China – Beverages (Nov 6, 2020)

I highlighted this theme on LinkedIn about 2 months back. It has played out quite well since then and it looks like the party isn’t over yet.

Here are few rocketships:

LUZHOU LAOJIAO (000568.SZ): Paused for a month or so in Sep to mid-Oct and then blasted away. Few observations looking at financials:
– Positive trending revenues and EPS
– Positive free cash flow
– ROIC = 23.57%

Shanxi Fen Wine (600809.SH): Price action on this stock says it all. Stocks like these can make an year’s worth of returns in few months. Fundamentally, it looks even better:
– Increasing revenues and EPS yoy
– Positive cash flow
– ROIC = 32%!

Jiugui Liquor (000799.SZ): Significantly small compared to the previous two companies in terms of revenues and cash flow. ROIC not that great either.

Stock price explosion, however, tells there is something going on here. One on my watchlist for sure!

Charts sourced from; Fundamentals from

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: This is not investment advice, please do your research before committing capital.

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