Last Saturday, Kweichow Moutai Co. Ltd (SHA 600519) reported earnings per share of RMB 3.05. Fueled by the news, the stock soared and hit limit up not long after the market opened yesterday. It closed at RMB 214.5, second only in price to Shandong Gold Mining Co. Ltd (SHA 600547) which closed at RMB 230.02.

Shenyin & Wanguo Securities Institute has reported that Kweichow Moutai's EPS performance exceeded market expectations of RMB 2.414. Analysts at the institute estimate that the earnings per share on the stock from 2008 to 2010 would be at RMB 4.686, 6.606 and 8.988 respectively, and their 12-month target price is RMB 330~363. Analysts from Guosen Securities are also optimistic about Kweichow. Their estimated earnings per share is RMB 3.85 in 2008 and RMB 5.67 in 2009 and their 4-month target price is RMB 280 per share.

Source: www.china-cbn.com

Date: 4 Mar 2008

CN01/MZ/GB