Dukang

Dukang: Substantial shareholder Fidelity Int'l has raised its deemed interest in the baijiu maker from 6.98% to 7.01%, via open market purchase of 239,100 shares at an average price of 13.6¢ on 19 May.

Dukang recently reported a 76% y/y plunge in 3QFY15 net profit to Rmb1.8m, but it marked the group’s second consecutive quarter of profitability.

While some reports suggest that there may be a slight turnaround in China's baijiu market, Dukang has yet to see any clear trend, although it is expected to stabilise in 2015.

Dukang’s share price performance has lagged those of its larger peers in China, with Kweichow Moutai (+105%), Wuliangye Yibin (+71%), Luzhou Laojiao (+77%) all rallying in the past 12 months in contrast to Dukang’s 28% decline.

At the current price, Dukang trades at 0.26x P/B compared to Kweichow Moutai’s 5.5x, Wuliangye Yibin’s 2.5x and Luzhou Laojiao’s 3.6x.