Moutai's Share Buyback Is Positive Surprise, Citi Says -- Market Talk

Dow Jones09-23

0728 GMT - Kweichow Moutai's first ever share buyback is a positive surprise, Citi analysts write in a note. This is the company's second attempt to increase shareholder returns over the past two months after raising its dividend payout ratio for 2024-2026, they add. The move may attract more long-term investors as the Chinese market is quite volatile currently, they say. Citi expects further plans from the company to stabilize wholesale average selling prices over the next six months to restore investor confidence in the long-term outlook. The bank says Moutai's wholesale average selling price should find strong support at CNY2,200. Citi maintains a buy rating on the stock with a target price of CNY2,365. Shares closed at CNY1,261.54. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

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September 23, 2024 03:28 ET (07:28 GMT)

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Comments

  • GoodLife99
    09-26
    GoodLife99
    [LOL] [LOL]  [LOL]   thought DCA some below 1,300 & bit by bit later for  $Kweichow Moutai Co.,Ltd.(600519)$  , but just few days it's returning above 1,400 No wonder Citi maintained buy rating of a target price at 2,365 which may be possible as China is planning for a tax reduction on liquor content more than 30% in coming mid October this year.
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