-- Kweichow Moutai's (SHA:600519) attributable profit edged up 1.5% to 27.2 billion yuan in the first quarter from 26.8 billion yuan in the year-ago period, according to a Saturday filing with the Shanghai Stock Exchange.
Earnings per share at the Baijiu wine manufacturer increased to 21.76 yuan from 21.38 yuan in the prior-year period.
Operating revenue grew 6.5% year over year to 53.9 billion yuan from 50.6 billion yuan, in line with forecasts from Huachuang Securities.
Of the figure, its Moutai-branded liquor reached 46 billion yuan, up 5.6% year over year, while its other series brands saw sales of 7.88 billion yuan, up 12% during the period.
Direct selling revenue grew 27% to 29.5 billion yuan, while wholesale agent sales slid 11% year over year to 24.4 billion yuan.
Its Moutai 1935 and Wangzi products gained market share due to a boost in promotions and sales, Huachuang said in its note.
For its part, Jefferies forecasts the company will grow its market share in the premium baijiu segment due to online and offline integration and distributor incentives.
Total operating costs rose to 17.2 billion yuan from 14.4 billion yuan in the prior-year period.
Tax expenses jumped to 8.23 billion yuan from 7.16 billion yuan, the filing said.
The gross margin slid 2.2 percentage points year over year due to lower prices on high-value-added products at the start of the year as well as a decline in shipments, Huachuang said in its note.
Meanwhile, Kweichou Moutai's results indicate stabilizing demand for luxury goods in China, Jefferies said in a note Monday.
A rebound in retail sales over the past four to six months could indicate a return to positive sales, the investment bank said in its note.
For 2026, Jefferies forecasts earnings per share to slide 7% year over year to 72.56 yuan, while revenue could fall 6% year over year to 186.2 billion yuan.