Company Coverage
Kweichow Moutai (600519 CH): 2Q26: Results Missed; Stated-owned Investors Disposed Shares
HOLD (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Rmb1,341.99
Rmb1,295.00
-3.5%
Rmb1,395.00
Analyst
Analyst
Highlights
Moutai’s 2Q26 revenue declined 5% yoy and net profit dropped by 7% yoy, missing consensus by 8% and 9%, respectively.
By channel, direct sales rose 34% yoy, accounting for 61% of liquor revenue in 2Q26, while wholesale channel sales declined 35% yoy. i-Moutai sales came in at Rmb18.7b in 2Q26, up 283% yoy, driven by its continued DTC transformation.
As of end-2Q26, stated-owned investors, including Central Huijin Asset Management and China Securities Finance Corporation, no longer appear among Moutai's top 10 shareholders. By comparison, as of end-1Q26, the two held 0.83% and 0.32% of total shares, respectively. Maintain HOLD; cut target price by 7% to Rmb1,295.00.
Analysis
2Q26 results missed. Kweichow Moutai (Moutai) reported 1H26 revenue of Rmb92,278m (+1% yoy). Gross profit (operational) was Rmb81,229m (-0.5% yoy), and operational gross margin was 89.6% (-1.7ppt yoy). EBIT totalled Rmb61,089m (-2% yoy), and EBIT margin was 66.2% (-2.1ppt yoy). Net profit was Rmb44,517m (-2% yoy), and net margin was 48.2% (-1.6ppt yoy). Core net profit was Rmb44,464m (-2% yoy), and core net margin was 48.2% (-1.6ppt yoy).
Highlights
Moutai’s 2Q26 revenue declined 5% yoy and net profit dropped by 7% yoy, missing consensus by 8% and 9%, respectively.
By channel, direct sales rose 34% yoy, accounting for 61% of liquor revenue in 2Q26, while wholesale channel sales declined 35% yoy. i-Moutai sales came in at Rmb18.7b in 2Q26, up 283% yoy, driven by its continued DTC transformation.
As of end-2Q26, stated-owned investors, including Central Huijin Asset Management and China Securities Finance Corporation, no longer appear among Moutai's top 10 shareholders. By comparison, as of end-1Q26, the two held 0.83% and 0.32% of total shares, respectively. Maintain HOLD; cut target price by 7% to Rmb1,295.00.
Analysis
2Q26 results missed. Kweichow Moutai (Moutai) reported 1H26 revenue of Rmb92,278m (+1% yoy). Gross profit (operational) was Rmb81,229m (-0.5% yoy), and operational gross margin was 89.6% (-1.7ppt yoy). EBIT totalled Rmb61,089m (-2% yoy), and EBIT margin was 66.2% (-2.1ppt yoy). Net profit was Rmb44,517m (-2% yoy), and net margin was 48.2% (-1.6ppt yoy). Core net profit was Rmb44,464m (-2% yoy), and core net margin was 48.2% (-1.6ppt yoy).
HOLD (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Rmb1,341.99
Rmb1,295.00
-3.5%
Rmb1,395.00
Analyst
Analyst
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