Dukang

Dukang: A report released today by Galaxy Securities note that China liquor makers may rise 50% on valuation grounds. Even if major liquor makers rebound by 50%, valuations on earnings would be between 10-15x. Further, the rebound may be supported by better earnings in the near term, given that current prices of liquor set by the manufacturers are meant to spur mass consumption. Wholesale prices of Moutai and Wuliangye were stable during the Chinese lunar new year and didn’t decline as expected by investors.