Shanxi Xinghuacun Fen Wine Factory Co Ltd Class A
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
¥448.00 | Qbfqx | Yjfdljdz |
Initiating Coverage on Shanxi Fen Wine; Premiumization and Nationwide Expansion to Drive Growth
Business Strategy and 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 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.