--- title: "Kweichow Moutai: Reforms in Place, King Poised for a Comeback?" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/40182356.md" description: "This is the first set of results since the channel overhaul took effect. Despite a tough YoY comp from the same period last year, Moutai's revenue returned to YoY growth." datetime: "2026-04-24T14:17:38.000Z" locales: - [en](https://longbridge.com/en/topics/40182356.md) - [zh-CN](https://longbridge.com/zh-CN/topics/40182356.md) - [zh-HK](https://longbridge.com/zh-HK/topics/40182356.md) author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)" --- # Kweichow Moutai: Reforms in Place, King Poised for a Comeback? On the evening of Apr 24 Beijing time, Kweichow Moutai (600519.SH) released its 1Q26 results. As the first set of numbers after the channel overhaul, performance was solid: despite a high base, revenue returned to positive growth.**The only blemish was that profit growth lagged revenue, as non-standard SKUs saw price cuts and a lower mix.**$Moutai(600519.SH) **1) Positive growth despite a high base**: 1Q26 revenue reached RMB 53.9bn, up 6.6% YoY, with reform dividends from the iMoutai ecosystem starting to land.**After management deliberately slowed shipments in 2H25 to ease channel pressure, real end-demand has flowed through to the P&L this quarter.** Growth is increasingly driven by C-end consumption, rather than the liquor industry's old playbook of channel stuffing for growth. **2) Moutai liquor: iMoutai as the key growth engine**: Moutai liquor revenue was RMB 46.0bn in 1Q, up 5.5% YoY.**With iMoutai contributing the core incremental volume, Feitian has resumed its role as the primary growth driver.** **Non-standard SKUs (e.g., premium, zodiac, vintage variants) were priced too high with heavy distribution layers last year, leading to widespread secondary-market discounts in a weak demand environment.** As such, we infer non-standard will not be a focus for allocation in 1Q, resulting in softer growth. **3) Series liquor: back to double-digit growth**: Series liquor revenue came in at RMB 7.9bn, up 12.2% YoY. After two quarters of inventory cleansing in Q3–Q4 last year, the line returned to double-digit growth.We think **1935** remains the core support in Q1, while mass offerings such as Prince and Yingbin are prioritizing stable inventory and pricing in a softer demand backdrop. **4) Direct sales mix surged**: By channel, iMoutai revenue reached RMB 21.6bn, up 266% YoY.**With iMoutai scaling, direct sales rose 8.9ppt YoY to 54.8% in 1Q26.** iMoutai has clearly shifted from an auxiliary channel for non-standard SKUs to the core carrier of Moutai's To-C strategy. **5) Lower non-standard mix, GPM down**: **With non-standard price cuts and reduced allocation, product mix diluted, and GPM fell 2.2ppt to 89.9%.** OpEx was broadly stable vs. last year, and attributable net profit was RMB 27.2bn, up 1.5% YoY. **6) Key financials at a glance** **Dolphin Research takeaways:** Looking back at the 2H25 reset, **the essence was a deep strategic purge—abandoning channel stuffing, pricking the non-standard bubble, rebalancing channel economics, and reclaiming pricing power.** The company accepted two quarters of P&L pain to build a healthier, more sustainable, consumption-led growth model for the next 3–5 years.1Q26 is the first report card after this overhaul. The standout is iMoutai. Based on platform surveys, **30% of 1Q users were first-time buyers through official Moutai channels, and 57% were under 40.** **This breaks the decades-old image of a high-end, older business clientele.** Many consumers previously could not access genuine goods at fair prices or suitable channels, and **iMoutai effectively unlocked this long-tail demand.** On pricing, **the concern was that iMoutai volume would depress offline prices.** The opposite occurred: post-CNY Feitian wholesale prices held at RMB 1,550–1,600, and even in Apr's off-season they remained ~RMB 1,560/1,650.There was no panic selling or a sharp price drop, unlike prior off-seasons. **Directly supplying true end-consumers reduces cyclical distortions from multi-layer stocking, hoarding, and batch offloading.** Pricing now reflects real supply-demand, rather than channel speculation. **Looking ahead, Moutai is moving away from 'dealer stuffing → contract liabilities as a reservoir → smoothed reported growth'.** It is pivoting to a new curve led by direct operations, C-end supply, and commission-based distribution. **Once this market-driven mechanism scales, Moutai can grow via frequent, small price steps without obvious volume lifts.** Incremental profit can then be reinvested into brand, logistics, and consumer reach, accelerating the flywheel. For full-year 2026, **Feitian price hikes and the new channel model (agency & consignment) only started in late Mar.** Their P&L contribution should appear from Q2, and a softer base from 2H25 should help.We therefore expect a back-half-weighted cadence with sequential acceleration. On valuation, since the annual report, Moutai's multiple has rebounded from ~19x to above 20x. For investors constructive on this year's execution of reforms, the current entry point still offers decent risk-reward. **Detailed earnings read-through:** **I. Headline growth back to positive** Moutai posted 1Q26 revenue of RMB 53.9bn, up 6.6% YoY.