After the stock price hit a new low, Moutai finally couldn't help but make a move, announcing a buyback of up to 6 billion yuan of shares.

The buyback price shall not exceed 1795.78 yuan per share.

Tonight, Moutai announced that the company plans to repurchase shares through centralized competitive bidding trading at a buyback price not exceeding 1795.78 yuan per share, with an amount ranging from 3 billion yuan to 6 billion yuan, to be used for cancellation and reduction of registered capital.

Moutai expects that the number of shares repurchased this time will be approximately 1.6706 million shares to 3.3412 million shares, accounting for about 0.13% to 0.27% of the total issued share capital.

It is worth noting that this is the first implementation of a cancellation-style buyback by Kweichow Moutai since its listing 23 years ago.

In addition, Kweichow Moutai's announcement also mentioned that the major shareholders currently have no plans to reduce their holdings, and if there are future plans to increase their holdings, they will promptly fulfill their disclosure obligations in accordance with relevant regulations.

Recently, the stock price of Kweichow Moutai has been continuously declining, hitting new lows repeatedly, and has fallen by over 23% since the beginning of the year.

Yesterday, the stock price of Kweichow Moutai broke below the 1250 level, touching a low of 1245.83 yuan per share, hitting a new low since May 2020.

Today, the stock price of Kweichow Moutai also fluctuated downwards during the day, rebounded slightly in the afternoon, and finally rose by 0.23%, closing at 1263.92 yuan per share, with a total market cap of 1.59 trillion yuan, ranking fifth in the A-share market.

Based on today's closing price, Kweichow Moutai's repurchase has a gap of 42.08% from the highest target price set.

During the semi-annual performance briefing on September 9, Kweichow Moutai stated that it would conduct systematic research on different market value management measures based on the stock market situation and the company's actual situation, and would timely announce any relevant plans in accordance with relevant regulations.

It's only been 11 days, and the repurchase plan has been officially announced, showing a great deal of attention to responding to investors' concerns.

Some analysts pointed out that Kweichow Moutai's repurchase move undoubtedly helps boost market confidence, but sustained long-term stock price growth still depends on the company's product capability, distribution capacity, and brand strength.

Demand is still an issue.

Currently, the domestic macroeconomy is weak, the phenomenon of consumer downgrading is obvious, and the market demand for Moutai is also affected, with wholesale prices continuing to decline.

Today, several scalpers in Beijing have stated that they are no longer collecting Moutai with the zodiac sign of the Dragon year, stating that its wholesale price has fallen below the sale price (2499 yuan/bottle), causing concern among liquor merchants about the future price trend of Moutai.

According to the latest wholesale reference prices disclosed today, the retail price of 2024 Feitian Moutai is reported at 2365 yuan/bottle, unchanged from the previous day; the original box of 2024 Feitian Moutai is reported at 2470 yuan/bottle, down another 20 yuan from the previous day.

Guojun Securities believes that the main contradiction in the investment of the baijiu sector lies in the rebalancing of supply and demand and the reconstruction of industry growth expectations. In the next phase, attention should be paid to destocking, wholesale prices, and corporate strategies.

Sinolink Securities recommends focusing on the value allocation of the baijiu sector:

Firstly, after the valuation has fallen back, the dividend yield of many liquor companies for 2024 has reached 4% or more, and in the medium term, the expected level of dividends is generally expected to improve, with limited downward revisions in dragon head EPS expectations. Scale-type dealers have accumulated deep experience during the prosperity cycle from 2016 to the present, with better risk resistance than in the previous cycle.
Secondly, the sector's holdings are expected to continue to decline to relatively low levels. Recommendations include focusing on the leading liquor companies with good feedback expectations, such as high-end liquors, the top liquor of the baijiu sector Shanxi Xinghuacun Fen Wine Factory, leading liquor companies in various regions, and paying attention to the next high-end advantage under the logic of pro-cyclical reversal.