KWEICHOW MOUTAI(SH:600519) Sou Hu Cai Jing·2025-04-10 08:51Core Viewpoint - Guizhou Moutai is facing challenges in its product lines, particularly with zodiac liquor and ice cream, leading to a significant decline in stock prices and prompting multiple share buybacks to boost market confidence [1][4]. Share Buyback and Capital Reduction - As of April 8, 2025, Guizhou Moutai has repurchased 1.3159 million shares, accounting for 0.1048% of its total share capital, with a total expenditure of 1.948 billion yuan, at prices ranging from 1417.01 yuan to 1584.06 yuan per share [2]. - The company plans to repurchase between 3 billion and 6 billion yuan worth of shares for capital reduction, with the proposal expected to be approved at the shareholder meeting on November 27, 2024 [2][3]. - The buyback aims to enhance capital efficiency by releasing idle funds for daily operations or production expansion, while also reducing the number of circulating shares to improve earnings per share and stock price [3]. Stock Price Decline - As of April 9, 2025, Guizhou Moutai's stock closed at 1541.04 yuan per share, down approximately 18% from its peak of 1880.66 yuan on October 8, 2023, and about 64% from its all-time high of 2388.76 yuan on February 18, 2021 [4]. - The decline in stock price is attributed to the waning popularity of "sauce-flavored liquor" and the price inversion of its main product, Moutai 1935 [4]. Moutai 1935 Pricing Issues - Moutai 1935, launched at a market price of 798 yuan per bottle, initially saw prices soar to 1800 yuan but has since dropped to a range of 800 to 1000 yuan, even falling below the factory price [4][5]. - As of April 9, 2025, the price of Moutai 1935 is reported at 750 yuan per bottle, a decrease of about 36% from its retail guidance price [5]. Zodiac Liquor and Ice Cream Challenges - The latest zodiac liquor, "Snake Moutai," has not performed well in the market, with prices dropping from an initial 2499 yuan to 2490 yuan per bottle by April 9, 2025, failing to replicate the hype seen with previous zodiac releases [7]. - The ice cream segment, launched to attract younger consumers, has faced setbacks, leading to the dissolution of its dedicated business unit, although products continue to be sold through other channels [9].