Kweichow Moutai Co Ltd Class A
600519: XSHG (CHN)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
CNY 2,973.00 | Vnj | Cnwyb |
Moutai's First-Half Results In Line; Accelerating DTC Channel Sales a Highlight
We maintain our CNY 1,580 fair value estimate for wide-moat Kweichow Moutai following the company’s in-line first-half results, which revealed that demand for Moutai remains resilient despite some disruptions from COVID-19 lockdowns. We maintain our net profit compound annual growth rate assumption of 14.3% over the next five years. The shares appear slightly overvalued presently; we think Yanghe offers slightly better risk/reward amid accelerating growth and a relatively lower valuation currently.