On May 16th, the i Moutai platform announced an increase in the retail prices for several specialty products within its direct sales system, including the Zodiac and Premium series, effective from 00:00 that day. Analysis suggests this price adjustment indicates a temporary balance between supply and demand for these non-standard products, pointing to a potential sequential improvement in Kweichow Moutai Co.,Ltd.'s future performance.

The analysis notes that recent sales of these specialty products have been stable with a slight increase, and wholesale prices have seen a minor recovery, providing demand-side support for the price hike. On one hand, sales performance on the i Moutai platform improved significantly following price reductions for these products earlier in the year. On the other hand, through its operational strategy on the i Moutai platform, the distillery has gained a clearer understanding of consumer demand characteristics, making the timing for a price adjustment ripe.

This price increase is estimated to directly contribute approximately 1.5 billion yuan in revenue by 2026 and is expected to drive a sequential increase in the average price per ton. The analysis further suggests that with the subsequent implementation of the price adjustment and consignment policies, the supply of these specialty products is projected to increase. This, combined with the continued strong performance of the flagship Feitian Moutai and the series products, alongside the support from a lower base in the second half of 2025, is likely to lead to a recovery in the company's earnings.

According to valuation model calculations, including dynamic valuation and DDM models, Kweichow Moutai Co.,Ltd. is currently considered to be in an undervalued range.