Fintel cut target for Luzhou Laojiao stock to CNY 99.76

Published on 10/08/2026 at 11:07 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

First-half revenue fell 36.35 percent to CNY 10.47 billion. For Luzhou Laojiao stock, net margin fell to 41.44 percent.

Luzhou Laojiao, CNE000000GF2, Illustration mit AI erstellt.

Luzhou Laojiao (CNE000000GF2) had its average one-year analyst target cut from CNY 111.13 to CNY 99.76 on September 14, 2026, according to Fintel. The 10.24 percent reduction came as the company entered a difficult first-half reporting period.

Revenue falls in first half

According to Futunn on September 8, 2026, first-half revenue fell 36.35 percent year over year to CNY 10.472 billion. Net profit attributable to shareholders declined 43.37 percent to CNY 4.339 billion, while adjusted net profit fell 43.90 percent to CNY 4.291 billion.

The second quarter was weaker than the first half as a whole. Revenue fell 65.54 percent year over year to CNY 2.447 billion, and net profit attributable to shareholders dropped 79.45 percent to CNY 631.0 million, according to Futunn's September 8, 2026 review.

Margins show the pressure

Luzhou Laojiao's first-half net margin fell 5.14 percentage points year over year to 41.44 percent, while gross margin declined 1.74 percentage points to 85.35 percent. The period expense ratio rose 4.38 percentage points to 15.12 percent, adding pressure to the earnings profile.

The product mix also weakened. Mid- and high-end liquor revenue fell 38.86 percent to CNY 9.200 billion in the first half of 2026, while sales volume declined 42.53 percent to 13,900 metric tons. Average selling price rose 6.38 percent to CNY 663,700 per metric ton, pointing to volume control alongside weaker demand.

Target remains above market price

Fintel said the revised CNY 99.76 average target stood 35.48 percent above its referenced CNY 73.63 closing price. The target had fallen six times in the historical series cited by the report, and the median target was reduced from CNY 102.20 to CNY 93.23.

On October 8, 2026, the stock was last quoted at CNY 72.61 on the Shenzhen Stock Exchange at 3:04 p.m. CST. Its market capitalization was CNY 106.7 billion, while the 52-week range was CNY 69.32 to CNY 145.88, placing the quote close to the lower end of that span.

Business remains centered on baijiu

El Fondo identifies Luzhou Laojiao as a consumer defensive company listed on the Shenzhen Stock Exchange under ticker 000568.SZ. The company produces alcoholic beverages including National Cellar 1573 and Luzhou Laojiao Tequ, with its business centered on Chinese baijiu.

The combination of lower revenue, weaker volume and higher expenses gives the revised target a clear operating backdrop. For investors, the key comparison is between the CNY 99.76 average target and the CNY 72.61 market quote, alongside the sharp deterioration in first-half earnings.