KWEICHOW MOUTAI(SH:600519) CSC SECURITIES (HK) LTD·2025-05-07 04:25Investment Rating - The investment rating for the company is "Trading Buy" with a target price of 1674 CNY, indicating a potential upside of 8% from the current price of 1550.20 CNY [1][5]. Core Insights - The company reported a Q1 2025 revenue of 51.44 billion CNY, a year-on-year increase of 10.7%, and a net profit of 26.85 billion CNY, up 11.6% year-on-year, aligning with expectations [5]. - The revenue growth for the flagship product, Moutai liquor, was 43.56 billion CNY, reflecting a 9.7% increase, while the series liquor segment saw a revenue of 7.02 billion CNY, up 18.3% [7]. - The company is focusing on optimizing its distributor assessment to enhance market engagement and service quality, which is expected to strengthen its competitive position [7]. Financial Summary - The company’s net profit is projected to reach 95.36 billion CNY in 2025, with a year-on-year growth of 10.6%, and further growth is expected to continue through 2027 [6][7]. - Earnings per share (EPS) are forecasted to be 75.91 CNY for 2025, with a price-to-earnings (P/E) ratio of 20 [6][7]. - The company has maintained a stable gross margin of 92.1%, with a slight decrease of 0.6 percentage points year-on-year [7]. Market Position - The company’s market capitalization is approximately 194.74 billion CNY, with major shareholders including China Guizhou Moutai Distillery (Group) Co., Ltd., holding 54.07% [1]. - Institutional investors hold 7.1% of the circulating A-shares, while general corporations account for 70.7% [2].