Kweichow Moutai Co.

What is 600519?

The Company's main products portfolio consists of Kweichow Moutai liquors and other liquor series, including Moutai Prince liquors, Moutai Ying Bin Chiew and Laimao liquors. The Company distributes its products within the domestic market and overseas markets.

Is 600519 a good pick?

As usual for Kweichow Moutai Co., it shows solid numbers in its latest annual report reporting revenues of $16.55 billion an increase of 7.63% year-over-year and 18.72% compared to 2019. But the third-quarter report fell short of investors' expectations, who were expecting earnings of $10.34, but the total amount was 30 cents less, id est $10.04 was what Kweichow Moutai Co. reported.

Technical analysis

From August 20, 2021, to October 13, 2021, the share price increased 27% due to Pfizer’s vaccine being approved and the United States and China agreed to hold a virtual summit. From October 13, 2021, to November 10, 2021, the share price decreased by -10% because covid cases rose and real estate firms fell. On November 11, 2021, China reported strong economic data, then on December 08, 2021, China injected US$188 billion of liquidity into its economy causing Kweichow Moutai to increase 25% to 2180.00 CNY. The next week it fell 7% due to high inflation in the United States but it recovered 10% 3 days later. From December 24, 2021, to today the share price plumped -12% to 1940.55 CNY because of concerns over Coronavirus arouse.

According to current technical indicators, the share price could decrease a minimum of -4% to 1853.53 touching 0.618 support but if it breaks 0.618 support it could fall -9% to the next support reaching 1754.71 CNY price per share. Important to consider a Golden cross on December 28, 2021.