Baijiu was once killed! The internal documents of

The reason for the continuous sharp drop of front-line Baijiu has been found. The reporter learned today that the PICC Property and Casualty Insurance Party Committee Office recently issued a notice document on "Prohibition of Alcohol".

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PICC Property&Casualty Insurance replied that it would not comment publicly

The document shows that the "Prohibition Order" contains the following 6 items:

1. It is forbidden to drink alcohol during internal official activities;

2. It is forbidden to drink alcohol on working days (including working hours and off-duty hours) and other working hours; If it is really necessary to drink alcohol in foreign affairs work, it must be carried out in strict accordance with the foreign affairs work system;

3. It is strictly prohibited to use public funds for banquets and drinking in violation of regulations;

4. It is strictly prohibited to participate in banquets and alcohol that may affect the fair performance of official duties;

5. It is strictly prohibited to drink too much at any time, place or place;

6. It is strictly prohibited to drink and drive, cause trouble and other illegal acts.

The company will punish and hold accountable those who violate the above-mentioned "prohibition order".

Image source: screenshot of online circulation

According to PICC's response, PICC said it would not comment publicly on the internal documents.

According to the reporter, the original CIRC officially issued the "Prohibition Order" document in 2017, and there is no public relevant information up to now. Some insiders said that central enterprises and state-owned enterprises have always had relevant requirements for "prohibition of alcohol". This "prohibition of alcohol" is a requirement of individual companies and is not expected to have much impact on the industry.

It is reported that a number of state-owned enterprises have issued the relevant documents of "Prohibition Order".

The reporter simply calculated that the total market value of the seven Baijiu brands represented by Kweichow Moutai, Wuliangye, etc. evaporated by more than 130 billion yuan on the second day (January 31) when the document was issued.

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Baijiu shares fell collectively

Wuliangye fell by nearly 6%

In the morning of the 6th, the "Prohibition" continued to ferment, and Baijiu shares fell collectively, bringing huge pressure to the market. In the morning, the Baijiu sector index fell by more than 3%, and Wuliangye directly opened below 200 yuan, with a maximum drop of more than 6%; Kweichow Moutai also fell below 1800 yuan at the opening, down more than 3% during the session; Shanxi Fenjiu Daily K Line has 10 consecutive negative lines; Yanghe Shares, Swellfun, Luzhou Laojiao and others have hit new lows after the Spring Festival, but the decline of some individual shares has subsequently narrowed.

Kweichow Moutai also fell by more than 3%.

However, among the second tier Baijiu, Yingjia Gongjiu rose by more than 3%, while Jinshiyuan, Yilite and others fell slightly.

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About the "Prohibition Order"

See what experts say about

Shen Hao, an analyst at Huachuang Securities, believes that the CIRC had a prohibition document as early as 2017, and there was no significant increase in the scope. Governments and units at all levels have mature relevant systems and clear requirements, but in recent years, the spread of every point document will still cause short-term panic, and the mood will recover quickly, never having a substantive impact on the fundamental situation.

He believes that the consumption environment and scene of the Baijiu industry have entered a relatively stable and healthy balance state after years of adjustment in the early stage. Under the clear main goal of stable growth this year, there will be no "consumption tax", "ban on XX" and other strike policies beyond the reasonable range. It can be clearly seen that this year is a year when the fundamentals of the Baijiu industry are relatively strong. In the first half of the year, the dynamic sales turnover rate is faster than expected. In the second half of the year, inflation is expected to rise again. All the year round, there are catalytic series. The valuation will be relatively stable in a relatively high position under a high outlook. The excess part will focus on the stage investment opportunities. The short-term decline under the influence of sentiment is a very good opportunity to buy points.

CITIC Securities believes that the overall consumption market of the 2023 Spring Festival will show a high degree of momentum, and the dynamic sales of Baijiu will be excellent. It is expected that the dynamic sales of Wuliangye and other famous liquors will increase by more than 20%. Considering that the business banquets and dinners will continue to be repaired in February and March, we expect that the mobile sales will increase in 2023Q1. The short-term sector valuation has moved to a more reasonable level, and the focus of the post-holiday and 23Q2 will be mainly on the price performance of famous liquor and large single products. At the same time, on the basis of reasonable valuation, long-term stability of industry fundamentals, and short-term prosperity, any marginal rise will promote the performance of the sector.