The market value of the four leading liquor stocks broke through one trillion yuan, and the stock price of Maotai reached 473.04 yuan.

　　There are 19 liquor stocks in A shares, with a total market value of over 1 trillion as of May 5 this year. Who would have thought that after 26 trading days, the market value of only four leading stocks has exceeded one trillion. Yesterday, the market value of Kweichow Moutai was 594.2 billion, once again exceeding the market value of China Life Insurance of 593 billion.

　　Yesterday, the growth rate of the wine-making sector slowed down, only rising by 0.4%, ranking fourth from the bottom in the industry sector, but the market value of its four leading stocks has exceeded one trillion. Beijing Youth Daily reporter noted that as of yesterday’s close, the market values of Kweichow Moutai, Wuliangye, Yanghe and LU ZHOU LAO JIAO CO.,LTD were 594.232 billion, 207.601 billion, 136.91 billion and 71.347 billion respectively, with a total market value of 1,010.09 billion, approaching the total market value of China Agricultural Bank of China of 1,026.2 billion yuan.

　　There are 19 liquor stocks in A shares, with a total market value of over 1 trillion as of May 5 this year. Who would have thought that after 26 trading days, the market value of only four leading stocks has exceeded one trillion. It is also known that the total output of A-share liquor companies in 2016 was 1,354,800 tons, accounting for 10% of the national output; The total revenue related to liquor of these 19 listed liquor enterprises was 120.2 billion, and the net profit was 36.455 billion, with an average liquor gross profit margin of 67.07% and an average net profit margin of 18.57%.

　　It is worth mentioning that the share price of Kweichow Moutai hit a new closing high yesterday, reaching 473.04 yuan, and its market value not only surpassed Sinopec, but also surpassed China Life again. Yesterday, the market value of China Life was 593 billion yuan. This is the second time that the market value of Kweichow Moutai has surpassed that of China Life Insurance. As early as April 18th this year, the intraday share price of Kweichow Moutai broke through 400 yuan and reached a record high. At the close, Maotai closed at 404.65 yuan, with a stock increase of 2.24%. Its market value reached 508.3 billion yuan, surpassing China Life Insurance, and its A shares ranked sixth. Based on the closing price on April 18th, the market value of China Life was 500.806 billion yuan, while that of Maotai was 508.320 billion yuan, surpassing that of China Life.

　　On June 10th, Sinopec, which refined hundreds of millions of tons of oil, was defeated by Maotai, which brewed tens of thousands of tons of wine. As of the close of the day, Kweichow Moutai, with a market value of 585.062 billion yuan, surpassed China Petrochemical’s A-share market value of 583.858 billion yuan, ranking sixth in the total A-share market value.

　　On the occasion of the second anniversary of the stock market crash in 2015, the market value of Maotai was only in the early 200 billion. Since then, it has started the "runaway" mode: in 2016, there were only three negative lines on the monthly line, and in 2017, the monthly line was all positive. In July 2016, the stock price broke through 300 yuan with a market value of 394.5 billion yuan; After a small finishing, Kweichow Moutai continued to move upwards, driving the wine-making sector to attack across the board. On April 20th this year, Kweichow Moutai’s share price rose to the top of 400 yuan in one fell swoop, becoming the highest-priced A-share stock, with a market value of about half of Guizhou’s GDP, surpassing Diageo, the world’s veteran champion of spirits, with a market value of 509.68 billion yuan, and becoming the world’s most valuable winery.

　　The market believes that the recent surge in the market value of Maotai is not unrelated to its large-scale operation of Maotai College. Maotai College, sponsored by Guizhou, China Maotai Distillery (Group) Co., Ltd., is a non-profit private college at the undergraduate level, which is positioned as an application-oriented college. The number of full-time students is tentatively set at 5,000, and the first five undergraduate majors are brewing engineering, grape and wine engineering, food quality and safety, resource recycling science and engineering and marketing.

　　Although Kweichow Moutai has hit record highs, brokers still give it a higher target price and rating. Pacific Securities’ neutral expectation gives Maotai 25 times PE, with a corresponding market value of 860 billion and a corresponding stock price of 685 yuan. TF Securities gave Maotai a 27-fold valuation in 2018 and raised its 12-month target price to 615 yuan; China Merchants Securities maintains its target price of 500 yuan according to 22 times PE in 2018 and continues to strongly recommend it; On the other hand, Shen Wanhongyuan slightly raised its profit forecast based on Maotai’s first quarterly report exceeding expectations, with a one-year target price of 520 yuan, which is 24 times the performance of the 2018 report.

　　Text/reporter Liu Shenliang