with unprecedented market value management, moutai is following the path of global giants to increase its value
2024-09-25
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kweichow moutai has achieved the highest increase in the past two years.
on september 24, kweichow moutai led the entire liquor sector, closing at 1,372.6 yuan per share, up 8.8%. the stock price rose more than the market, and the increase hit a new high in the past two years.
behind the soaring stock price, kweichow moutai’s market value management “actions” seem to be more frequent than in the past.
recently, kweichow moutai's various "big moves" in the capital market have surprised all parties. from the previous determination that the total annual dividend from 2024 to 2026 will not be less than 75% of the net profit attributable to the parent company in that year, and two dividends within the year; to the recent proposal for the first time to conduct a cancellation-style repurchase with a maximum of 6 billion yuan... this series of actions is very rare not only in the liquor industry, but also in the a-share market.
in fact, this series of "unprecedented" measures by kweichow moutai shows that the company is making full use of the "tools" of market value management to enhance its value, which is also the path taken by many global giants to enhance their value.
it is understood that among this series of "visible" and "long-term" measures, kweichow moutai is working hard to enhance shareholders' sense of gain, create conditions that will allow investors to pay attention and invest in the long term, and through the "leading" responsibility highlighted during the industry adjustment period, the company's value will steadily increase over time.
performance, repurchases and dividends increase the value of global giants
kweichow moutai is on the same value-added path
for kweichow moutai, good market value management has been a frequently mentioned keyword in recent years. it is worth noting that some global giants have greatly increased their value through long-term market value management, and the basic points and priorities of their market value management are to rely on performance support, increase returns and repurchase to increase value.
take the global retail giant walmart as an example. from 1992 to 2023, the company's cumulative net profit was us$335.3 billion, but the cumulative cash dividends and stock repurchases cost us$263.2 billion, including us$117.1 billion in cash dividends and us$146.1 billion in stock repurchases, accounting for a total of 79% of the total net profit. this has allowed walmart's stock value to continue to increase, and its stock price has nearly doubled 22 times in the past 21 years.
another company that frequently repurchases shares and pays large dividends is apple. from 2012 to 2023, the company's cumulative dividends reached us$132 billion, and the total amount of stock repurchases during the same period reached us$572 billion. these two measures have allowed apple's total market value to exceed us$3 trillion (2023 data). in the second fiscal quarter of this year, apple also proposed a us$110 billion repurchase plan to further enhance the company's investment value.
in the consumer sector, beverage giant coca-cola has also increased its value through a variety of long-term means. in addition to maintaining the leading position of its main brand "coca-cola" in the global market and continuously repurchasing shares since 1984, the company has paid dividends to shareholders every quarter since 2000. in 23 years, coca-cola's annual dividend has increased from us$0.34 per share to us$1.84 per share. it is worth noting that under long-term market value management, "stock god" buffett has been firmly holding coca-cola shares since 1988 and has held them to this day.
with the long-term use of performance "basic plate" and "buyback and dividend" measures, the above-mentioned global giants have actually improved their value and status. the industry believes that the giants have the market position of their own brands, certainty of performance growth and good financial conditions, which are the basis for them to do a good job in market value management.
similar to the above-mentioned global giants, kweichow moutai already has the conditions and confidence to actively use "market value management tools".
the performance "basic plate" is stable, and market value management tools are actively used
moutai has formed a stable expectation
judging from the data, kweichow moutai's performance and financial data and other "basic plates" are "well known" to all walks of life: since its listing, the performance growth rate has been steady and there has been no losses. in the past three years, the company's annual total revenue has remained stable at more than 100 billion yuan, while its revenue and net profit have maintained double-digit growth every quarter and have repeatedly set new records.
at the same time, kweichow moutai's cash reserves have been over 100 billion yuan for six consecutive years (calculated in 2018), which is also the basis for the company to actively adopt market value management measures.
industry analysts believe that the high-quality and stable "basic plate" not only helps kweichow moutai "cross" the liquor cycle, but also gives the company the "confidence" to increase the company's value and large dividends through continuous repurchases, thereby making shareholders and other investors more confident in holding moutai for the long term. in recent years, after kweichow moutai carried out market value management, the company is bringing substantial benefits to itself and the market in the short term, and in the long run it is maintaining "upward growth" and working hard to increase value in the future.