**After the deliberate slowdown in 2H25 to stabilize wholesale prices, rebalance channels, and pave the way for 2026 market reforms, 1Q marked the first inflection on the reported line.** Channel checks show distributor shipments accelerated notably in Jan–Mar, while channel inventory generally fell below half a month (vs. 1–2 months under the old model), indicating a healthy state.**In other words, this round of growth is largely driven by real sell-through at terminals.** **II. Moutai liquor: iMoutai as the core engine; Feitian back in the lead** By product, the biggest change was in Moutai liquor—especially Feitian. 1Q26 Moutai liquor revenue rose 5.6% YoY to RMB 46.0bn.On iMoutai, channel work suggests the platform recorded over 2.12mn orders in Jan, **including more than 1.43mn Feitian orders, a 67.4% share that flipped the prior non-standard-heavy order structure.** In Feb–Mar, supported by gifting and banquet demand around CNY, monthly orders stayed above 1.8mn. Thus the Q1 growth mix is clear: **iMoutai added direct Feitian volume, while traditional-channel Feitian shipments reached ~40%, similar to last year.** Feitian delivered the core incremental contribution.**As for non-standard SKUs, given last year's high pricing and heavy distribution logic across premium, zodiac, and vintage lines, discounts widened in a weak market.** We therefore expect limited non-standard allocation in 1Q, laying groundwork for the agency/consignment model launched in Mar. **III. Series liquor: leaner and back to double-digit growth** 1Q26 series liquor revenue was RMB 7.9bn, up 12.2% YoY, returning to double-digit growth after consecutive cleansing in Q3–Q4 last year.Post deep destocking, channel inventories are now at a cyclical low, and feedback from the spring trade fair suggests no volume expansion in principle but potential mix upgrades via new SKUs such as 1935 Prestige. **We think 1935 remains the real support in Q1, while mass brands like Prince and Yingbin focus on stable inventory and pricing amid softer demand.** **IV. Direct sales mix sharply higher** **On channels, the biggest shift is that direct sales have become the main engine.** 1Q26 direct revenue was RMB 29.5bn, up 27% YoY, of which iMoutai contributed RMB 21.6bn or 73%.**After a clear scale-down in 2025, iMoutai's 1Q26 re-acceleration suggests its role has upgraded from an auxiliary non-standard channel to the core carrier of Moutai's To-C strategy.** Meanwhile, **the agency model launched in late Mar signals a fundamental change in dealers' roles.** They will shift from quota-taking, inventory-holding, and waiting, to customer acquisition, private-domain ops, and F&B penetration.In short, profits will accrue to those who sell to real consumers, not just those who hold inventory. Dolphin Research views this as positive for Moutai. Channel value is not disappearing; it is moving from 'financial intermediary' back to 'sales service provider'.The ecosystem should be healthier as a result. **V. The 'reservoir' matters much less** Contract liabilities—the traditional 'reservoir'—fell to RMB 3.0bn at end-1Q, down 66% YoY.**Two drivers: a sharply higher direct-sales mix reduced prepayments (iMoutai is recognized as instant revenue), and we believe Moutai tightened prepayment terms for dealers in Q1, collecting only necessary stocking funds rather than locking in large advances.** **VI. Lower non-standard mix, GPM down** **GPM fell 2.2ppt to 89.9% due to non-standard price cuts and reduced allocation, which diluted product mix.** Operating expenses were broadly stable YoY, and attributable net profit reached RMB 27.2bn, up 1.5% YoY. **Longbridge Dolphin Research coverage on 'Kweichow Moutai':** **Earnings season** Apr 17, 2026: '[**Kweichow Moutai: Don't Be Spooked by the Print; Marketization Is the Real Trump Card**](https://longbridge.cn/en/topics/39982992?channel=SH000001&invite-code=7XHHT4&app_id=longbridge&utm_source=longbridge_app_share&locale=zh-CN&share_track_id=52124d96-3401-4e2e-94bb-a1c0ee26752b)' Oct 29, 2025 Earnings Take: '[Moutai: Shedding Channel Burdens, Awaiting the Cycle Turn](https://longbridge.cn/en/topics/35729630?channel=SH000001&invite-code=7XHHT4&app_id=longbridge&utm_source=longbridge_app_share&locale=zh-CN&share_track_id=b1395149-ac11-418d-962d-c485713ba537)' Apr 29, 2025 Earnings Take: '[Moutai: With Non-Standard in One Hand, Series Liquor in the Other—No Fear if Feitian Slows](https://longportapp.cn/en/topics/29244768?channel=t29244768&invite-code=7XHHT4&app_id=longbridge&utm_source=longbridge_app_share&locale=zh-CN)' Apr 3, 2025 Earnings Take: '[Moutai: Barely Passes—How to Restore the Broken Myth?](https://longportapp.cn/en/topics/28574703?channel=t28574703&invite-code=7XHHT4&app_id=longbridge&utm_source=longbridge_app_share&locale=zh-CN)' Risk disclosure and disclaimer: [Dolphin Research Disclaimer and General Disclosure](https://support.longbridge.global/topics/misc/dolphin-disclaimer) ### Related Stocks - [600519.CN](https://longbridge.com/en/quote/600519.CN.md) ## Comments (1) - **相信概率 · 2026-04-25T01:27:44.000Z · 👍 3**: Many people may have never even tasted Feitian Moutai. I estimate that 95% of Chinese people haven't drunk it. So they simply don't know who the main consumer base of Moutai is, or why Feitian Moutai is consumed. However, the decline of premium baijiu is essentially a signal of the economic downturn