT margin declined 3.6ppt yoy due to a 56.4% yoy hike in tax and surcharges. Its direct sales revenue surged 146.5% yoy in 1Q20, accounting for 17.5% of operating revenue. We expect wholesale prices to remain high in 2021. Maintain BUY and target price of Rmb2,440.00.

Jo Yee Ng ... (+2)
  • Jo Yee Ng
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 2020: Results in line; Solid growth ahea...

Moutai’s net profit increased 13.3% yoy in 2020, in line with our and consensus estimates. The shipment of Moutai brand products saw a 0.7% yoy drop but revenue saw a 11.9% yoy hike in 2020. The share of direct sales to total revenue rose to 14.0% in 2020 from 12.6% in 9M20. Demand for Moutai products is quite strong as contract liability increased 41.6% qoq as of end-Dec 20. We lift the target price to Rmb2,440.00. Upgrade to BUY.

Zhifeng Shen
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : High visibility in earnings growth prosp...

Kweichow Moutai announced a ~10% increase in net profit in 2020. It will continue to further the restructuring of its distribution channel by ramping up its direct sales volumes in 2021. We think the Administrative Guidance Conference would have little impact to earnings. The company has the highest earnings growth visibility over the next few years vs peers. This would support its relatively higher valuation. We lift our target price to Rmb2,211. Maintain BUY.

Jo Yee Ng ... (+2)
  • Jo Yee Ng
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 9M21: Back to double-digit earnings grow...

Kweichow Moutai’s revenue grew 10.0% yoy and core earnings grew 13.2% yoy in 3Q21. Both net profit and core earnings increased 10.2% yoy in 9M21. Direct sales revenue surged 57.9% yoy and non-Moutai products revenue hiked 48.1% yoy in 3Q21. The company stated that it will not raise the official guided retail price in 2022. We think it is possible that the official guided retail price hike could be implemented prior to the ex-factory price hike in the future. Maintain BUY and lift the target price to Rmb2,450.00.

Jo Yee Ng ... (+2)
  • Jo Yee Ng
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 1H21: Earnings growth normalised in 2Q21...

Moutai reported an 11.1% yoy revenue increase and a 9.1% yoy earnings increase in 1H21. The net profit growth normalised in 2Q21 as it reached 12.5% yoy. Direct sales continued to grow and non-Moutai products’ sales accelerated in 2Q21. Cash flow status remained healthy. We think Moutai’s fundamentals are quite solid and current valuation is attractive. Maintain BUY with a lower target price of Rmb2,350.00.

Zhifeng Shen ... (+2)
  • Zhifeng Shen
  • Jo Yee Ng
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 1Q21: Revenue growth in line; Accelerati...

Moutai reported a 10.9% yoy increase in revenue and 6.2% yoy growth in core net profit in 1Q21. EBIT margin declined 3.6ppt yoy due to a 56.4% yoy hike in tax and surcharges. Its direct sales revenue surged 146.5% yoy in 1Q20, accounting for 17.5% of operating revenue. We expect wholesale prices to remain high in 2021. Maintain BUY and target price of Rmb2,440.00.

Jo Yee Ng ... (+2)
  • Jo Yee Ng
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : 2020: Results in line; Solid growth ahea...

Moutai’s net profit increased 13.3% yoy in 2020, in line with our and consensus estimates. The shipment of Moutai brand products saw a 0.7% yoy drop but revenue saw a 11.9% yoy hike in 2020. The share of direct sales to total revenue rose to 14.0% in 2020 from 12.6% in 9M20. Demand for Moutai products is quite strong as contract liability increased 41.6% qoq as of end-Dec 20. We lift the target price to Rmb2,440.00. Upgrade to BUY.

Zhifeng Shen
  • Zhifeng Shen
600519 Kweichow Moutai... (Food & Beverage)

Kweichow Moutai (600519 CH) : High visibility in earnings growth prosp...

Kweichow Moutai announced a ~10% increase in net profit in 2020. It will continue to further the restructuring of its distribution channel by ramping up its direct sales volumes in 2021. We think the Administrative Guidance Conference would have little impact to earnings. The company has the highest earnings growth visibility over the next few years vs peers. This would support its relatively higher valuation. We lift our target price to Rmb2,211. Maintain BUY.

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