Huaxi Securities: Maintaining a "buy" rating on Kweichow Moutai, slow and steady price increases, in line with market-oriented reforms.

Huaxi Securities research report pointed out that Guizhou Maotai's price increase was a slow and steady move, in line with market-oriented reform. Starting from March 31, 2026, the sales contract price of Feitian 53%vol 500ml Guizhou Maotai liquor will be adjusted from 1169 yuan/bottle to 1269 yuan/bottle, and the retail price in the self-operated system will be adjusted from 1499 yuan/bottle to 1539 yuan/bottle. Compared to the last price increase, this time the sales contract price and retail price were increased simultaneously, with the sales contract unit price increasing by 100 yuan/bottle, an increase of about 8.55%, and the retail price increasing by 40 yuan/bottle, an increase of about 2.67%. The interval between this price increase is shortened and the increase is smaller. In the past, the price increase of Feitian Maotai was constrained by various factors, and the retail price has remained at 1499 since 2018. Now, Maotai's strategy is changing, as the consumer group is shifting from high-end circles to middle-class families and real drinkers, positioning itself as a high-frequency consumer product. The price is market-oriented, and therefore, the retail price of the main product Feitian Maotai should also be adjusted in line with economic development and price increases, speculating that keeping the retail price increasing slightly year by year may become the norm, in line with the company's market reform direction. The off-season Feitian market price remains strong, and price increases follow the market, in line with the reform's original intention to shift channels to real consumers. The use of non-standard sales agents aims to stabilize market prices, reduce channel burdens, and solidify the foundation for nurturing consumers. Considering that the price increase will start from March 31, based on the company's delivery schedule and product structure, it is roughly estimated that this price increase will increase total operating income by about 22 billion yuan, boosting revenue by about 1.2 percentage points, and increasing the attributable net profit by about 12 billion yuan, boosting performance by about 1.3 percentage points. Maintaining a "buy" rating.