1H2020 at a Glance: Performance Forecast for Chinese Liquor Companies

According to a report from CICC, the impact of the epidemic is short-term for Chinese liquor companies, which showed strong resilience, with the domestic economic recovery and the arrival of the banquet peak. High-end liquor companies are robust, while sub-high-end liquor ones are more growth-oriented and showing more space for appreciation.

Top three companies in terms of revenue and net profit

Bairun (002568:SZ): the offline channel has recovered significantly, and net profit is expected to surge 50% in 1H2020. The company's flavor and fragrance business improved, and the cocktail business was less affected by the epidemic, which drives up the revenue and profit in the second quarter.

Wuliangye (000858:SZ): both revenue and profit are up around 20% YoY. Despite the slowdown in the delivery pace of distributors, channels such as group purchases, e-commerce, and new retailing contribute performance.

Moutai (600519:SH): revenue and net profit are expected to rise by 13% and 15%, respectively, as distribution volume climbed, and the percentage of direct sales increased in the second quarter.