# Luzhou Lao Jiao (000568.SHE)

Canonical: https://gigainvestors.com/s/000568.SHE

Analysis as of: 2026-10-16T07:35:04.738Z. Financial observations: FY1996–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: CNY 71.37 per share; close as of 2026-10-15.

Estimated value: low CNY 98.95 per share, central CNY 109.85 per share, high CNY 124.37 per share. Buy at or below the central value CNY 109.85 per share. Valuation as of 2026-10-16T07:35:04.738Z; scenarios are not confidence intervals.

Expected annual return: 15.5% at the stated quote. About 15.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.23×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.30×

- FY2017: 0.33×

- FY2018: 0.36×

- FY2019: 0.39×

- FY2020: 0.48×

- FY2021: 0.51×

- FY2022: 0.55×

- FY2023: 0.59×

- FY2024: 0.58×

- FY2025: 0.54×

### moat: pass

- ROIC, median of available years: 44.4%

- ROIC, second-lowest year: 38.3%

- Typical minus recent gross margin: -2.3 pp

- Typical gross margin (annual median): 84.4%

- Recent gross margin (lower of latest and 3-year median): 86.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 8.6%

- ROIC including acquisitions, ten-year median: 37.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 31.9%

- FY2017: 38.6%

- FY2018: 46.1%

- FY2019: 38.3%

- FY2020: 38.6%

- FY2021: 44.6%

- FY2022: 48.2%

- FY2023: 52.1%

- FY2024: 73.3%

- FY2025: 44.2%

### economics: pass

- Owner earnings / net income, 5-yr: 0.98×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 55B

- Net income, five-year total: CNY 56B

- Return on incremental invested capital: 40.1%

- Working capital / revenue, annual change: 1.0 pp

- Working capital / revenue, change between three-year averages: 5.3 pp

- Working capital / revenue, final three-year average: 49.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: 0.89×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 38.6% vs 52.1%

- Per-share earnings: 1.40 to 9.02 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.5%

- Ordinary dilution, 5-year annual growth: 0.1%

- Market cap gain: CNY 125B

- Cumulative retained earnings: CNY 34B

- Diluted shares, 10-year annual growth: 0.5%

- Diluted shares, 5-year annual growth: 0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 26.3%

- Per-share value change: CNY 7.62

- Per-share value, starting three-year median: CNY 1.40

- Per-share value, ending three-year median: CNY 9.02

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.0%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 3.2B

- Cumulative net income, 10 years: CNY 75B

- ROIC, first three-year median: 38.6%

- ROIC, last three-year median: 52.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 1.40

- FY2017: CNY 1.79

- FY2018: CNY 2.42

- FY2019: CNY 3.17

- FY2020: CNY 4.10

- FY2021: CNY 5.43

- FY2022: CNY 7.06

- FY2023: CNY 9.02

- FY2024: CNY 9.18

- FY2025: CNY 7.36

### accounting: pass

- Sloan accruals: 5.7%

- Receivables to sales index (DSRI): 0.00×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.66×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.07×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.8%

- FY2017: -5.7%

- FY2018: -3.6%

- FY2019: -0.7%

- FY2020: 3.1%

- FY2021: 0.6%

- FY2022: 4.1%

- FY2023: 4.1%

- FY2024: -8.4%

- FY2025: 5.7%

## Holders

## Price story

Down 72% since Mar 2023 · sales -17.5%

Story as of 2026-10-16T10:00:03.545Z; price observation 2026-10-15.

Price needs cash profits to shrink 5.3% a year for ten years

### Sales · FY2024–2025

sales -17.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 8.6B 

- FY2017: CNY 10B 

- FY2018: CNY 13B 

- FY2019: CNY 16B 

- FY2020: CNY 17B 

- FY2021: CNY 21B 

- FY2022: CNY 25B 

- FY2023: CNY 30B 

- FY2024: CNY 31B 

- FY2025: CNY 26B 

### Gross margin · FY2025

gross margin 86.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 60.7% 

- FY2017: 71.9% 

- FY2018: 77.5% 

- FY2019: 80.6% 

- FY2020: 83.0% 

- FY2021: 85.7% 

- FY2022: 86.6% 

- FY2023: 88.3% 

- FY2024: 87.5% 

- FY2025: 86.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in beverages wineries & distilleries; annual sales are CNY 25.7 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.738Z); FY2025: revenue 25731010647.32; grossProfit 22289261064.63; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000568.SHE: Luzhou Laojiao Co.,Ltd, together with its subsidiaries, produces and sells alcoholic products in China and internationally. The company offers liquor products; and cellar-aged, red, and health wine under the Guojiao 1573, Luzhou Laojiao Special Liquor, Centennial Luzhou Laojiao Cellar-aged Liquor, Luzhou Laojiao Touqu, Luzhou Laojiao Black Cap, Gaoguang, Luzhou Laojiao 1952, Luzhou Laojiao Tequ, Touqu, and Heigai brands. It is also involved in the sales of fruit wine; cultivation and sale of agricultural products; import and export of food and alcoholic beverages; and technology and business development services. In addition, the company provides support services comprising contact district, advertising and procurement platforms, online consultation, and service platforms. Luzhou Laojiao Co.,Ltd was founded in 1950 and is headquartered in Luzhou, China.

