0652 GMT - China spirits' premiumization trend favors strong brands, Goldman Sachs says as it starts coverage of the sector. The super-premium spirits segment is expected to remain a growth engine, with estimated sales CAGR of 15% over 2021-2025, driven by a roughly 10% volume increase and an around 4% CAGR in average selling prices. GS rates Kweichow Moutai, Wuliangye Yibin, Anhui Gujing Distillery and Jiangsu Yanghe Brewery JSC at buy. It notes good visibility on long-term earnings growth driven by strong brands, improving execution in product upgrades, and channel management. GS has a neutral rating on Luzhou Laojiao and Shanxi Xinghuacun Fen Wine Factory. (ronnie.harui@wsj.com)
China Spirits' Premiumization Favors Strong Brands -- Market Talk
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