it is understood that many brokerages have expressed optimism about moutai's recent active use of market value management measures, including cicc, guotai securities and soochow securities. while giving a "buy" rating to kweichow moutai, they also predicted that by the end of 2024 and even in the next three years, kweichow moutai's dividend yield will continue to increase to 4% or higher.
for a-shares, market value management is a "systematic project" that requires long-term construction. it is understood that the value formation and growth of kweichow moutai is related to its guarantee of common growth of the interests of multiple parties and the maximization of value.
for example, in terms of shareholder returns, as of june 30 this year, kweichow moutai has distributed a total of 271.441 billion yuan in cash dividends, which is 135.85 times the net amount of funds raised in its ipo. the continued "large-scale" dividend returns in the next three years will increase shareholders' confidence and stickiness in long-term holdings. for consumers, moutai provides consumers with choices that meet their needs through direct sales and distribution channels, and a product portfolio represented by moutai liquor. as for partners such as distributors, moutai maintains close communication with them over a long period of time.
by focusing on the interests of shareholders, consumers, partners and other parties in the long term, kweichow moutai has formed a common development effect with multiple parties, and through various transmission and transformation, it has fed back to the growth of the company's value.
a securities analyst in guangdong said that under a series of market value maintenance measures taken by kweichow moutai, kweichow moutai has now allowed investors to form relatively stable expectations for the stock price. in addition to its investment attractiveness, it has provided strong support for the company's valuation. the investment value based on dividend yield, non-negative growth, etc. is gradually becoming prominent.
frequent "actions" during industry adjustment period to boost confidence
responsibility will "feed back" corporate value
it is worth noting that kweichow moutai actively adopts market value management, not only to enhance the company's value, but also to convey confidence to the liquor and even capital markets as an industry leader.
zhang deqin, secretary of the party committee and chairman of moutai group, has mentioned more than once that as an enterprise located in the mountains, moutai has the same responsibilities as the mountains.
as the liquor industry is in a period of deep adjustment, kweichow moutai's measures such as repurchase and cancellation and increased dividends have undoubtedly injected a "boost" into the market. since kweichow moutai recently announced that it plans to repurchase and cancel shares with a maximum of 6 billion yuan, the overall sentiment in the liquor sector has been "high" on september 23 and 24. the tonghuashun liquor index shows that the sector has accumulated a 6.3% increase in the first two trading days. many stocks in the sector, including kweichow moutai, have risen. moutai's single-day increase was as high as 8.8%, "outperforming" the market.
the above-mentioned securities analysts said that under the superposition of multiple factors such as policies and the overall market, the repurchase and cancellation proposed by moutai is to further boost confidence in the liquor market. in the future, other leading liquor stocks may "follow suit" and take similar measures, which will increase the investment value of the industry sector in the short term and attract capital attention and return.
in fact, this is not the first time that kweichow moutai has taken action to boost industry confidence.
in 2010, the liquor industry was affected by macroeconomic fluctuations and market confidence was shaken. kweichow moutai's major shareholder, moutai group, increased its holdings for the first time against this background. in 2012, the liquor industry experienced a crisis of confidence and the share prices of individual stocks in the sector plummeted. moutai group increased its holdings for the second time. in 2013, the liquor industry entered the first round of deep adjustment and the industry was in a state of shock adjustment. moutai group increased its holdings for the third time to boost confidence in the industry, and the liquor industry eventually successfully emerged from the adjustment period. since last year, liquor has once again entered a period of deep adjustment, and moutai group and its subsidiary moutai technology development company have jointly increased their holdings.
some industry insiders said that during the period of deep adjustment, when the liquor industry was at the "bottom of the cycle", kweichow moutai made various "counter-trend moves": major shareholders increased their holdings, continued dividends, and repurchased and cancelled shares. in addition to bringing substantial benefits to the market, it also demonstrated to the outside world that the company has taken relevant measures to cope with the challenges of industry and market fluctuations, demonstrating the "leader"'s responsibility to the industry and society. "these measures and arrangements will ultimately feed back and play a decisive role in the continued enhancement of kweichow moutai's value."
source: southern metropolis daily client
editor: li qinxin
editor: an yilun
reviewer: li bei
