Kweichow Moutai announced after the market on July 17, 2026, that it will increase the average factory wholesale price of Flying Moutai and the average direct retail price of 100 yuan each from July 18. After this price increase, the factory price rose to 1,369 yuan, and the direct retail price rose to 1,639 yuan. Citigroup Research reports that the second price increase strategy implemented by Kweichow Moutai in July 2026 has significant positive significance. Unlike the first price increase in March, the current factory price and direct retail price were raised by 100 yuan at the same time, making the direct retail price closely in line with the current market-level wholesale price. This strategy not only effectively reduces the long-standing problem of inversion or gap between factory prices and market prices, but also reflects the company's determination to strengthen direct sales channels and reduce the speculative space for traditional wholesalers. Furthermore, the market-based operation plan launched by Maotai at the beginning of the year is steadily advancing reforms including a clear product pyramid structure and diversified distribution channels. Citi believes that with its strong brand moat, excellent profitability, and cash flow, Maotai should enjoy a valuation premium. Based on the projected price-earnings ratio of 25 times in 2026, Maotai was given a target price of RMB 1788.65, maintaining a “buy” rating.

Kweichow Moutai announced after the market on July 17, 2026, that it will increase the average factory wholesale price of Flying Moutai and the average direct retail price of 100 yuan each from July 18. After this price increase, the factory price rose to 1,369 yuan, and the direct retail price rose to 1,639 yuan. Citigroup Research reports that the second price increase strategy implemented by Kweichow Moutai in July 2026 has significant positive significance. Unlike the first price increase in March, the current factory price and direct retail price were raised by 100 yuan at the same time, making the direct retail price closely in line with the current market-level wholesale price. This strategy not only effectively reduces the long-standing problem of inversion or gap between factory prices and market prices, but also reflects the company's determination to strengthen direct sales channels and reduce the speculative space for traditional wholesalers. Furthermore, the market-based operation plan launched by Maotai at the beginning of the year is steadily advancing reforms including a clear product pyramid structure and diversified distribution channels. Citi believes that with its strong brand moat, excellent profitability, and cash flow, Maotai should enjoy a valuation premium. Based on the projected price-earnings ratio of 25 times in 2026, Maotai was given a target price of RMB 1788.65, maintaining a “buy” rating.