On December 29, Kweichow Moutai Co.Ltd(600519) held the Maotai “treasure night” and 53% vol 500ml Kweichow Moutai Co.Ltd(600519) wine (treasure) press conference at the source of Maotai liquor, the heritage building of Maotai brewing industry.
Maotai launches high-end new products
On the evening of December 29, Maotai’s “night of treasures” and 53% vol 500ml Kweichow Moutai Co.Ltd(600519) liquor (treasures) press conference were held at the source of Maotai liquor, the heritage building of Maotai brewing industry. This is the first new product press conference held here in the 70 years since the establishment of Maotai factory.
As early as 1986, the precious Maotai liquor received its “birth certificate”, which is also the first high-end product launched after the establishment of Maotai distillery. At present, Maotai takes the initiative to adapt to the new consumer demand and build a Maotai liquor product echelon represented by noble products, treasures, boutiques and classics. Some people in the industry believe that with the advent of Kweichow Moutai Co.Ltd(600519) liquor (treasures), the main camp of Maotai in the period of high-quality development has gradually formed. “Treasures” may become a corner and become a competitive main force in the high-end product line.
The building complex of this press conference was approved and announced as the seventh batch of national key cultural relics protection units in 2013, including 10 heritages such as the former site of “Chengyi” burning house, “Ronghe” burning house, “Hengxing” burning house, dry Qu warehouse, fermentation warehouse, dry Qu warehouse, fermentation warehouse and stone mill in the first area of koji making, as well as the fifth and eighth old wine warehouses of Xiajiu warehouse, It is also regarded as the spiritual symbol of the source of Maotai liquor production. At the press conference on the 29th, Maotai set up a three-dimensional release space of “traveling” and “immersion”.
At the press conference, Ji Keliang, former chairman of Maotai Group, said, “compared with the launch of the first rare Maotai liquor 35 years ago, today’s Maotai distillery has a better foundation and capacity. The production capacity is 44 times that of 1986, the old liquor reserve is more abundant, the technical talent team is stronger, and the quality management is more scientific and standardized.”
In terms of packaging style, the new Zhenjiu Maotai continues the main tone of the packaging style of the 1986 edition. In terms of liquor body design, Wang Gang, the chief blending master of Maotai, led the blending, while his father was one of the blending masters of precious Maotai liquor in that year.
the price of Feitian Maotai has not increased for many months
Recently, Luzhou Laojiao Co.Ltd(000568) , gujinggong and so many Baijiu enterprises announced the price increase of products. Baijiu price rises, and Moutai’s factory price remains unchanged. Ding Xiongjun, Secretary of the Party committee and chairman of Maotai Group, once said that the reform of the marketing price system must be changed and strive to make Maotai return to the commodity attribute, which is interpreted by the market as a signal that Maotai may rise in price. However, at present, Ding Xiongjun has implemented price control measures since taking office.
Citic Securities Company Limited(600030) according to the survey, according to the feedback of dealers, Maotai has notified to prepare goods for the Spring Festival in the near future. It is expected to complete about 25% of the annual quota (January February), and the price has not been notified yet. In addition, the survey also mentioned that the planned outsourcing of 1479 yuan in December has begun to arrive. At the beginning of December, it was reported that the market put an additional 800 tons of quota to traditional dealers at a price of 1479 yuan. Maotai has never responded positively to this situation, and the research feedback seems to have confirmed this situation.
After the new director took office, Maotai issued a series of price stabilization policies. In October, since October 15, the guests of Maotai International Hotel no longer enjoy the qualification of 1499 yuan to buy Feitian Maotai. Guests who eat and drink in the hotel and consume more than 1000 yuan can apply for wine purchase, but they can only drink on site, and the bottle body and bottle cap shall be returned after drinking.
Before the double festival, Maotai put forward three 100%, including 100% unpacking sales. At that time, the price of Maotai liquor experienced a sharp decline. Recently, the relevant person in charge of Kweichow Moutai Co.Ltd(600519) responded to the media that the unpacking order of Maotai has been completely cancelled, and 12 bottles of Maotai will be put into open box sales.
“Maotai unpacking order” is a measure taken by Gao Weidong, former chairman of Kweichow Moutai Co.Ltd(600519) group, to control Maotai prices, crack down on cattle hoarding and promote consumer consumption. Unexpectedly, after the “unpacking order” was implemented, it not only failed to effectively crack down on cattle hoarding, but also gave birth to a Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) – Maotai carton, which was fired up to 500 yuan at one time. The price gap between Sanmao and Yuanmao also widened, once as high as 1000 yuan.
Under a set of combined punches, the “flying” trend of Maotai liquor price finally showed signs of turning. On December 28, Maotai liquor price fell across the board. According to the statistics of Mao powder society, the 21-year flying original box, 21-year flying loose bottle, 20-year flying original box and 20-year flying loose bottle fell by 50 yuan, 20 yuan, 70 yuan and 30 yuan respectively.
Baijiu plate warmer
The Baijiu plate rose again after yesterday’s rare killing and ended at noon. Kweichow Moutai Co.Ltd(600519) reported 2081 yuan / share, up 1.96%.
Qianhai Securities Research Report in East Asia pointed out that the price increase of Baijiu company showed that the pressure of cost side was gradually being transmitted to the downstream demand side, and the price increase could increase the fourth quarter of the company and the profit in 2022. In the medium to long term, the impact of consumption upgrading on Baijiu plate core demand has not changed. The price increase helps enhance the brand strength of Baijiu plate company, and increase the confidence of dealers and consumers.
At present, the Baijiu plate is in the golden period of development. With the continuous promotion of consumption upgrading and the reform of the companies in the plate, the whole industry is showing a trend of higher quality. And in 2022, under the role of the macro policy of macro policy to expand domestic demand and promote consumption, the Baijiu plate will continue to maintain a high prosperity of “good internal company + external good environment”. High-end Baijiu and strong brand with high channel strength still have high allocation value.
Huaxin Securities believes that it continues to be optimistic about the brand moat, the medium and long-term pattern of high-end liquor is still stable, and the role of Maotai dinghaishen needle is still obvious. It is estimated that the EPS from 2021 to 2023 will be 42.07/48.64/55.72 yuan respectively, and the corresponding PE of the current stock price will be 50 / 44 / 38 times respectively. It will be covered for the first time and given a “recommended” investment rating.
For the subsequent trend of Baijiu plate, Tianfeng Securities Co.Ltd(601162) pointed out that high-end Baijiu has strong barriers, and the business model has advantages. It is expected that the performance of 2022 will be relatively stable. At present, the valuation is in a reasonable position, and the market brought by valuation switching may be enjoyed in the short term; In the medium term, the capital will be the first choice for high-end baijiu. In the long run, the ability to raise the price of high-end Baijiu is still in existence. It is only suppressed by external factors in the short term. The core logic remains unchanged and is still a long-term core asset.
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(Securities Times)
