Broker: China Galaxy International Securities (Hong Kong) Co., Limited
Date of Report: April 17, 2026
Excerpt from China Galaxy International report.
Report Summary
- Stock Focus: Kweichow Moutai (600519.SS / 600519 CH)
- Action: Reiterate Add
- Target Price: Rmb1,570 (revised down from Rmb1,595)
- Current Price: Rmb1,463
- Upside: 7.3%
- Key Idea: Kweichow Moutai’s FY25 results were weaker than expected due to the impact of alcohol prohibition policies, but the company has initiated market-oriented reforms and price hikes to support a recovery in FY26F.
- Highlights:
- FY25 revenue fell 1.2% and net profit dropped 4.5% year-over-year, both below forecast.
- FY26F revenue expected to rise 2.7% and net profit to grow 2.9%, mainly driven by increased average selling price (ASP) and improved product mix.
- Direct sales channels (especially group purchasing) are supporting sales, while distributor channels remain under pressure.
- Dividend yield remains attractive at c.4% for FY25-27F.
- Downside risks: tougher competition and weaker premium baijiu demand if the economy slows further.
Call to Action: Maintain Add rating on Kweichow Moutai with a revised target price of Rmb1,570. Investors should watch for continued recovery in sales and impacts from ongoing reforms and price hikes.
above is an excerpt from a report by China Galaxy International Securities (Hong Kong) Co., Limited. Clients of China Galaxy International Securities (Hong Kong) Co., Limited can be the first to access the full report from the China Galaxy International website : https://www.chinastock.com.hk
