Luzhou Laojiao Co Ltd (000568) - Comprehensive analysis
Near-term macroeconomic headwinds have negatively impacted baijiu (clear liquor) demand and the sector's profitability, resulting in slower year-over-year sales growth across all segments in recent quarters. Our channel checks indicate that consumer sentiment continues to be weak, and distributors are cautious about inventory stocking. We anticipate that sluggish baijiu sales will persist into 2025. Consequently, we are shifting our preferred baijiu brand from Luzhou Laojiao to Moutai, as Moutai's demand remains relatively resilient, while Luzhou Laojiao faces greater challenges in boosting sales.
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