Kweichow Moutai Earnings: Decent Growth Reaffirms Moutai’s Leadership in China Baijiu Sector

We maintain our fair value estimate of CNY 1,680 per share for wide-moat Kweichow Moutai, following the release of the company’s decent first-quarter results. The results revealed that demand for Moutai remains resilient, despite the pressure on the baijiu sector as a whole that led to a 19% year-over-year cut in production volume in the quarter. We keep our 2023 net profit forecast of CNY 73.0 billion. We think the shares are fairly valued as of market close on April 25.