### Why customers stay

Margins ranged from 86.6% to 88.3% during 2023–25; it earns 44.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.738Z); FY2023: grossProfit / revenue = 88.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.738Z); FY2024: grossProfit / revenue = 87.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.738Z); FY2025: grossProfit / revenue = 86.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.738Z); 10-year return on capital observations [[2016,0.3190086598545558],[2017,0.38648568666098904],[2018,0.46146177859824306],[2019,0.3832331779630914],[2020,0.38594869079853644],[2021,0.4462816937610989],[2022,0.48210685814734855],[2023,0.5214833562982207],[2024,0.7328308314212951],[2025,0.4415292603695136]]; median 0.44390547706530625. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.738Z); FY2016: growth capex 78942029.25; upkeep 158120600; owner earnings 1957193269. Growth capex / owner earnings = 0.04033430448610438.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.738Z); FY2017: growth capex 351191419.23295546; upkeep 1064805144.6070445; owner earnings 1662542146.3929555. Growth capex / owner earnings = 0.21123760380745768.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.738Z); FY2018: growth capex 623347106.5473784; upkeep 845135670.6726216; owner earnings 2804558823.3273783. Growth capex / owner earnings = 0.22226209033755562.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.738Z); FY2019: growth capex 811891254.007113; upkeep 3793334960.492887; owner earnings 1016016004.507113. Growth capex / owner earnings = 0.7990929772813722.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.738Z); FY2020: growth capex 304008891.9950409; upkeep 1839901617.4849591; owner earnings 4474063434.515041. Growth capex / owner earnings = 0.06794916890309881.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.738Z); FY2021: growth capex 1428365942.51; upkeep 551034000; owner earnings 7947420466.384. Growth capex / owner earnings = 0.1797269879644222.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.738Z); FY2022: growth capex 406943097.11; upkeep 628222254; owner earnings 10359563891.068. Growth capex / owner earnings = 0.03928187531724822.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.738Z); FY2023: growth capex 834498645; upkeep 667126493; owner earnings 13241923420.106. Growth capex / owner earnings = 0.06301944351474885.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.738Z); FY2024: growth capex 393117065.35079193; upkeep 795253934.6492081; owner earnings 13436388128.524792. Growth capex / owner earnings = 0.029257644360259565.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.738Z); FY2025: growth capex 0; upkeep 1932762969.97; owner earnings 9687738161.358. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.738Z); Dividend observations: [[2016,1174872146.76],[2017,1387430813.08],[2018,1911328212.4],[2019,2270366337],[2020,2418456436.84],[2021,3004207328],[2022,4773919306],[2023,6529901008],[2024,8253809000],[2025,8961776562.12]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 51% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000568.SHE SharesStats.PercentInsiders = 50.979 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 5.3% yearly over ten years; actual growth was 19.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:04.738Z); Ten-year compound average after fade. Initial solved rate -0.13336503425772334. Price 71.37; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.1114125254582994 → FY2025 6.583292044467129. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 34.40 per share

