DOCSLIB.ORG

Luzhou Laojiao

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Luzhou Laojiao INITIATION Company Note Food & Beverages│China│October 17, 2019 Insert Insert China Luzhou Laojiao ADD Successful channel reforms Consensus ratings*: Buy 26 Hold 5 Sell 0 ■ We like Luzhou Laojiao for its successful distribution channel reforms, strong Current price: Rmb86.12 profitability improvement and potential ASP hike for its star brand – Cellar 1573. Target price: Rmb122.0 ■ We forecast a 27% EPS CAGR in FY18–21F, driven by a 23%/24% sales CAGR from its high-end and mid-range product segments, respectively. Previous target: Rmb ■ We initiate with an Add rating and DCF-based TP of Rmb122 (WACC:9.6%) Up/downside: 41.7% CGS-CIMB / Consensus: 21.4% New distribution network starting to reap benefits Since 2015, Laojiao has taken four years to restructure its distribution network, providing Reuters: 000568.SZ stronger market support for its distributors and restoring its high-end brand image. Now Bloomberg: 000568 CH Laojiao has around 3,000 distributors with over 8,000 of its own salespeople. Its brand Market cap: US$17,826m value rose by 40% yoy to US$5.3bn in 2019, according to Brand Finance. Backed with Rmb126,144m this strong distribution network, we expect Laojiao’s channel reforms to start to bear fruit Average daily turnover: US$129.7m and its sales to grow at a 19% CAGR in FY18–21F. We also expect its high S&D Rmb916.1m expenses ratio of 26% in 2018 to gradually fall back by 5%pts to 21% in 2021F, leading Current shares o/s: 1,465m to OPM expansion of 8.4%pts from 34.2% in FY18 to 42.4% in FY21F. Free float: 99.7% Product portfolio premiumization to capture consumption upgrade *Source: Bloomberg Laojiao’s product structure has been continually been upgraded. Its high-end baijiu (i.e. Key changes in this note Cellar 1573) sales grew rapidly by 37% yoy to Rmb6.4bn, accounting for 50% of baijiu N/A sales in FY18; while its middle-range baijiu was up by 28% yoy to Rmb3.7bn, contributing 22% of sales. Laojiao has gradually lifted its retail selling price (RSP) YTD because of Price Close Relative to SHCOMP (RHS) strong market demand and low channel inventory. According to JD.com, its RSP for 109.00 232 major products has risen by 7% to 38% YTD, and Laojiao has successfully captured the 89.00 192 consumption upgrade trend. 69.00 152 49.00 112 ASP hike could be a near-term catalyst 29.00 72 40 Laojiao’s price strategy is closely pegged with that of Wuliangye, which successfully 30 th 20 increased its ex-factory price by 12.6% through launching the 8 generation of Wuliangye 10 Vol m Vol in June 2019. We expect Laojiao to follow Wuliangye, increasing its ex-factory price of 10月-18 1月-19 4月-19 7月-19 Cellar 1573 in the near future. Meanwhile, due to a supply shortage of premium baijiu in the RSP range of Rmb1,000–2,000/bottle, we expect Cellar 1573 to ramp up by 7% Source: Bloomberg volume CAGR and 15% ASP CAGR in FY18–21F. Price performance 1M 3M 12M Initiate coverage with an Add rating and DCF-based TP of Rmb122 Absolute (%) -1.9 2 105.1 We initiate coverage on Laojiao with an ADD rating and DCF-based TP of Rmb122 Relative (%) -1.9 .4 88.9 (WACC: 9.6%), implying 38x/31x FY19F/20F P/E. Laojiao is currently trading at 27x FY19F P/E, 2.0 s.d. above its historical average of 19x since its listing in 2009. In the Major shareholders % held past, Laojiao’s valuation was largely in line with, or slightly below, the industry average. Luzhou Laojiao Group Co. Ltd 26.0 We believe that Laojiao deserves to trade at premium vs. its peers owing to a potential