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Wuliangye Yibin Co Ltd Class A 000858

Morningstar Rating
CNY 128.95 −1.64 (1.26%)
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Company Report

Wuliangye Sees Resilient Demand, Supporting Preference for Premium Baijiu

Wuliangye Yibin is the second-largest distiller in the premium Chinese baijiu market. Its core product, flagship 52-degree Wuliangye, is widely known as the best strong-aroma liquor, which is a type of distilled liquor that is sweet-tasting, smooth in texture, and mellow, with a gentle, lasting fragrance. The liquor is produced in a unique natural ecological environment, with suitable climate and microbial environment for fermentation. Its premium quality and over 650 years of history have given the company strong pricing power, reflected in its superior profitability and returns on invested capital among its peers.

Price vs Fair Value

000858 is trading at a 787% premium.
Price
CNY 128.95
Fair Value
CNY 899.00
Uncertainty
High
1-Star Price
CNY 343.40
5-Star Price
CNY 629.70
Economic Moat
Dpzy
Capital Allocation
Vspy

Bulls Say, Bears Say

Bulls

Wuliangye is widely known as the best strong-aroma baijiu producer in China. Its strong brand and extensive distribution network should help the firm succeed in its expansion into the high-end market.

Bears

The baijiu sector is slightly more cyclical than beer, particularly in the premium segment and above. An economic slowdown could further weaken the demand for premium baijiu beverages, including Wuliangye.

Is it the right time to buy, sell, or hold?
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Trading Information

Previous Close Price
CNY 130.59
Day Range
CNY 128.14131.97
52-Week Range
CNY 122.56188.57
Bid/Ask
CNY 128.95 / CNY 128.96
Market Cap
CNY 500.53 Bil
Volume/Avg
13.9 Mil / 15.6 Mil

Key Statistics

Price/Earnings (Normalized)
15.78
Price/Sales
5.76
Dividend Yield (Trailing)
2.93%
Dividend Yield (Forward)
Total Yield
2.93%

Company Profile

Wuliangye Yibin is China’s second-largest baijiu producer by revenue, with sales of CNY 83 billion in 2023 compared with CNY 150 billion for Moutai. Founded in the 1950s, Wuliangye is located in Yibin, Sichuan province, in southwest China. Its core product, 52-degree Wuliangye, is widely known as the best rice-flavored baijiu in the market. The high-quality products, extensive history and brand strength have led to strong pricing power, allowing the company to enjoy high retail prices and profit margins.
Sector
Consumer Defensive
Industry
Beverages - Wineries & Distilleries
Stock Style Box
Large Core
Total Number of Employees
25,118

Competitors

Valuation

Metric
000858
002304
DGE
Price/Earnings (Normalized)
15.7811.5017.33
Price/Book Value
3.492.047.33
Price/Sales
5.763.443.45
Price/Cash Flow
15.3012.3314.59
Price/Earnings
000858
002304
DGE

Financial Strength

Metric
000858
002304
DGE
Quick Ratio
4.442.690.65
Current Ratio
4.953.991.58
Interest Coverage
2,546.772,197.025.60
Quick Ratio
000858
002304
DGE

Profitability

Metric
000858
002304
DGE
Return on Assets (Normalized)
19.60%15.30%9.16%
Return on Equity (Normalized)
24.83%19.29%42.99%
Return on Invested Capital (Normalized)
22.83%18.20%14.78%
Return on Assets
000858
002304
DGE
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