(Yicai Global) April 18 -- Kweichow Moutai Co. [SHG:600519], maker of high-end baijiu, a Chinese white spirit, saw its share price exceed CNY400 (USD58) this morning, reaching a new all-time high. The surge helped push its gross market value up to CNY502 billion, surpassing half of the 2016 gross domestic product (GDP) of Guizhou province in southern China where it is located.
The closing price of Kweichow Moutai stood at CNY404.65 per share, up by 2.24 percent, reaching a transaction volume of CNY2 billion. Its share price has gained nearly 90 percent since last year.
In terms of market value, Kweichow Moutai ranks ninth on the Shanghai and Shenzhen stock markets, with more than CNY500 billion. This means the current market value of the white spirit producer almost hit half of its province's GDP, with Guizhou province producing a GDP of CNY1.17 trillion last year.
In its recently released research report, Minsheng Securities pointed out that China's upscale catering industry has shown a pick-up trend fueled by consumption upgrading. The recent sharp rise in sales data of white spirit, beer and yellow rice wine added weight to this momentum. "From our perspective, the high-end catering industry is expected to continue to turn around," the report highlighted.
On April 15, Kweichow Moutai published its annual report 2016, recording a turnover of CNY28.8 billion, up 18.99 percent over the previous year, and a net profit of CNY16.7 billion, up 7.84 percent year-on-year. Its official website shows a profit of CNY6.9 billion in the first quarter this year, up 13 percent. The company's major economic indicators also posted a double-digit growth.