ASP hike for its super-premium Cellar 1573 products and strong sales growth Insert momentum, boosted by its profit-sharing distribution model. Downside risks are as follows: 1) over 67% of its sales are derived from its top five customers, which indicates the key distributors have strong bargaining power and influence on Laojiao’s distribution channels, which might be a tail risk in the long term; and 2) a macroeconomic slowdown may affect super-premium baijiu consumption. Financial Summary Dec-17A Dec-18A Dec-19F Dec-20F Dec-21F Revenue (Rmbm) 10,395 13,055 16,264 18,930 22,097 Operating EBITDA (Rmbm) 3,330 4,502 6,107 7,647 9,594 Net Profit (Rmbm) 2,558 3,486 4,697 5,802 7,222 Core EPS (Rmb) 1.75 2.38 3.21 3.97 4.94 Core EPS Growth 26.9% 36.2% 34.7% 23.5% 24.5% FD Core P/E (x) 48.14 36.12 26.82 21.72 17.45 Analysts DPS (Rmb) 1.25 1.55 2.09 2.58 3.21 Lei Yang Dividend Yield 1.45% 1.80% 2.43% 3.00% 3.73% T (86) 21 6162 9676 EV/EBITDA (x) 35.39 25.97 19.10 15.11 11.85 P/FCFE (x) 52.35 44.52 37.07 25.56 19.09 E [email protected] Net Gearing (55.2%) (54.7%) (51.7%) (52.1%) (54.5%) Sun Feifei P/BV (x) 8.31 7.44 6.78 6.12 5.45 T (86) 21 6162 5750 ROE 19.6% 21.7% 26.5% 29.6% 33.0% E [email protected] % Change In Core EPS Estimates CGI/consensus EPS (x) 1.00 0.99 1.02 SOURCES: CGIS RESEARCH, COMPANY DATA, BLOOMBERG Powered by the EFA Platform Food & Beverages│China Luzhou Laojiao│October 17, 2019 Successful channel reforms Investment summary Laojiao expects to be the next baiju company to tap RSP above Rmb1,000 per bottle after Wuliangye In the current new growth cycle of the China baijiu sector, starting from 2018, with the consumption upgrade trend, top tier brand Moutai increased its retail selling price (RSP) of 53°Feitian MT to Rmb2,700 per bottle from Rmb1,499 per bottle. This has triggered strong customer demand for other baijiu products with a strong brand name but a more reasonable RSP in the range of Rmb1,000–2,000 per bottle in the super premium baijiu market. In Jun 2018, another top-tier baijiu brand, Wuliangye, successfully launched its new 52° Wuliangye on the market with an RSP of Rmb1,000–1,300 per bottle, from the previous Rmb920–950 per bottle. Wuliangye has partially filled in the price gap for the RSP range of Rmb1,000–2,000 per bottle through this product upgrade. Wuliangye increased its ex-factory price from Rmb789/bottle to Rmb889/bottle, up 13%. We expect total sales volume of 52°Wuliangye to reach 18,000 tonnes in 2019F, up 15% YoY. We believe Luzhou Laojiao (Laojiao) can raise its ex-factory price after Wuliangye’s price increase, supported by its strong brand name and sufficient production capacity for Cellar 1573. Currently, the ex-factory price for Laojiao Cellar 1573 is Rmb780/bottle, with a first-layer wholesale price of Rmb820/bottle and an RSP of Rmb919/bottle. We expect Laojiao’s sales to grow at a 19% CAGR from Rmb13bn in 2018 to Rmb22bn in 2021F, driven mainly by ASP improvement through product upgrades and volume growth. Figure 1: Core super-premium baijiu products with strong brand names in the China consumer market SOURCES: CGIS RESEARCH, COMPANY DATA, BLOOMBERG 2 Food & Beverages│China Luzhou Laojiao│October 17, 2019 Figure 2: 2002–21F Laojiao sales performance in the different baijiu phases (Rmb m) Baijiu Baijiu new growth 25,000 Baijiu recovery 80% Baijiu fast growth period adjustment period (2018-) period (2015-2017) 22,097 (2003-2012) period (2013-2014) 60% 20,000 18,930 16,264 40% 15,000 13,055 20% 11,556 0% 10,000 In Jan 2001, Laojiao launched its star -20% product - Cellar1573 5,000 -40% 0 -60% FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19F FY20F FY21F Laojiao's revenue YoY (RHS， %） SOURCES: CGIS RESEARCH, COMPANY DATA Laojiao Cellar 1573 brand with strong revenue resilience The intrinsic value of Laojiao’s baijiu comes from its wholly-owned 10,086 aged cellars, 1,619 of which are more than 100 years old. The oldest ones can be traced back to the Wanli Period of the Ming Dynasty in 1573 A.D. To promote Luzhou’s intrinsic value in the baiju market, the company launched a high-end Cellar 1573 (国窖1573) product in Jan 2001. This was followed by a large marketing campaign to promote and strengthen its Laojiao brand among consumers as one of the top high-end brands. The strategy was quite successful, as Laojiao achieved a 23% sales CAGR in 2000–2012, 5.8%pts higher than Wuliangye’s 17% CAGR. Laojiao also gradually raised its ex-factory price of Cellar 1573 from Rmb268 per bottle in 2002 to Rmb889 per bottle in 2012; and in 2012, the RSP of Cellar 1573 reached Rmb1,389 per bottle in the end consumer market, 25% higher than 52° Wuliangye’s RSP of Rmb1,109 per bottle at the time. In the last baijiu growth cycle, we think Laojiao successfully built up its high-end brand image nationwide and established a solid customer base for long-term market development. However, in the 2013–15 baijiu sector restructuring period, Laojiao management misjudged the negative impact on high-end baijiu consumption of the government’s anti-corruption measures and implemented an inappropriate marketing strategy to cope with oversupply in the baijiu market; eventually Laojiao’s sales declined at a 16% CAGR in 2012–15; and sales volume of the high-end Cellar 1573 brand slumped from a peak of over 4,000 tonnes in 2012 to a trough of about 900 tonnes in 2014.
Load more

Recommended publications
  • Making the State on the Sino-Tibetan Frontier: Chinese Expansion and Local Power in Batang, 1842-1939
    Making the State on the Sino-Tibetan Frontier: Chinese Expansion and Local Power in Batang, 1842-1939 William M. Coleman, IV Submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy in the Graduate School of Arts and Sciences Columbia University 2014 © 2013 William M. Coleman, IV All rights reserved Abstract Making the State on the Sino-Tibetan Frontier: Chinese Expansion and Local Power in Batang, 1842-1939 William M. Coleman, IV This dissertation analyzes the process of state building by Qing imperial representatives and Republican state officials in Batang, a predominantly ethnic Tibetan region located in southwestern Sichuan Province. Utilizing Chinese provincial and national level archival materials and Tibetan language works, as well as French and American missionary records and publications, it explores how Chinese state expansion evolved in response to local power and has three primary arguments. First, by the mid-nineteenth century, Batang had developed an identifiable structure of local governance in which native chieftains, monastic leaders, and imperial officials shared power and successfully fostered peace in the region for over a century. Second, the arrival of French missionaries in Batang precipitated a gradual expansion of imperial authority in the region, culminating in radical Qing military intervention that permanently altered local understandings of power. While short-lived, centrally-mandated reforms initiated soon thereafter further integrated Batang into the Qing Empire, thereby
    [Show full text]
  • IE Singapore Signs MOU with Sichuan (Chengdu) Free Trade Zone to Help Singapore Companies Gain Early Mover Advantage for Business Collaboration
