Shanxi Xinghuacun Fen Wine Factory Co Ltd Class A 600809

Morningstar Rating
CN¥115.60 +4.10 (3.68%)
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Company Report

Nationwide Expansion and Product Premiumization Drive Shanxi Fen Wine's Long-Term Growth Outlook

Boasting a long and rich history, Shanxi Fen Wine is known as the original distiller of light-flavored baijiu and was often mentioned in ancient and contemporary Chinese literature. We believe the extensive history and quality of products have established a strong competitive advantage in brand strength and pricing power, making it the only premium brand among the light-flavored baijiu beverages. Years of channel development and deepening cooperation with China Resources, which possesses a large distribution network, have also fortressed its competitiveness, which should allow it to generate economic profits well into the future.

Price vs Fair Value

600809 is trading at a LOCK|fyGl>& premium.
Price
CN¥115.60
Fair Value
>!g
Uncertainty
LOCK|t>vtk
1-Star Price
LOCK|l.!
5-Star Price
LOCK|V.$
Economic Moat
LOCK|X&x
Capital Allocation
LOCK|>YdKrkD

Bulls Say, Bears Say

Bulls

Fen Wine is the only light-flavored baijiu brand that could compete in the premium baijiu segment. This positions the company well to capture baijiu’s premiumization.

Bears

The baijiu sector is more cyclical than other consumer staples industries.

Trading Information

Previous Close Price
CN¥111.50
Day Range
CN¥111.01–117.00
52-Week Range
CN¥103.64–203.58
Bid/Ask
CN¥115.60 / CN¥115.62
Shares Outstanding
1.22B
Market Cap
CN¥141.03B
Volume/Avg
7M / 9M

Key Statistics

Price/Earnings (Normalized)
13.85
Price/Sales
3.94
Dividend Yield (Trailing)
5.67%
Dividend Yield (Forward)
5.67%
Dividend Payment Schedule
Jul
Total Yield
5.67%

Company Profile

Shanxi Fen Wine is a typical light-flavored baijiu, featuring a fresher, lighter, and purer taste compared with jiang-flavored and rich-flavored spirits. The company offers a comprehensive product portfolio, covering subpremium, mid- to high-range, and low-end products, including subpremium brand Qinghua series, midrange products Panama and Laobaifen, and low end Bofen. The State-Owned Assets Supervision and Administration Commission of Shanxi province controls 51% of Shanxi Fen Wine.
Sector
Consumer Defensive
Industry
Beverages - Wineries & Distilleries
Stock Style Box
Large Core
Total Number of Employees
14,026

Competitors

Valuation

Metric
600809
002304
000858
Price/Earnings (Normalized)
13.85158.7621.16
Price/Book Value
3.701.192.30
Price/Sales
3.943.755.99
Price/Cash Flow
13.3443.3918.59
Price/Earnings
600809
002304
000858

Financial Strength

Metric
600809
002304
000858
Quick Ratio
0.472.301.99
Current Ratio
2.114.882.47
Interest Coverage
2,850.37210.78449.39
Quick Ratio
600809
002304
000858

Profitability

Metric
600809
002304
000858
Return on Assets (Normalized)
17.15%0.60%−1.13%
Return on Equity (Normalized)
26.66%0.74%−1.80%
Return on Invested Capital (Normalized)
26.13%0.42%−3.23%
Return on Assets
600809
002304
000858

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