Maotai 5 consecutive decline in market value shrunk by more than 240 billion!

Guizhou Maotai since April 28 after the release of 2021 quarterly report, fell for 5 consecutive trading days, a cumulative decline of more than 9%, the market value shrunk more than 240 billion yuan, almost fell without 1 Zijin Mining or 1 Sany Heavy Industry. This morning, Guizhou Maotai once opened low, fell below 1900 yuan during the day, the lowest probe to 1875 yuan, and then hit a new low for the year. If calculated from a high of 2627.88 yuan in February, less than 3 months, Guizhou Maotai maximum loss of market value of nearly 950 billion yuan, nearly equal to the total market value of Wuliangye or Agricultural Bank.

Guizhou Maotai shares have been under pressure recently mainly for two reasons, on the one hand, the last two years Guizhou Maotai performance growth rate has declined continuously, the first quarter of 2021 net profit growth year-on-year is down to single digits, which makes the market on Guizhou Maotai growth rate is expected to move down. And, the negative net cash from operations in the first quarter also had a negative impact on its share price.

On the other hand, the valuation is too high is the root cause of the recent continuous killing of Guizhou Maotai’s stock price. 2019 Guizhou Maotai soared 109% (compounded), and in 2020 again soared more than 71%%. Stock prices rose continuously, so that the stock price is out of the fundamental support, resulting in a situation of high valuation. Calculated at the highest price this year, when the dynamic P/E ratio was as high as 71 times, even after significant adjustments, to today’s midday closing price, the dynamic P/E ratio is still as high as 43 times, still far above the average market P/E ratio, but also much higher than Guizhou Maotai’s own historical average P/E ratio.

The overall divergence of the early trading of liquor stocks, Guizhou Maotai’s breakthrough, driving Luzhou Laojiao, Wuliangye and other first-line liquor stocks to pull back. And ST Shede low open high strong stop, the share price once again hit a record high, it drove Shuijingfang, liquor, Elite and other second- and third-line liquor stocks have risen.