    M E D I A RELEASE IE Singapore signs MOU with Sichuan (Chengdu) Free Trade Zone to help Singapore companies gain early mover advantage for business collaboration MR No.: 027/17 Singapore, Wednesday, 28 June 2017 1. In continuous efforts to strengthen Singapore-Sichuan economic ties, International Enterprise (IE) Singapore signed a Memorandum of Understanding (MOU) with the Commission of Commerce of Chengdu today to help Singapore companies expand their presence in Sichuan (Chengdu) Free Trade Zone (FTZ), specifically in Trade and Logistics, Financial and Professional Services, and Information Technology (IT) and Innovation. IE Singapore is the first foreign government agency to partner Chengdu’s Commission of Commerce on the FTZ, following China’s announcement on its third batch of seven FTZs, which includes Sichuan (Chengdu)1. 2. This MOU is the result of IE Singapore’s close consultation with the Chengdu local authorities and further enhances the strong economic relations established by the Singapore-Sichuan Trade and Investment Committee (SSTIC) co-chaired by Minister for Education (Schools) Ng Chee Meng. Building on the SSTIC’s work over the years, the MOU will explore collaboration beyond modern services, modern living and modern manufacturing. It will also benefit the Singapore-Sichuan Hi-Tech Innovation Park (SSCIP)2, which is situated in the FTZ and focuses on hi-tech and services industries. 3. Said Mr Lee Ark Boon, Chief Executive Officer (CEO), IE Singapore, who is currently leading a Singapore business delegation on a two-day mission to Chengdu, “Singapore was Chengdu’s second largest foreign investor in 2016. IE Singapore’s FTZ partnership builds on these existing close ties with Chengdu.
    [Show full text]
  • Cultural Factors in Tourism Interpretation of Leshan Giant Buddha
    English Language Teaching; Vol. 10, No. 1; 2017 ISSN 1916-4742 E-ISSN 1916-4750 Published by Canadian Center of Science and Education Cultural Factors in Tourism Interpretation of Leshan Giant Buddha Xiao Wenwen1 1 School of Foreign Languages, Leshan Normal University, Leshan, China Correspondence: Xiao Wenwen, School of Foreign Languages, Leshan Normal University, Leshan, Sichuan Province, China. Tel: 86-183-8334-0090. E-mail: [email protected] Received: November 23, 2016 Accepted: December 17, 2016 Online Published: December 19, 2016 doi: 10.5539/elt.v10n1p56 URL: http://dx.doi.org/10.5539/elt.v10n1p56 Abstract Different cultural aspects are always involved in tourism interpretation, and the process of tourism interpretation is also cross-cultural communication. If the cultural factors can be interpreted for the foreign visitors in a better way, it’s beneficial to convey the cultural connotation of the scenic spot and it can be the communication more effective. There are many scenic spots in China, to show the beautiful scenery and traditional Chinese culture to the world. Leshan Giant Buddha is one of national 5A tourist attractions in Leshan, Sichuan Province, China, and there are a lot of tourists coming here every year, especially foreign tourists. Therefore, its tourism interpretation shall be better and better. The tourism interpretation of Leshan Giant Buddha concerns many cultural factors. Based on Skopostheorie, this paper discusses how to deal with the cultural factors in guide interpretation of Leshan Grand Buddha from the following three aspects: names of scenic spots, four-character phrases and classical Chinese poetry. Keywords: Leshan Giant Buddha, tourism interpretation, skopostheorie, cultural factors, methods 1.
