Moutai Shares Gain on Double-Digit Profit Growth, Higher Price Targets
Zhang Yushuo
DATE:  Mar 29 2019
/ SOURCE:  yicai

(Yicai Global) March 29 -- Kweichow Moutai's shares rose after the Chinese liquor maker posted a 30 percent jump in annual net profit and brokerages raised their price targets on the stock.

Moutai [SHA:600519] jumped 5.9 percent to close at CNY853.99 (USD127.15) after reaching a record high of CNY861.5 at the lunch bell amid a wider rally in Chinese equities. The benchmark Shanghai Composite Index gained 3.2 percent today. Moutai's stock is up more than 40 percent so far this year.

Net profit at the world's most-valuable distiller was CNY35.2 billion (USD5.24 billion) last year, the Guizhou province-based company said in an earnings report released late yesterday. It was the firm's second straight year of double-digit profit growth. Revenue climbed almost 27 percent to CNY74 billion.

After the company delivered its better-than-expected results, analysts at securities firms raised their targets for its stock price. China International Capital pegged Moutai's stock at CNY990 (USD147.42), Citic Securities set a target of CNY1,000, while Goldman Sachs jacked its expectation to CNY1,016.

As of March 26, Moutai's share price was 6.4 percent lower than the average 12-month price target, signaling the best potential return among the world's leading liquor makers, Bloomberg reported.

Editor: Ben Armour 

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Keywords:   Kweichow Moutai,SHARES