Broker: China Galaxy International Securities (Hong Kong) Co., Limited
Date of Report: April 17, 2026
Excerpt from China Galaxy International Securities report.
Report Summary
- Stock Focus: Kweichow Moutai (600519.SS / 600519 CH)
- Action: Reiterate Add (equivalent to Buy)
- Target Price: Rmb1,570 (lowered from Rmb1,595)
- Current Price: Rmb1,463
- Upside: 7.3%
- Key Idea: Despite a weak FY25 due to alcohol prohibition policies, Moutai is initiating market-oriented reforms and price hikes to drive a recovery in FY26F. Revenue and profit are expected to grow by 2.7% and 2.9% respectively in FY26F, mainly supported by increased direct sales and a higher average selling price (ASP).
- Highlights:
- FY25 revenue down 1.2%, net profit down 4.5% YoY.
- Market reforms include expanding Feitian Moutai sales on the iMoutai platform and new consignment sales via distributors.
- Distributor restocking is weak; direct sales (especially group purchases) are up significantly.
- Dividend yield remains attractive at approximately 4% for FY25-27F.
- Downside risks: tougher competition and macro weakness.
- Potential positive catalysts: faster-than-expected sales recovery, especially from the business entertainment segment.
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 Securities website : https://www.chinastock.com.hk