    [Show full text]
  • MFS® Emerging Markets Equity Fund (Class R6 Shares) Second Quarter 2021 Investment Report
    MFS® Emerging Markets Equity Fund (Class R6 Shares) Second quarter 2021 investment report Current portfolio manager Robert Lau will relinquish his portfolio management responsibilities on the portfolio, effective August 1, 2021. NOT FDIC INSURED MAY LOSE VALUE NOT A DEPOSIT Before investing, consider the fund's investment objectives, risks, charges, and expenses. For a prospectus, or summary prospectus, containing this and other information, contact MFS or view online at mfs.com. Please read it carefully. ©2021 MFS Fund Distributors, Inc., 111 Huntington Avenue, Boston, MA 02199. FOR DEALER AND INSTITUTIONAL USE ONLY. Not to be shown, quoted, or distributed to the public. PRPEQ-FEM-30-Jun-21 34135 Table of Contents Contents Page Fund Risks 1 Disciplined Investment Approach 2 Market Overview 3 Executive Summary 4 Performance 5 Attribution 6 Significant Transactions 10 Portfolio Positioning 11 Characteristics 14 Portfolio Outlook 15 Portfolio Holdings 18 Additional Disclosures 20 Country and region information contained in this report is based upon MFS classification methodology which may differ from the methodology used by individual benchmark providers. Performance and attribution results are for the fund or share class depicted and do not reflect the impact of your contributions and withdrawals. Your personal performance results may differ. Portfolio characteristics are based on equivalent exposure, which measures how a portfolio's value would change due to price changes in an asset held either directly or, in the case of a derivative contract, indirectly. The market value of the holding may differ. 0 FOR DEALER AND INSTITUTIONAL USE ONLY. - MFS Emerging Markets Equity Fund PRPEQ-FEM-30-Jun-21 Fund Risks The fund may not achieve its objective and/or you could lose money on your investment in the fund.
    [Show full text]
  • Lessons Learnt from Analysing the Causes of Casualties in the Sichuan
    https://doi.org/10.5194/nhess-2020-64 Preprint. Discussion started: 19 March 2020 c Author(s) 2020. CC BY 4.0 License. Lessons learnt from analysing the causes of casualties in the Sichuan Changning Ms 6.0 earthquake Wei Wang1,2, Hong Chen1, Xiaolin Jiang3, Lisiwen Ma1, Minhao Qu4 1Institute of Crustal Dynamics, China Earthquake Administration, Beijing 100085, China 5 2Institute of Engineering Mechanics, China Earthquake Administration, Harbin 150080, China 3Sichuan Earthquake Administration, Chengdu 610041, China 4National Earthquake Response Support Service, Beijing 100049, China Correspondence to: Hong Chen ([email protected]) Abstract. This paper summarizes the Ms 6.0 earthquake disaster that occurred in Changning, Sichuan Province, China, on 17 10 June 2019. Additionally, a description of the disaster emergency response is provided. As determined by on-site investigation and analysis, the direct causes of earthquake casualties are summarized. Among them, 66% of the casualties can be attributed to substandard seismic protection, 25% to improper earthquake risk avoidance, 6% to earthquake-induced geological disasters, and 3% to pre-existing diseases exacerbated by the earthquake. Responding to the causes of these four casualty types, we summarize 4 lessons, which are to build in accordance with seismic protection requirements; strengthen publicity and 15 education awareness of earthquake emergency evacuation and training for the population; investigate and evaluate potential geological disaster sources in the stricken area, along with conducting prevention and control; establish cooperation with health organizations, focusing on people who are older or have serious illnesses and conducting earthquake evacuation training and psychological counselling. 1 Disaster characteristics and disaster situation 20 An Ms 6.0 (Mw 5.8) earthquake struck Changning County, Yibin City, Sichuan Province, China, at 22:55:43 on 17 June 2019 (14:55:43 UTC on 17 June 2019).
    [Show full text]
  • Huanglong Scenic and Historic Interest Area (China)
    WORLD HERITAGE NOMINATION - IUCN SUMMARY 638: HUANGLONG SCENIC AND HISTORIC INTEREST AREA (CHINA) Summary prepared by WCMC/IUCN (April 1992) based on the original nomination submitted by the Ministry of Construction of the People's Republic of China. This original and ali documents presented in support of this nomination will be available for consultation at the meetings of the Bureau and the Committee. 1. LOCATION Lies in Song pan County, North-West Sichuan Province. The Huanglong subdivision is 60,000ha, 58,000ha of which is protection zone. The Mouni Guily subdivision is 1 O,OOOha, 6,000ha of which is protection zone. 2. JURIDICAL DATA Listed as a state scenic district in 1982. The site overlaps, or completely includes, Huanglongsi Nature Reserve which was established in 1983. Legal protection measures are provided under the national constitution; the Forestry Act; the Environment Law; and the Provisional Regulations Concerning the Places of Scenic and Historical lnterest. Further protection was given to the site when the Sichuan Provincial Government approved measures for the legal protection of the site, and clearly defined its boundaries in 1987. 3. IDENTIFICATION The site lies in the southern part of the Min Shan. The relief is predominantly precipitous, a particularly spectacular example being where the Fujiang River flows through the Danyun Gorge. Xuebaoding, or Snow Mountain Peak, is permanently snow-covered and features the easternmost glacier in China. Of greatest interest, geologically, is the extensive calcite deposition th at has ta ken place, notably along the 3.6km Huanglonggou (Yellow Dragon Guily) where there are several extensive a reas of travertine pools.
