Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Caixin Global
Caixin Global
Business
Guo Yingzhe

Kweichow Moutai Sees Earnings Beat for 2022

What’s new: Chinese liquor giant Kweichow Moutai Co. Ltd. (600519.SH) is expecting a 19.3% increase in net profit attributable to shareholders this year to around 62.6 billion yuan ($9 billion), higher than 2021’s 12.3% growth, according to a Thursday exchange filing.

The profit growth is above analysts’ average forecast of 18.8%, according to data from iFinD, a market intelligence provider. Moutai said its 2022 revenue would grow 16.2%, higher than last year’s 11.7%.

At the annual marketing meeting held Thursday, Moutai’s Chairman Ding Xiongjun said its new “baijiu”-infused ice cream product is expected to generate 262 million yuan in revenue. The company hopes to expose younger consumers to Moutai liquor though the ice cream, which has about 2% baijiu (白酒) in each tub.

The context: Guizhou province-based Kweichow Moutai is the most valuable Chinese onshore stock with a market capitalization of 2.16 trillion yuan, 47% higher than runner-up Industrial and Commercial Bank of China Ltd.

Moutai’s share price has rebounded 15.3% over the past month after dropping 17.7% for the past year, as investors priced in expectations that consumer spending on liquor would recover as China eased Covid-19 restrictions.

Last month, Moutai announced a 27.5 billion yuan special cash dividend to shareholders. It’s the first time since going public that the company has paid a bonus separate from its regular annual dividend.

Moutai unveiled its baijiu-infused ice cream this year in hopes of attracting more young customers amid analyst concerns that young people are less interested in Chinese liquor.

Related: Kweichow Moutai to Splash $3.8 Billion in First-Ever Special Cash Dividend

Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Bertrand Teo (bertrandteo@caixin.com)

Get our weekly free Must-Read newsletter.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.