Kweichow Moutai: World’s largest liquor brand becomes China’s largest publicly traded company

Kweichow MoutaiChinese company, known for making popular national spirit, baijiu, now According to Refinitiv data, China’s largest publicly traded company was announced with a market value this year after its shares rose 23%.
It is currently worth 1.8 trillion yuan ($ 259 billion) and is one of the country’s best banks China Industry and Trade Bank (IDCBF)Just under 1.8 trillion yuan ($ 253 billion).
For comparison, Chinese technology giants Tencent (TCEHY) and Ali Dad (FATHER) about $ 605 billion and $ 614 billion. The first is traded in Hong Kong, the second is in New York and Hong Kong.
In 2017, it became the world’s largest liquor producer according to market value. Diageo (Deon)British firm owned by Johnnie Walker and other major brands. Diageo’s current market cap is around £ 65 billion ($ 81 billion). AB InBev (BUD)The world’s largest brewer, worth about 78 billion euros ($ 88 billion).
China's first 1,000-yuan stock liquor company since 2005
Last year, Moutai becomes the first Chinese company to see stock prices since 2005 Hit 1,000 yuan (about $ 145). The stock is now trading at 1,460 yuan.
Chinese officials were wary of the company’s supreme valuation in the past. State media in 2017 he called The company doubled in just 11 months after its shares and called on investors to take the “rational opinion” of the company and not to participate in “short-sighted speculations”.

Although it remains the favorite choice among analysts, this has stabilized the stock for a moment.

I saw the bottle at a liquor store in Moutai, Guizhou, China.

Hao Hong, research chief of BOCOM International, the Securities Branch of China Communications Bank, said there is not a single factor driving the stock’s final performance.

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However, he said, it is possible for investors to avoid more risks during the coronavirus pandemic, and that, despite the high price, it allows them to make purchases to Moutai’s shares.

Hong said the company has a “very clear” formula for success. Over the years, strong earnings growth, a preferred brand and rarely seen cash flow among Chinese firms have helped prices increase steadily.

“I challenge you to find another company that is so predictable,” Hong said. “Great margins, a very popular brand … people are still buying as if there is no tomorrow.”

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About the Author: Abbott Hopkins

Analyst. Amateur problem solver. Wannabe internet expert. Coffee geek. Tv guru. Award-winning communicator. Food nerd.

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