    [Show full text]
  • 葡萄酒 House Pouring Wine
    葡萄酒 House Pouring Wine 150ml 750ml 有气的葡萄酒 Sparkling Wine Glass Bottle SP101 Pol Remy Brut Nv (France) $12 $44 白葡萄酒 White Wine W201 Bellevie Pavillon Sauvignon Blanc (France) $11 $40 W202 Pierre Jean Colombard Chardonnay (France) $12 $44 W203 De Bortoli DB Family Selection $13 $50 Sauvignon Blanc (Australia) 红葡萄酒 Red Wine R301 Bellevie Pavillon Merlot (France) $11 $40 R302 Pierre Jean Merlot (France) $12 $44 R303 De Bortoli DB Family Selection $13 $50 Cabernet Sauvignon (Australia) 葡萄酒促销 Wine Promotion *Special deal with minimum purchase of 2 bottles house pouring wine to entitle to 15% discount off from the usual price listed above. Prices subjected to prevailing GST and Service Charge. 消费税与服务费另计。 All photos are meant for reference only. Presentation of dishes may vary without prior notice. 照片只供参考之用，摆设更改恕不作另行通知。 主酒单 Master Wine List 150ml 750ml 有气的葡萄酒 Sparkling Wine Glass Bottle SP101 Pol Remy Brut Nv (France) $12 $44 Pol Remy is produced in Burgundy, France from classic wine varieties perfect for the production of sparkling wine. It is light, fresh and fruity with aromas of apple and peach. With a delightfully easy-drinking style, it exudes aromas of creamy lemon and peach. The palate is gently off-dry and flows through to a satisfying finish. 香槟 Champagne CH102 Henri Abele Brut NV (France) $110 Pale golden colour with greenish highlights. Remarkably fine bubbles and a beautiful, persistent bead. Attractive and luscious, with hints of hawthorn and acacia blossoms as well as overtones of peach and apricot. Exceptional ripeness on the palate. Toasty, honey, and cinnamon flavours. This elegant cuvée has a full bodied, generous aftertaste.
    [Show full text]
  • The Stock Exchange of Hong Kong Limited
    NEWS RELEASE 19 November 2014 Market Highlights of Shanghai-Hong Kong Stock Connect Hong Kong Exchanges and Clearing Limited today (Wednesday) issued the following market statistics in response to media enquiries: Northbound Trading Southbound Trading Daily quota balance RMB 10,388 mil (20.1% used) RMB 10,247 mil (2.4% used) Turnover RMB 2,842 mil* HKD 496 mil** No. of orders 92,471 8,936 No. of trades 90,790 12,822 * 6.1 per cent of Northbound turnover was from Sell Trades. ** 23.2 per cent of Southbound turnover was from Sell Trades. Northbound Trading (Top 10 most actively traded stocks) Rank Stock Stock Name Buy Trade Sell Trade Turnover (RMB) Code Value (RMB) Value (RMB) (Buy trade + Sell trade) 1 601006 DAQIN RAILWAY 309,588,606 21,584,482 331,173,087 2 601318 PING AN INSURANCE 249,481,290 29,915 249,511,205 3 600104 SAIC MOTOR 211,237,657 