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.