The wholesale price of Moutai has continued its decline, with the price of Flying Moutai bottles dropping below 2,270 yuan per bottle as of September 22. Notably, as of 3:00 PM on September 24, Moutai’s stock price had increased by nearly 9%, with trading volume exceeding 13 billion yuan.

Declining Wholesale Prices and Rising Stock Prices

Recently, the wholesale price of Guizhou Moutai has exhibited a downward trend, thereby attracting significant market attention. According to the latest data, the wholesale price of Flying Moutai bottles fell to 2,270 yuan on September 22, representing a decrease of 30 yuan from previous prices. This decline is not unprecedented; indeed, similar trends were observed around the Dragon Boat Festival earlier this year.

The decrease in wholesale prices for Guizhou Moutai may be linked to weak market demand. Currently, the overall performance of the liquor market has been lackluster, particularly during traditional consumption peaks such as the Mid-Autumn Festival, during which anticipated demand growth has not materialized. Additionally, analyses suggest that several factors—including the peak in real estate prices, declining household incomes, and high local government debt—may have contributed to weakening domestic demand, thereby impacting Moutai’s wholesale prices.

Despite the decrease in wholesale prices, Guizhou Moutai's stock price has demonstrated an upward trend. In recent trading days, Moutai's stock has shown significant increases. As of 3:00 PM on September 24, the stock price had risen by nearly 9%, restoring its market capitalization above 1.7 trillion yuan, with trading volume exceeding 13 billion yuan, thereby setting a new annual high for trading volume.

On September 20, Guizhou Moutai announced a share buyback plan involving an investment of 3 to 6 billion yuan, marking the company’s first share cancellation buyback since its listing 23 years ago. The market generally perceives this initiative as likely to have a positive impact on the stock price, thereby enhancing investor confidence. Specifically, the buyback and subsequent cancellation of shares can reduce the number of circulating shares, thereby increasing earnings per share for shareholders while maintaining the company’s profitability.

Moreover, Guizhou Moutai’s fundamentals remain strong. As a representative of high-end liquor, Moutai continues to exhibit robust demand characteristics within its price range. Sales performance has been encouraging, characterized by significant spikes in demand during festive periods and a noticeable acceleration in inventory turnover. In some regions, Flying Moutai is even in short supply, which surpasses overall market expectations.

Looking ahead, the wholesale price of Moutai may be influenced by potential price stabilization measures that the company might implement. Should prices continue to decline, Guizhou Moutai may take action to stabilize market prices in order to protect its brand value and market position. Additionally, with improvements in the macro consumption environment, the liquor industry is expected to emerge from this adjustment cycle, potentially boosting Moutai's sales performance and revenue growth.

In summary, although Moutai's wholesale prices face downward pressure in the short term, the company's long-term investment value remains intact. With its strong brand presence, diverse product portfolio, and solid consumer base, Guizhou Moutai is well-positioned to maintain its leadership in the high-end liquor market in the future.

How to Invest Using uSMART

After logging into the uSMART HK app, click on the "Search" option located at the top right of the page. Enter the stock code, such as " 貴州茅台 " to access the details page where you can review transaction details and historical trends. Then, click on the "Trade" option at the bottom right corner, select the "Buy/Sell" function, and finally fill in your transaction conditions before submitting your order.