Jiugui Liquor Co Ltd

Jiugui Liquor disclosed its semi-annual report for 2026. In the first half of the year, net profit attributable to the parent company was 12.3191 million yuan, up 37.57% year-on-year. Total operating revenue for the same period was 530 million yuan, down 5.58% year-on-year. Net profit after deducting non-recurring items was 11.3536 million yuan, up 34.83% year-on-year. Net cash flow from operating activities was negative 106 million yuan, compared with negative 234 million yuan in the same period last year. Basic earnings per share were 0.0379 yuan, and the weighted average return on equity was 0.33%.

The liquor sector strengthened today, with Jinhui Liquor and Shede Spirits hitting their daily limit up intraday at 16.89 yuan per share and 37.49 yuan per share respectively. Golden Seed Winery surged more than 7% at one point, while Kouzi Distillery, Shanxi Xinghuacun Fen Wine Factory, Jiugui Liquor, Wuliangye, and Yanghe Brewery all gained over 4%. Goldman Sachs noted in its latest research report that the most difficult destocking phase for China's liquor industry is over, with supply-side cuts accelerating, wholesale prices of key mid-to-high-end varieties stabilizing, and channel inventories trending healthier. The industry is in the very early stages of recovery, but broader commercial demand recovery still needs confirmation due to macroeconomic uncertainties, and the industry's long-term market capacity faces structural contraction.

On July 30, liquor concept stocks strengthened intraday, with the sector rising 3.04 percent. Shede Spirits gained 10.01 percent, Gujing Distillery rose 7.25 percent, Jiugui Liquor advanced 5.28 percent, Yingjia Distillery climbed 4.77 percent, and Huangtai Liquor added 4.73 percent. Monitoring data from the China Alcoholic Drinks Association shows that in June 2026, imports of 16 major imported alcoholic beverage categories totaled 70.7 thousand kiloliters, with an import value of 2.721 billion yuan. For the first six months, cumulative imports reached 348.6 thousand kiloliters, valued at 13.427 billion yuan. A research note from China Securities points out that the liquor sector has entered an upward phase of earnings cleansing. In the first quarter of 2026, the year-on-year declines in industry revenue and net profit attributable to the parent company narrowed significantly. Leading distillers such as Kweichow Moutai and Wuliangye have already achieved positive revenue and profit growth. The second quarter is expected to be an earnings inflection point for some distillers. A research note from Shenwan Hongyuan Securities notes that high-end liquor prices are likely to stabilize in 2026, and the industry is accelerating into a consolidation phase centered on rising concentration. The future will see a pattern of big fish eating big fish, and top-tier companies with advantages in brand strength, channel power, and organizational capability will navigate the cycle more effectively.

A-share liquor concept stocks rose collectively on July 15, with all sector constituents in positive territory. Golden Seed Wine surged by the daily limit, while Gujing Distillery, Shede Spirits, King's Luck, Jiugui Liquor, and Luzhou Laojiao all gained over 3%. Heavyweights Kweichow Moutai, Wuliangye, and Swellfun also followed the uptrend. Goldman Sachs' latest research note pointed out that the most difficult destocking phase for China's liquor industry has passed, with supply-side cuts accelerating, wholesale prices of core mid-to-high-end varieties gradually stabilizing, channel inventories trending healthier, and the industry in the very early stages of recovery. However, this rally contrasts with recently disclosed industry fundamentals. Swellfun released its 2026 half-year earnings forecast on July 14, expecting a net loss attributable to shareholders of 6.22 million yuan for the first half, swinging from profit to loss year-on-year, mainly due to the company proactively optimizing channel inventory structure during the industry's deep adjustment period, leading to a revenue decline of about 300 million yuan and a gross profit decline of about 250 million yuan. Shede Spirits also forecast on July 10 that its first-half net profit attributable to shareholders would drop sharply by 60.52% to 69.55% year-on-year, also mainly due to proactive shipment controls to stabilize prices. Several brokerages believe the liquor sector has confirmed a bottom and is showing marginal improvement. Nanjing Securities noted that the industry remains in a deep adjustment period, but leading brands are trading volume for price, with valuations at around the 10th percentile over the past decade, and medium-to-long-term investment value gradually emerging. Shenwan Hongyuan Securities and Kaiyuan Securities also believe that the stable wholesale price of Feitian Moutai demonstrates demand resilience, and the sector has entered a valuation trough, with a high probability of recovery in the second half of the year.