Analyst

Steve

Experience in both buy and sell-side in Asia.

Equity Bottom-Up

Wuliangye Yibin Co Ltd A / Equity Bottom-Up

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<li>
<a href="https://www.smartkarma.com/entities/wuliangye-yibin-co-ltd" target="_blank" data-smartkarma-citation="entities:19968:1" rel="noopener">Wuliangye Yibin Co Ltd A (000858 CH)</a>, the second largest Chinese liquor company in China, trades at one of the lowest PE multiples in the space. </li>
<li>
<a href="https://www.smartkarma.com/entities/kweichow-moutai-co-ltd-a" target="_blank" data-smartkarma-citation="entities:1553:1" rel="noopener">Kweichow Moutai (600519 CH)</a>, the largest Chinese liquor company trades at 26x 2024 expected earnings, and most other listed Chinese liquor names trade above 20x 2024 expected earnings.</li>
<li>Upon closer look, Wuliangye is actually a classic case of value trap – slow growth with no change or slowly deteriorating PE multiples. </li>
</ul>



Wuliangye Yibin Co Ltd A (000858 CH), the second largest Chinese liquor company in China, trades at one of the lowest PE multiples in the space. 

Kweichow Moutai (600519 CH), the largest Chinese liquor company trades at 26x 2024 expected earnings, and most other listed Chinese liquor names trade above 20x 2024 expected earnings.
Upon closer look, Wuliangye is actually a classic case of value trap – slow growth with no change or slowly deteriorating PE multiples. 


Wuliangye (000858 CH):  Classic Value Trap