Guizhou Moutai: Stock and Liquor Prices Decline, Initiates Share Repurchase

K-line chart, characteristic data, capital flow, announcements, individual stock calendar, core themes. Latest price: 1558.85. Change in price: 6.65. Change in percentage: 0.43%. Trading volume: 27,700 lots. Transaction amount: 4.33 billion. Turnover rate: 0.22%. Price-earnings ratio: 24.14. Total market value: 1958.2 billion. Query the stock market for this stock? Real-time capital flow? In-depth data revelation? Enter the Guizhou Moutai stock bar. Guizhou Moutai capital flow related stocks: Rock Co., Ltd. (14.91, 10.04%). Weilong Co., Ltd. (13.01, 8.96%). Mogao Co., Ltd. (7.59, 7.20%). Huiquan Beer (10.8, 4.45%). Related sectors: Guizhou sector (2.35%). State-owned enterprise reform (2.10%). E-commerce concept (2.07%). Institutions hold heavy positions (2.02%).
Recently, the stock price and liquor price of Guizhou Moutai have fallen, attracting widespread market attention. From last Mid-Autumn Festival to this Mid-Autumn Festival, Guizhou Moutai’s stock price has fallen by 28.06%, and its market value has evaporated by 671.6 billion yuan. At the same time, the market wholesale prices of original box and loose bottle Feitian Moutai have also fallen, down 20.


3% and 14.8% respectively year-on-year. In the face of the decline in stock price and liquor price, Guizhou Moutai has launched “market value management”. The announcement stated that it plans to invest 3 to 6 billion yuan of its own funds to repurchase shares for cancellation in order to stabilize market confidence. Guizhou Moutai’s stock price has hit a new low in nearly two years. “Golden September and Silver October” is the traditional peak sales season for liquor.


From last Mid-Autumn Festival to now, Guizhou Moutai’s stock price and liquor price have shown a “double-line decline” trend. In terms of stock price, as of September 20, Guizhou Moutai closed at 1263.92 yuan per share, and the latest market value is 1.59 trillion yuan. Since the trading day before Mid-Autumn Festival in 2023, Guizhou Moutai’s stock price has fallen by 28.06%, and its market value has evaporated by 671.


6 billion yuan. Looking back at February 2021, Guizhou Moutai hit an all-time high. The intraday highest price exceeded 2400 yuan per share, and the market value exceeded 3.2 trillion yuan. Now the market value has been halved. At the same time, the market price of Moutai liquor has also declined significantly. The latest wholesale reference price shows that on September 21, the original box of 2024 Feitian Moutai was reported at 2390 yuan per bottle, a further drop of 80 yuan compared to the previous day; the loose bottle of 2024 Feitian Moutai was reported at 2300 yuan per bottle, a further drop of 65 yuan compared to the previous day.


Compared to the highs around Mid-Autumn Festival in 2023, the market wholesale prices of original box and loose bottle Feitian Moutai have decreased by 610 yuan per bottle and 400 yuan per bottle respectively, with declines of 20.3% and 14.8% respectively.



Guizhou Moutai conducts share repurchase for the first time in 23 years since its listing. In the face of such a market situation, Guizhou Moutai responded quickly and announced the initiation of “market value management”.
On the evening of September 20th, Kweichow Moutai announced its intention to invest between 3 billion and 6 billion yuan of its own funds to repurchase shares, which will then be canceled.


Specifically, the number of shares to be repurchased ranges from 1.67 million to 3.34 million, accounting for approximately 0.133% to 0.266% of the total shares. The repurchase price per share will not exceed 1795.78 yuan (inclusive), which is not higher than 130% of the average trading price of the company’s stock in the 30 trading days before the board of directors’ resolution to repurchase shares.


The repurchase period will last for 12 months from the date the company’s shareholders’ meeting approves the repurchase plan. This marks the first time Kweichow Moutai has repurchased shares since its listing 23 years ago, and upon completion of this plan, it is expected to become the ‘King of A-share Repurchase’. Data shows that as of June 30th of this year, Kweichow Moutai’s cash and cash equivalents balance was 145.


27 billion yuan, and the maximum repurchase funds of 6 billion yuan account for only 4.13% of its cash and cash equivalents. Although the maximum repurchase of 6 billion yuan is a significant move in the market, it seems insignificant compared to Kweichow Moutai’s market value of 1.59 trillion yuan.



The effect of stock repurchases by various liquor companies has been underwhelming. Data indicates that from January 1st to September 22nd, 2024, five liquor companies conducted stock repurchases, namely Jin Hui Liquor, Shede Alcohol Industry, Shuijingfang, Kouzi Jiao, and Luzhou Laojiao. Among them, Jin Hui Liquor had the largest repurchase amount of 1.89 billion yuan. Shede Alcohol Industry, Shuijingfang, and Kouzi Jiao repurposed amounts of 130 million yuan, 85.


09 million yuan, and 45.67 million yuan, respectively. Luzhou Laojiao had the smallest repurchase amount of 1.81 million yuan. Currently, the effects are not apparent. This year, Jin Hui Liquor’s stock price has fallen by 32.40%, Shede Alcohol Industry by 55.06%, Shuijingfang by 41.41%, Kouzi Jiao by 16.16%, and Luzhou Laojiao by 41.75%.



Kweichow Moutai’s Market Value Management Actions Spark Debate. Market reactions to Kweichow Moutai’s move have been mixed. Some analysts believe that repurchasing and canceling shares is an effective means of market value management, aimed at enhancing the value per share by reducing the number of outstanding shares. It is anticipated that the cancellation of repurchased shares will slightly increase the company’s earnings per share.


‘In the current context where some liquor enterprises have outstanding value-to-price ratios but face relatively weak industry demand, as the industry leader, Moutai’s market value management move has a certain industry demonstration effect.’ However, there are also opinions that in the current market environment, relying solely on share repurchases may not fundamentally reverse the trend of falling stock prices.


The company also needs to focus on improving performance and optimizing governance structures to truly achieve stable market value growth.



Related reports. Guizhou Maotai has made its first move to repurchase. Are listed companies taking actions to reward shareholders? Great news on the weekend! Guizhou Maotai’s first large-scale repurchase. Can it drive a rebound in A-shares? Here comes the analysis.



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