Moutai shares sees 6th day of declines

Updated 2017-07-06 11:37:40 China Daily

Shares of Kweichow Moutai Co, the best-known high-end Chinese liquor, have experienced consecutive losses for six trading days, as a result of an excessive surge earlier, with industry analysts regarding it as rational declines.

On Wednesday, Moutai shares edged up 1.82 percent to close at 460.13 yuan (.7). Its share price is now the highest among listed Chinese companies. In the six trading days before Wednesday, Moutai's cumulative drop reached 6.76 percent, and its market value shrunk by more than 40 billion yuan.

Last week, Moutai's market value exceeded 600 billion yuan, as its share price had been consistently advancing this year, and its market value had topped that of other global liquor producers.

Earlier this year, a number of institutions have been bullish about the growth potential of Moutai stock, rating it "recommend to buy" or "strongly recommended". TF Securities earlier proposed that Moutai's target price could reach 615 yuan.

Huang Fusheng, an analyst at Pacific Securities, said in the past three years, the growth rate of Moutai's net profit had been lower than 10 percent, its shares had been affected by speculative investment.

In 2016, 2015 and 2014, Moutai's net profit attributable to shareholders grew by 7.84 percent, 1 percent and 1.41 percent, respectively, according to the company's earnings report.

"The earlier growth and valuation were too high, so the whole market was concerned about Moutai's share price, and some people have been reluctant to buy it," Huang said.

"Moutai's valuation bubble, and the fluctuation of the market, as well as the decrease of the growth rate, could be the signals of the end of the booming growth of the Chinese liquor sector and Moutai, but that remains far off."

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58September 20 2018 22:31:16

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16September 20 2018 22:31:16

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18September 20 2018 22:31:16

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords