[이데일리 이은정 기자] Guizhou Maotai (貴州茅台, Guizhou Maotai), also known as China’s ‘Emperor’, recorded better-than-expected results in the first quarter. The stock price rose for three consecutive trading days. Although it has fallen by about 10% this year, it is considered a good performance compared to other Chinese high-end white liquor companies, who have seen a sharp decline due to concerns about a contraction in consumption due to the high-strength lockdown in China. Analysts say that a mid- to long-term approach to brand power and continuous profit improvement is effective.
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According to Marketpoint on the 29th, Guizhou Motae, listed on the Shanghai Stock Exchange, closed at 1835 yuan, up 2.23% from the previous trading day on the 28th. It rose for three consecutive trading days. This is a 10.54% drop compared to the beginning of this year (2051.23 yuan on January 4).
Guizhou Maotae’s first quarter sales and controlling shareholders’ net income were 32.296 billion yuan and 17.245 billion yuan, up 18.4% and 23.6% year-on-year, respectively. It surpassed the tentative results announced in March and recorded the highest quarterly results. In the first quarter, the operating profit margin was 72.4% and the net profit margin was 52.0%, up more than 3 percentage points from the previous quarter, respectively.
Kang Hyo-joo, a researcher at KB Securities, said, “The increase in the proportion of direct sales stores while raising the prices of some affiliates contributed to the improvement in profitability.
It is also expected that this year’s performance target will be sufficiently achieved. The annual sales target of Guizhou Mao Taizhou is 125.88 billion yuan. This is an increase of 15.0% compared to the previous year. In the first quarter, it exceeded the quarterly average level, and in the second quarter, it was analyzed that the impact of the lockdown in China would be limited due to the traditionally weak season for white liquor sales.
Although the share price of Guiju Motae has fallen by more than 10% this year, it is evaluated that it has performed well compared to other high-end white wine companies. Korea Investment & Securities pointed out that the stock price of Gwiju-motae rose 0.3% since March, and the amount of olyang (-15.1%) and yanggao (-15.3%) fell sharply. Although consumer sentiment worsened due to the spread of Corona 19 in China in March, it is evaluated that Guizhou Motae recorded solid retail sales thanks to its strong brand power.
Kim Mi-sun, a researcher at Samsung Securities, said, “The 12-month forward price-to-earnings ratio of Gwiju-mo-tae was 33.4 times (Wind), which was lower than the average for the past five years. As a leading company, the possibility of a re-rating is increasing.”
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However, securities companies evaluated the risk of maintaining a strong quarantine policy due to the re-spread of Corona 19, slowing consumption, intensifying competition between companies, and sluggish sales in common. We believe the mid- to long-term approach is valid as there is ample room for profitability improvement.
Lee Dong-yeon, a researcher at Korea Investment & Securities Co., said, “Unlike other brands that have recorded single-digit declines from mid-March to April, when the lockdown in China began, Guizhou Motae achieved the strongest sales performance thanks to the strength of the brand. It is a company that is attractive enough from a mid- to long-term perspective as it is expected to continue to improve profitability.”
