Kweichow Moutai's stock is listed on the Shanghai Stock Exchange (SSE) under the ticker 600519, with the Chinese government holding a significant stake in the company.
Kweichow Moutai Shares Today (600519.SS)
Kweichow Moutai Co., Ltd., headquartered in Guizhou Province, China, is a liquor company founded in 1999. The company is the largest and most well-known producer of baijiu, a traditional Chinese spirit. Moutai’s flagship product is a high-end, premium spirit.
Moutai enjoys significant brand recognition, often compared to other luxury firms like Louis Vuitton and Rolex in their respective fields. Its limited supply and high demand have made Kweichow Moutai one of the most profitable liquor companies globally. According to Companies Market Cap, it is also the biggest liquor company globally by market cap.
Kweichow Moutai operates predominantly in mainland China but has also expanded its reach to overseas markets, targeting affluent consumers and the Chinese diaspora. The company generates most of its revenue from premium baijiu sales, leveraging scarcity and brand heritage to maintain its exclusivity.
YOUR CAPITAL IS AT RISK
Alcohol Industry Comparison
Kweichow Moutai EPS and Revenue Breakdown 2020-2023
| Year | EPS | Annual Revenue |
|---|---|---|
| 2020 | $5.42 | $14.30 billion |
| 2021 | $6.46 | $16.93 billion |
| 2022 | $7.40 | $18.88 billion |
| 2023 | $7.82 (TTM) | $21.28 billion |
Moutai Dividend Yield
Kweichow Moutai shares have struggled for most of 2024 as investors are concerned with the economic situation in China. However, the stock recently surged following the announcement of economic stimulus before pulling back to trade at around CNY 1,565 as of October 28, 2024.
Dividend Yield: 1.18%
YOUR CAPITAL IS AT RISK
Kweichow Moutai Share Price Forecast
Despite the recent struggle for upside momentum in its stock, the outlook for Kweichow Moutai remains positive, driven by its unparalleled brand value and resilient demand. According to data compiled by TradingView, 35 out of 37 analysts covering the stock have assigned it a Buy rating, while the remaining two have given it a Hold.
A View From The Bulls: Kweichow Moutai has strong brand equity and cultural significance. Its unique production process and resilient demand, even during economic downturns, highlight its appeal to investors, and as China's middle class expands, Moutai's premium positioning and increasing accessibility through e-commerce could drive growth. The company's strong financial position and dividend payouts further enhance its investment attractiveness.
Bullish investors should note that the company recently posted robust sales and profit in the third quarter despite weakening consumer sentiment and declining wholesale prices in China.
A View From The Bears: In late July, UBS Group downgraded shares of Kweichow Moutai to Neutral from Buy, explaining in a note to investors that capacity expansions and destocking strategies create a supply overhang when consumer demand is weakening in the world’s biggest spirits market. The Swiss bank added that the company is battling macroeconomic headwinds stemming from a sustained property market crisis and the impact of tariff increases from its leading trade partners.
Elsewhere, given the current economic situation in China, investors should keep an eye on discretionary spending within China’s economy.
Average Analyst Consensus 12-Month Price Target: CNY 1,954.19
Our View: Kweichow Moutai presents a unique investment opportunity for those seeking exposure to luxury consumption in China’s consumer market. The company’s ability to command premium prices, coupled with a strong brand heritage, provides a solid foundation for long-term growth. However, investors should be mindful of risks tied to the current economic environment in China.
Who Should Buy Kweichow Moutai Shares?
Kweichow Moutai may appeal to the following investor profiles:
Investors bullish on the luxury segment of China’s consumer market might find Moutai’s unique position highly attractive, especially as there is a growing middle class in China.
This may also help long-term investors. In addition, Moutai’s consistent revenue growth and high profitability make it appealing to investors with a long-term horizon..
While the dividend yield may not be high, Moutai’s steady payouts offer some income stability for those looking for income-focused stocks that offer some growth potential. Furthermore, investors seeking exposure to China’s domestic consumption trends and affluent consumers will, of course, find Kweichow Moutai to be a strategic fit.
On the other hand, investors looking for high-growth opportunities outside of China may find the stock too concentrated in one market. Additionally, those concerned about luxury consumption policies in China might prefer more diversified investments.
