0240 GMT - Kweichow Moutai remains attractive to long-term investors, given its high earnings visibility and solid operating cashflow, despite its 3Q net-profit growth slowdown, Citi analysts Xiaopo Wei and Vincent Yang say in a research note. Moutai's 3Q sales and profit growth slowdown reflect the relatively weak demand for Chinese liquor baijiu during China's Golden Week holidays, the analysts say. They reckon that Moutai intentionally slowed the pace of shipments to distributors in 3Q after fast shipment growth in 1H, to ensure the stability of market prices. Citi maintains its buy rating on Moutai, saying the stock is its top buy in the baijiu sector. It keeps its target price unchanged at CNY2,272.00.Shares were recently 0.1% higher at 1645.70.(sherry.qin@wsj.com)
(END) Dow Jones Newswires
October 22, 2023 22:40 ET (02:40 GMT)
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