13,070,264 224,307,921 4 601601 CHINA PACIFIC 219,301,725 22,121 219,323,846 INSURANCE 5 601398 INDUSTRIAL AND 154,570,452 11,252,004 165,822,456 COMMERCIAL BANK OF CHINA 6 600435 NORTH NAVIGATION 121,818,828 - 121,818,828 CONTROL TECHNOLOGY 7 600009 SHANGHAI 85,187,201 - 85,187,201 INTERNATIONAL AIRPORT 8 601939 CHINA 74,571,541 4,619 74,576,160 CONSTRUCTION BANK 9 600036 CHINA MERCHANTS 74,047,266 212,300 74,259,566 BANK 10 600519 KWEICHOW MOUTAI 68,888,157 5,043,004 73,931,161 …/2 香港中環港景街一號國際金融中心一期 12 樓 12/F, One International Finance Centre, 1 Harbour View Street, Central, Hong Kong 電話 Tel: + 852 2522 1122 傳真 Fax: +852 2295 3106 網址 Website: www.hkex.com.hk 電郵 E-mail: [email protected] - 2 - Southbound Trading (Top 10 most actively traded stocks via Special Participant) Rank Stock Stock Name Buy Trade Sell Trade Turnover (HKD) Code Value (HKD) Value (HKD) (Buy trade + Sell trade) 1 3998 BOSIDENG 8,017,260 12,925,420 20,942,680 INTERNATIONAL HOLDINGS LTD.
    [Show full text]
  • Chinese Liquor Making a Name on World Stage
    12 | Tuesday, July 7, 2020 CHINA DAILY From left: A worker inspects Moutai liquor labels. Rows of Moutai liquor are sealed on the production line. Staff members package Moutai bottles. PHOTOS PROVIDED TO CHINA DAILY Chinese liquor making a name on world stage Brand index reports “Moutai believes that only if it stratospheric rise of produces the best liquor in the world can it lay the firmest founda­ Moutai as company’s tion for its brand value growth.” commitment to high The enormous Chinese market provides the strongest support for quality strengthened Moutai’s growth, he stressed. “Chi­ na’s reform and opening­up and eco­ By YUAN SHENGGAO nomic rise over the past four decades have nurtured a large mar­ hinese distiller Moutai is ket with more than 1.3 billion peo­ the world’s fastest growing ple, where if your product is popular brand, according to the top and well recognized, you will cer­ 100 global brands list. It tainly gain huge space for growth. Crose 17 places from 2019 to become “In this regard, Moutai is fortu­ the 18th most valuable brand in the nate to have grown in one of the world. most dynamic markets and an open The rankings of the 2020 BrandZ and inclusive economic environ­ Top 100 Most Valuable Global ment. The former gives us the Brands were released by communi­ strength to grow, while the latter cation services group WPP and con­ provides us with the opportunity to sulting company Kantar at the end learn from outstanding peers such of June. as Coca­Cola and Diageo.” Seventeen Chinese brands made Li said: “Cultural consensus and the 2020 BrandZ top 100.
