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Consumer Non-Durables

Kweichow Moutai Co., Ltd.

Company Background

Kweichow Moutai is a Chinese state-owned producer of baijiu, a traditional and strong alcoholic spirit made from sorghum, wheat and barley. The company's Moutai baijiu is considered to be China's luxury liquor. The company is known as one of the industry giants, alongside Sichuan-based Wuliangye Group.

Founded in 1999, Kweichow Moutai is based in Renhuai, Guizhou Province. It is headed by chairman Yuan Renguo. The distiller is listed on the Shenzhen Stock Exchange. Baijiu, has an alcohol content of around 40% and is particularly popular in China's cold northeastern and inland areas. China's baijiu market stood at about 10 trillion yen ($80.3 billion) in 2013.

High-end baijiu, ranges from hundreds of dollars to thousands of dollars per bottle, and was often served at banquets and events for, or presented as gifts to, high-ranking government officials and clients. However, its overall consumption is declining because of the current voluntary ban on extravagant banquets in the wake of President Xi Jinping's anti-graft campaign.

Business Summary

Kweichow Moutai Co., Ltd. engages in the operation of wine industries. It operates through the following business segments: Procurement of Raw materials, Production, and Sales. The Procurement of Raw Materials segment purchases raw materials according to the company's production and sales plan. The Production segment provides brewing, storage, blending, and packaging services of the wine products. The Sales segment distributes wine products through domestic social channels, direct sales channels, and foreign social channels. The company was founded on November 20, 1999 and is headquartered in Renhuai, China.

Financial Highlights

Dec 2020 CNYUSD
Revenue84,106.72M12,185.43M
Gross Profit75,354.91M10,917.46M
Operating income66,382.13M9,617.48M
Income before tax66,196.94M9,590.65M
Net income46,697.28M6,765.53M
EBITDA67,699.00M9,808.27M
Diluted EPS37.175.38
Dividends Per Share19.292.79
Total Assets213,395.81M32,630.32M
Total liabilities45,675.12M6,984.17M
Total equity161,322.73M24,667.83M
Operating cash flow51,669.06M7,485.84M
Currency in CNYCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 33,646.15M 52,658.54M 65,910.45M 76,121.04M 84,106.72M
Gross Profit 29,782.16M 46,160.63M 58,825.51M 68,102.69M 75,354.91M
Operating income 24,232.44M 38,884.28M 51,329.90M 59,044.22M 66,382.13M
Income before tax 23,957.88M 38,740.07M 50,827.60M 58,782.55M 66,196.94M
Net income 16,718.36M 27,079.36M 35,203.62M 41,206.47M 46,697.28M
EBITDA 25,166.64M 40,010.11M 52,505.33M 60,287.70M 67,699.00M
Diluted EPS 13.31 21.56 28.02 32.80 37.17
Dividends Per Share 6.78 10.99 14.53 17.02 19.29
Total Assets 112,934.53M 134,610.11M 160,152.17M 183,042.37M 213,395.81M
Total liabilities 37,020.42M 38,574.91M 42,514.38M 41,165.99M 45,675.12M
Total equity 72,894.13M 91,451.52M 113,067.87M 136,010.34M 161,322.73M
Operating cash flow 37,451.24M 22,153.03M 41,385.23M 45,210.61M 51,669.06M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 5,064.47M 7,791.77M 9,960.75M 11,016.30M 12,185.43M
Gross Profit 4,482.86M 6,830.29M 8,890.04M 9,855.87M 10,917.46M
Operating income 3,647.51M 5,753.62M 7,757.26M 8,544.93M 9,617.48M
Income before tax 3,606.18M 5,732.28M 7,681.35M 8,507.06M 9,590.65M
Net income 2,516.47M 4,006.87M 5,320.16M 5,963.43M 6,765.53M
EBITDA 3,788.12M 5,920.21M 7,934.90M 8,724.88M 9,808.27M
Diluted EPS 2.00 3.19 4.23 4.74 5.38
Dividends Per Share 1.02 1.62 2.19 2.46 2.79
Total Assets 16,250.74M 20,671.08M 23,326.41M 26,277.67M 32,630.32M
Total liabilities 5,327.06M 5,923.66M 6,192.28M 5,909.81M 6,984.17M
Total equity 10,489.11M 14,043.53M 16,468.51M 19,525.72M 24,667.83M
Operating cash flow 5,637.22M 3,277.93M 6,254.36M 6,542.91M 7,485.84M

Valuation Measures

Dec 2020
PER53.74
ROA23.55%
ROE31.41%
Operating margin78.92%
Profit margin55.52%

Key executives

  • General Manager & Director: Jing Ren Li
  • CFO, Board Secretary, Chief Accountant & Deputy GM: Gang Liu
  • Director & Director-Centralized Procurement: Zhi Gang Fu
  • Member-Supervisory Board & Director-HR: Cheng Long Liu
  • Securities Representative: Hua Chen

Shareholders

  • Guizhou State-Owned Assets Sup. & Admin. Commission (64.2%)
  • E Fund Management Co., Ltd. (0.9%)
  • China Investment Corp. (Investment Management) (0.8%)
  • China Universal Asset Management Co., Ltd. (0.6%)
  • China Asset Management Co., Ltd. (0.6%)
  • China Securities Finance Corp. Ltd. (0.6%)
  • Capital Research & Management Co. (World Investors) (0.5%)
  • UBS Asset Management (Hong Kong) Ltd. (0.4%)
  • ZHANG LING /CHINA/ (0.3%)
  • Invesco Great Wall Fund Management Co. Ltd. (Invt Mgmt) (0.3%)

Contact Details

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Competitors

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