Sichuan Swellfun Co Ltd Class A
600779: XSHG (CHN)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| CNY 93.00 | Ztcrjyf | Hqcbvmbf |
Initiating Coverage on Sichuan Swellfun; Accelerating Premiumization to Boost Profit Outlook
Business Strategy and Outlook
Narrow-moat-rated Sichuan Swellfun, or Swellfun, is one of the key subpremium baijiu brands in China with aged cellars dating as far back as the late Yuan dynasty. Diageo’s takeover in 2006 has further strengthened Swellfun’s strategic focus in the midrange to subpremium markets. This positions the company well amid the sector’s premiumization trend, allowing it to generate economic profits well into the future, in our view.