    [Show full text]
  • FTSE Publications
    2 FTSE Russell Publications 01 October 2020 FTSE Value Stocks China A Share Indicative Index Weight Data as at Closing on 30 September 2020 Index weight Index weight Index weight Constituent Country Constituent Country Constituent Country (%) (%) (%) Agricultural Bank of China (A) 4.01 CHINA Fuyao Glass Group Industries (A) 1.43 CHINA Seazen Holdings (A) 0.81 CHINA Aisino Corporation (A) 0.52 CHINA Gemdale (A) 1.37 CHINA Shanghai Fosun Pharmaceutical Group (A) 1.63 CHINA Anhui Conch Cement (A) 3.15 CHINA GoerTek (A) 2.12 CHINA Shenwan Hongyuan Group (A) 1.11 CHINA AVIC Investment Holdings (A) 0.61 CHINA Gree Electric Appliances Inc of Zhuhai (A) 7.48 CHINA Shenzhen Overseas Chinese Town Holdings 0.66 CHINA Bank of China (A) 2.23 CHINA Guangdong Haid Group (A) 1.24 CHINA (A) Bank Of Nanjing (A) 1.32 CHINA Guotai Junan Securities (A) 1.99 CHINA Sichuan Chuantou Energy (A) 0.71 CHINA Bank of Ningbo (A) 2 CHINA Hangzhou Hikvision Digital Technology (A) 3.56 CHINA Tbea (A) 0.86 CHINA Beijing Dabeinong Technology Group (A) 0.56 CHINA Henan Shuanghui Investment & Development 1.49 CHINA Tonghua Dongbao Medicines(A) 0.59 CHINA China Construction Bank (A) 1.83 CHINA (A) Weichai Power (A) 2.09 CHINA China Life Insurance (A) 2.14 CHINA Hengtong Optic-Electric (A) 0.59 CHINA Wuliangye Yibin (A) 9.84 CHINA China Merchants Shekou Industrial Zone 1.03 CHINA Industrial and Commercial Bank of China (A) 3.5 CHINA XCMG Construction Machinery (A) 0.73 CHINA Holdings (A) Inner Mongolia Yili Industrial(A) 6.32 CHINA Xinjiang Goldwind Science&Technology (A) 0.74
    [Show full text]
  • Luzhou Laojiao Co., Ltd. 2018 Annual Report April 2019
    2018 Annual Report of Luzhou Laojiao Co.,Ltd. Luzhou Laojiao Co., Ltd. 2018 Annual Report April 2019 1 2018 Annual Report of Luzhou Laojiao Co.,Ltd. Section I Important Statements, Contents and Definitions The Board of Directors, Board of Supervisors, directors, supervisors and senior management guarantee that the information presented in this report is free of any false records, misleading statements or material omissions, and shall Individually and together be legally liable for truthfulness, accuracy and completeness of its contents. Mr. Liu Miao, responsible person for the Company, Ms. Xie Hong, responsible person for accounting work and Mr. Yan Li, responsible person for the Company’s financial affairs (Accounting Supervisor) have warranted that the financial statements in this report are true and complete. Other directors attended the board meeting to deliberate this report by themselves except the following directors. Name of directors who did not Position of directors who did not Reason for not attending Name of attend the meeting in person attend the meeting in person the meeting in person deputies Liu Miao Chairman of the Board work Lin Feng Shen Caihong Director work Jiang Yuhui Affected by risks, uncertainties and assumptions, the forward-looking statements concerning business objectives and future plans made in this report based on the subjective assumptions and judgments of the future policies and economic conditions may be significantly different from the actual results. Such statements shall not be considered as virtual promises of the Company to investors, and the investors and relevant persons shall maintain adequate risk awareness and shall understand the differences between plans, forecasts and commitments.
    [Show full text]
  • China Consumer Close-Up
    January 13, 2015 The Asian Consumer: A new series Equity Research China Consumer Close-up The who, what and why of China’s true consumer class Few investing challenges have proven more elusive than understanding the Chinese consumer. Efforts to translate the promise of an emerging middle class into steady corporate earnings have been uneven. In the first of a new series on the Asian consumer, we seek to strip the problem back to the basics: Who are the consumers with spending power, what drives their consumption and how will that shift over time? The result is a new approach that yields surprising results. Joshua Lu Goldman Sachs does and seeks to do business with +852-2978-1024 [email protected] companies covered in its research reports. As a result, Goldman Sachs (Asia) L.L.C. investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Sho Kawano Investors should consider this report as only a single factor +81(3)6437-9905 [email protected] Goldman Sachs Japan Co., Ltd. in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Becky Lu Appendix, or go to www.gs.com/research/hedge.html. +852-2978-0953 [email protected] Analysts employed by non- US affiliates are not registered/ Goldman Sachs (Asia) L.L.C. qualified as research analysts with FINRA in the U.S. January 13, 2015 Asia Pacific: Retail Table of contents PM Summary: A holistic view of the Asian consumer 3 China’s cohort in a regional context (a preview of India and Indonesia) 8 What they are buying and what they will buy next: Tracking 7 consumption desires 11 Seven consumption desires in focus 14 1.
    [Show full text]