Luzhou Laojiao Co Ltd Class A 000568

Morningstar Rating
CN¥73.63 −1.18 (1.58%)
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Company Report

Luzhou Laojiao's Premium-Quality Product and Brand Strength Support a Promising Outlook

Luzhou Laojiao, founded in 1955 from a group of 36 ancient brewing workshops dating back to the Ming and Qing dynasties, is one of the top three premium baijiu distillers in China. As the original rich-flavored baijiu distiller, the company enjoys a rich legacy that few other baijiu producers have. We believe Laojiao’s hard-to-replicate aged cellars, classic brewing technique, and centuries of history of producing quality products have established a strong competitive advantage in brand strength and pricing power. Its extensive distribution network and deepening cooperation with distributors have also fortressed its competitiveness, allowing it to generate economic profits well into the future.

Price vs Fair Value

000568 is trading at a LOCK|ckjt$< premium.
Price
CN¥73.63
Fair Value
LOCK|#!
Uncertainty
LOCK|&Hq!
1-Star Price
LOCK|R.F
5-Star Price
LOCK|.S
Economic Moat
LOCK|L%#
Capital Allocation
LOCK|NnhX!&

Bulls Say, Bears Say

Bulls

As one of the three leading premium brands in China, Laojiao is well positioned to capture the baijiu sector’s premiumization.

Bears

The baijiu sector is more cyclical than other consumer staples industries, particularly in the premium segment.

News

Trading Information

Previous Close Price
CN¥74.81
Day Range
CN¥73.5074.70
52-Week Range
CN¥73.37145.88
Bid/Ask
CN¥73.63 / CN¥73.64
Shares Outstanding
1.47B
Market Cap
CN¥108.38B
Volume/Avg
8M / 13M

Key Statistics

Price/Earnings (Normalized)
14.65
Price/Sales
5.49
Dividend Yield (Trailing)
7.84%
Dividend Yield (Forward)
7.84%
Dividend Payment Schedule
Jan, Aug
Total Yield
7.84%

Company Profile

Luzhou Laojiao is one of China’s leading premium baijiu producers. Its primary product, National Cellar 1573, is widely known as one of the best rich-flavored baijiu in the market. It, Feitian Moutai, and flagship Wuliangye are the top three premium products that dominate over 95% of the premium baijiu market in China. Laojiao's high-quality products, extensive history, and brand strength have led to strong pricing power, allowing the company to enjoy high retail prices and profit margins. The State-Owned Assets Supervision and Administration Commission of Luzhou controls 46% of Luzhou Laojiao.
Sector
Consumer Defensive
Industry
Beverages - Wineries & Distilleries
Stock Style Box
Large Value
Total Number of Employees
3,912

Competitors

Valuation

Metric
000568
002304
600809
Price/Earnings (Normalized)
14.65162.2613.68
Price/Book Value
2.371.223.66
Price/Sales
5.493.833.89
Price/Cash Flow
13.1844.3413.18
Price/Earnings
000568
002304
600809

Financial Strength

Metric
000568
002304
600809
Quick Ratio
1.792.300.47
Current Ratio
2.794.882.11
Interest Coverage
74.39210.782,850.37
Quick Ratio
000568
002304
600809

Profitability

Metric
000568
002304
600809
Return on Assets (Normalized)
11.14%0.60%17.15%
Return on Equity (Normalized)
15.63%0.74%26.66%
Return on Invested Capital (Normalized)
12.91%0.42%26.13%
Return on Assets
000568
002304
600809

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