- Securities firms have continued to hold positive views on Kweichow Moutai (600519.SS), reports Securities Times.
- Shares of the company closed at a historical high of RMB 362 on February 22.
Why It Matters:
- One securities firm Shenwan Hongyuan estimated the EPS of Kweichow Moutai to be RMB 13.25 in 2016, RMB 16.46 in 2017, and RMB 20.88 in 2018, which indicates 7%, 24%, and 27% growth rate respectively. And the price target for the company has been raised to RMB 450 per share.
- Securities firms suggest that Kweichow Moutai is the leading luxury liquor producer in China. After a recession in the industry during the past a few years, the company has strengthened its No.1 position in the sector and it enjoys a premium when setting prices.
- Merchant Securities is another firm which holds a positive view and the firm suggests that the continuous high demand for Moutai’s high-end liquor will further push up the company’s share price over the next two years.