Kweichow Moutai (600519.SS)

Research evidence excerpt

Kweichow Moutai (600519.SS)

Flash |

19 Jul 2026 18:29:37 ET │ 12 pages

Positive Surprise from Second Round of ASP Hikes in 2026

CITI'S TAKE

Buy After market close of Friday (July 17), Moutai surprisingly announced its lift

of both ex-factory wholesale ASP (by Rmb100 or 7.9%, to Rmb1,369) and Price (17 Jul 26 15:00) Rmb1,253.000

direct retail ASP (by Rmb100 or 6.5%, to Rmb1,639) for Feitian (53%, Target price Rmb1,788.650

500ml) effective from July 18. This second round of ASP hikes (which Expected share price 42.7% features the same amount of lift for both ex-factory ASP and direct retail return

ASP) is different from the first round of hikes on March 31, which featured Expected dividend yield 4.2%

more lift of ex-factory ASP (by Rmb100) than direct retail ASP (by Rmb40). Expected total return 47.0%

Furthermore, its post-hike direct retail ASP (Rmb1,639) is close to its

Market Cap Rmb1,566,352M recent market-oriented first-tier wholesale ASP (~Rmb1,640, Fig. 1),

US$231,391M amplifying Moutai’s intention to further lift sales mix towards DTC

channels and reduce speculation by unauthorized wholesalers. We are

positive on Moutai’s efforts to close the gap between ex-factory ASP and

market price and continue to prefer Moutai (Buy) to Wuliangye (Sell). Xiaopo Wei, CFAAC

+852-2501-2472

Closing the gap btw ex-factory ASP & market price — Per its announcement, the xiaopo.wei@citi.com

ASP hike was based on the principles of "following market trends, maintaining Vincent Young

relative price stability, matching supply with the demand and balancing sales +852-2501-2738

volume with the prices." Since Moutai's announcement of “Market-oriented 2026E vincent.young@citi.com

Operating Plan” with distribution channel reform this January (see Citi’s Jan 13 note: