As the only stock priced above RMB 100 on either of the two bourses, the company announced that the 1H 2008 gross margin on its main business is over 90%.

The company's 2008 Semiannual Report showed that the gross margin on its distilled spirits reached 90.43%, up 5.23% YOY. Specifically, spirits under the Moutai brand saw a gross margin of 92.36% for 1H 2008, with lighter distilled spirits seeing 90.84% growth.

Furthermore, the company achieved a 163.56% YOY increase in net profit for 1H 2008 to RMB 2.24 bln, with its interim EPS surging by 163.33% YOY to RMB 2.37. However, the company's valuation remained moderately high, as the dynamic P/E ratio and the P/E ratio for 2008 were 28.51 and 13.17 respectively.

According to statistics issued by Shanghai Wind Information Co., Ltd., 46.83% of the company's stock is still held by large institutional investors.

Meanwhile, Sichuan Swellfun Co., Ltd. saw net profit of RMB 134 mln for 1H 2008, up 97.54%, with interim EPS soaring by 92.86% to RMB 0.27. In addition, the gross margin on its distilled spirits hit 82.54%, edging up 5.3% YOY. Compared with the company's continuously rising profits, Sichuan Swellfun's net cash flow per share used in operating activities was only RMB (0.15), slumping by 144.12% YOY.


Source: China Business News

Date: 28 Aug 2008

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