China's largest and the world's most valuable alcoholic beverage company, Kweichow Moutai, is officially the first company to hit the 1,000-yuan milestone since 2006. The Shanghai bourse that lists the company overhauled its entire system back in 2005. Kweichow Moutai's A shares were originally listed on the exchange in 2001.
The Chinese distillery, which produces the country's popular baijiu spirits, surpassed the milestone as it's stock prices reached 1,001 yuan or $145 on the Shanghai Stock Exchange on Thursday. Kweichow Moutai stock prices had been on an upward trend throughout the year, surging by as much as 69 percent over the past few months.
The increase has been attributed to the companies better than expected earnings in the first quarter of 2019. In its latest earnings reports, the firm's net profits for the first quarter of the year were up by 30 percent when compared to the same period last year.
Kweichow Moutai reported earnings of $5.1 billion, surpassing analysts' estimates for the quarter.
As of this week, the Chinese liquor company is now valued at around $180 billion. This officially makes it China's sixth most valuable listed company, right behind the country's largest banks and its state-owned oil company. Apart from its alcoholic beverage products, Kweichow Moutai has expanded into other businesses such as packaging material production, anti-counterfeiting technology, and information technology.
Major market analysts had already predicted that the company was going to be surpassing the 1,000-Yuan mark after it reported its first-quarter earnings. Goldman Sachs initially forecasted that the company would likely hit 1,033 Yuan. Meanwhile, Chinese brokerage firm Pacific Securities increased its forecast for the stock to 1,030 Yuan.
Kweichow Moutai, which is partially state-owned, currently produces the country's most popular liquor. Baiju, a clear spirit with a head-spinning 53 percent alcohol content, is usually served during big events and ceremonies. Due to its popularity, Moutai's Maotai baijiu brand had been declared by the government as China's national liquor. Kweichow Moutai is a subsidiary off the Kweichow Moutai Group, which is also partially owned by the Guizhou Provincial People's Government.
Maotai, which is named after a town in southwestern Guizhou, is often presented to dignitaries and given as diplomatic gifts to other countries. The drink was also famously used during President Richard Nixon's visit to China in 1972.
Kweichow Moutai officially became the world's most valuable liquor company after it overtook Diageo, the company that owns the Johnnie Walker liquor brand. Diageo currently has a market value of around $102 billion.