- 2016-11: CNY 34.29 per share

- 2016-12: CNY 33.00 per share

- 2017-01: CNY 33.69 per share

- 2017-02: CNY 37.39 per share

- 2017-03: CNY 42.19 per share

- 2017-04: CNY 46.50 per share

- 2017-05: CNY 48.22 per share

- 2017-06: CNY 50.58 per share

- 2017-07: CNY 55.37 per share

- 2017-08: CNY 55.28 per share

- 2017-09: CNY 56.10 per share

- 2017-10: CNY 60.88 per share

- 2017-11: CNY 59.28 per share

- 2017-12: CNY 66.00 per share

- 2018-01: CNY 65.31 per share

- 2018-02: CNY 58.41 per share

- 2018-03: CNY 56.75 per share

- 2018-04: CNY 60.23 per share

- 2018-05: CNY 69.10 per share

- 2018-06: CNY 60.86 per share

- 2018-07: CNY 54.93 per share

- 2018-08: CNY 43.09 per share

- 2018-09: CNY 47.51 per share

- 2018-10: CNY 38.06 per share

- 2018-11: CNY 41.00 per share

- 2018-12: CNY 40.66 per share

- 2019-01: CNY 42.67 per share

- 2019-02: CNY 51.24 per share

- 2019-03: CNY 66.58 per share

- 2019-04: CNY 75.43 per share

- 2019-05: CNY 70.63 per share

- 2019-06: CNY 80.83 per share

- 2019-07: CNY 80.64 per share

- 2019-08: CNY 96.88 per share

- 2019-09: CNY 85.22 per share

- 2019-10: CNY 87.20 per share

- 2019-11: CNY 81.75 per share

- 2019-12: CNY 86.68 per share

- 2020-01: CNY 82.98 per share

- 2020-02: CNY 74.80 per share

- 2020-03: CNY 73.55 per share

- 2020-04: CNY 79.19 per share

- 2020-05: CNY 85.30 per share

- 2020-06: CNY 91.12 per share

- 2020-07: CNY 118.02 per share

- 2020-08: CNY 149.55 per share

- 2020-09: CNY 142.68 per share

- 2020-10: CNY 172.55 per share

- 2020-11: CNY 183.33 per share

- 2020-12: CNY 226.16 per share

- 2021-01: CNY 257.70 per share

- 2021-02: CNY 235.21 per share

- 2021-03: CNY 225.02 per share

- 2021-04: CNY 255.58 per share

- 2021-05: CNY 274.95 per share

- 2021-06: CNY 235.94 per share

- 2021-07: CNY 171.10 per share

- 2021-08: CNY 170.00 per share

- 2021-09: CNY 221.58 per share

- 2021-10: CNY 228.95 per share

- 2021-11: CNY 230.05 per share

- 2021-12: CNY 253.87 per share

- 2022-01: CNY 216.31 per share

- 2022-02: CNY 216.60 per share

- 2022-03: CNY 185.88 per share

- 2022-04: CNY 210.73 per share

- 2022-05: CNY 214.80 per share

- 2022-06: CNY 246.54 per share

- 2022-07: CNY 222.20 per share

- 2022-08: CNY 234.20 per share

- 2022-09: CNY 230.66 per share

- 2022-10: CNY 156.35 per share

- 2022-11: CNY 186.01 per share

- 2022-12: CNY 224.28 per share

- 2023-01: CNY 237.00 per share

- 2023-02: CNY 250.00 per share

- 2023-03: CNY 254.79 per share

- 2023-04: CNY 226.24 per share

- 2023-05: CNY 204.03 per share

- 2023-06: CNY 209.57 per share

- 2023-07: CNY 241.11 per share

- 2023-08: CNY 232.30 per share

- 2023-09: CNY 216.65 per share

- 2023-10: CNY 214.61 per share

- 2023-11: CNY 207.50 per share

- 2023-12: CNY 179.42 per share

- 2024-01: CNY 146.80 per share

- 2024-02: CNY 175.75 per share

- 2024-03: CNY 184.59 per share

- 2024-04: CNY 186.10 per share

- 2024-05: CNY 174.85 per share

- 2024-06: CNY 143.49 per share

- 2024-07: CNY 130.66 per share

- 2024-08: CNY 119.28 per share

- 2024-09: CNY 149.70 per share

- 2024-10: CNY 135.51 per share

- 2024-11: CNY 138.73 per share

- 2024-12: CNY 125.20 per share

- 2025-01: CNY 115.55 per share

- 2025-02: CNY 126.46 per share

- 2025-03: CNY 129.72 per share

- 2025-04: CNY 123.74 per share

- 2025-05: CNY 116.92 per share

- 2025-06: CNY 113.40 per share

- 2025-07: CNY 122.90 per share

- 2025-08: CNY 137.19 per share

- 2025-09: CNY 131.92 per share

- 2025-10: CNY 134.54 per share

- 2025-11: CNY 135.88 per share

- 2025-12: CNY 116.22 per share

- 2026-01: CNY 120.90 per share

- 2026-02: CNY 110.50 per share

- 2026-03: CNY 104.68 per share

- 2026-04: CNY 100.10 per share

- 2026-05: CNY 91.04 per share

- 2026-06: CNY 77.52 per share

- 2026-07: CNY 90.93 per share

- 2026-08: CNY 77.00 per share

- 2026-09: CNY 72.28 per share

- 2026-10: CNY 70.40 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 18.58 per share, central CNY 20.68 per share, high CNY 23.48 per share

- FY2017: low CNY 27.80 per share, central CNY 36.82 per share, high CNY 42.22 per share

- FY2018: low CNY 34.55 per share, central CNY 47.51 per share, high CNY 54.73 per share

- FY2019: low CNY 31.81 per share, central CNY 35.30 per share, high CNY 39.96 per share

- FY2020: low CNY 40.04 per share, central CNY 52.59 per share, high CNY 60.36 per share

- FY2021: low CNY 50.57 per share, central CNY 68.20 per share, high CNY 78.47 per share

- FY2022: low CNY 67.18 per share, central CNY 77.65 per share, high CNY 88.45 per share

- FY2023: low CNY 123.95 per share, central CNY 159.84 per share, high CNY 184.13 per share

- FY2024: low CNY 150.88 per share, central CNY 209.27 per share, high CNY 241.83 per share

- FY2025: low CNY 124.00 per share, central CNY 172.03 per share, high CNY 198.82 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations