Luzhou Laojiao stock: Q3 profit fell 57% as sales declined 37%

Published on 10/31/2026 at 01:56 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Luzhou Laojiao stock faces a weak reporting quarter. Analysts see inventory clearance and a possible recovery in 2027.

Weak results meet recovery hopes

Third-quarter revenue and profit fell sharply as Luzhou Laojiao worked through channel inventory.
Analysts expect destocking and stable Guojiao 1573 pricing to support a possible recovery in 2027.
The company remains a major Chinese strong-aroma baijiu producer with a broad premium portfolio.

Luzhou Laojiao stock, Chinese baijiu, Q3 2026 results, inventory destocking, Guojiao 1573, Illustration mit AI erstellt.

Luzhou Laojiao's third-quarter results underscored the pressure on China's premium baijiu market. The company reported the figures on Thursday, October 29, 2026, while a research summary published by Futu said the results were in line with Shenwan Hongyuan Research's expectations.

Revenue in the third quarter reached RMB 4.195 billion, down 37.14 percent year over year. Net profit attributable to shareholders fell 57.03 percent to RMB 1.332 billion. For the first nine months, revenue declined 36.58 percent to RMB 14.668 billion, while attributable net profit dropped 47.31 percent to RMB 5.671 billion.

Destocking remains central

The research summary said channel inventory continued to clear during 2026 and that sales momentum improved in the second half of the year. It cited growth in consumer QR-code scans and dealer bottle openings as signs that underlying demand may be running ahead of reported results.

The earnings pressure was also visible in profitability. Third-quarter net profit margin attributable to owners was 31.7 percent, while gross margin stood at 79.4 percent. The report linked the margin pressure primarily to product-mix changes and higher spending related to channels.

Shenwan Hongyuan lowered its 2026-2028 earnings forecasts but maintained a Buy rating, according to the summary. Its thesis is that inventory has been reduced, Guojiao 1573 pricing has remained stable and 2026 could mark a low point before a gradual improvement in 2027. That outlook remains exposed to weaker economic activity, soft baijiu demand and food-safety risks.

Business and competitive position

Luzhou Laojiao produces and sells Chinese baijiu, with a focus on strong-aroma spirits and brands including Guojiao 1573, 1952 and Tequ, primarily serving the domestic Chinese market. The company is headquartered in Luzhou, Sichuan, China, and describes itself as a pioneer of strong-aroma distilling. In the premium baijiu market, it competes with Kweichow Moutai, Wuliangye Yibin and Shanxi Fen Wine; Luzhou Laojiao is a major specialized strong-aroma producer with a broad product portfolio alongside those larger national brands. Its official company profile highlights a dual-brand and three-product-line strategy built around flagship offerings.