Glonghui, July 3 | Dongwu Securities Research Report pointed out that since May, the price of Flying Moutai liquor has continued to fall rapidly, causing focused attention and great concern. The market lacks confidence in whether Kweichow Moutai (600519.SH) can take effective price stabilization measures, and there is insufficient confidence in the stability of medium- to long-term demand. Recently, on the one hand, the company's management strengthened market research and communication and guidance with dealers, and prices rebounded steadily in response (the current batch price rebounded about 250 yuan from June's low price), and on the other hand, intensified interaction with investors, listened to investors' voices and suggestions, and responded positively to market concerns, demonstrating leading responsibility. The bank believes that under the premise of the industry's perception of the adjustment period, the moderate price correction of Maotai liquor can release price and operating risks. The company will respond to the domestic macroeconomic cycle with measures such as expanding demand from emerging industries, enhancing supply and demand adaptation and increasing internationalization to strengthen channel control and precise marketing to balance prices, and dilute the weakening “investment demand” and the intensification of fluctuations caused by random scalper prices. Compared with the previous adjustment period, Maotai's core competitiveness has been strengthened, the product matrix is more complete, the channels are more diverse, the moat for consumer value and channel profit is thicker and wider, and it is more resilient to withstand the cycle. From 2 consecutive years of special dividends to more active investor interaction, it has demonstrated the consistency of interests. Whether in the short to medium to long term, the company's market value management toolbox is still quite full, balances volume and price, maintains a reasonable level of growth, and high dividends, which are easily recognized by investors. The valuation is at a historically low level for the company, maintaining a “buy” rating.