Jiugui Liquor Co Ltd Class A
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
¥13.00 | Frxqsz | Mvlhdkx |
Jiugui Continues to See Sales Pressure in 2024 as Demand Headwind Persists
Business Strategy and Outlook
Jiugui Liquor has differentiated itself from China’s other leading baijiu brands by producing Fuyu-flavored baijiu, which enjoys strong cultural links with minority groups in its home in western Hunan province, and has a unique brewing technique and aroma. Its established brand is now synonymous with Fuyu baijiu, providing the group with pricing power, making it one of the key subpremium baijiu brands in China. Expanding its distribution network, and increasing investment in marketing and branding, have also fortressed its competitiveness—which should allow it to generate economic profits well into the future.