Dukang

Dukang: revealed yday that it has joined the ranks of 5 or 6 other white liquor brands endorsed by China’s Ministry of Foreign Affairs to serve foreign dignitaries with. Business Time notes, with the official stamp of approval, the co hopes the brand will gain greater prominence in China and beyond. Other brands on the list include established first-tier brands like Kweichow Moutai and Wuliangye Yibin. Yday, Dukang also signed agreements with the Henan provincial alcoholic beverages industry association and the Singapore Chinese baijiu association to promote the brand in the region. It also signed a letter of intent to distribute Dukang baijiu with local distributor Oasis Global. Dukang is a small player in China's highly fragmented and competitive baijiu market. It has a 3% market share in densely-populated Henan province where it is currently the top local brand. The company is banking on the cultural and historical connotations surrounding its distinctive name. Dukang is the name of a legendary inventor of Chinese wine, mentioned in a poem by Chinese warlord Cao Cao. The company is expanding and marketing itself aggressively. Singapore is the first stop for Dukang’s proposed world tour, with possible next destinations being France and Spain. Dukang intends to promote Chinese baijiu in countries which have a drinking tradition; the company also hopes to make its products available to overseas Chinese. Dukang shares have hit a one-year high, having surged under heavy trading volume the past few trading days. The stock trades at 5.7x P/E, vs overseas peers Moutai at 12.9x, Wuliangye at 8.0x, and Sichuan Swellfun at 20.9x.