Shares of Kweichow Moutai Co. Ltd. closed down 4.5% on Jan. 2 after the Chinese liquor company said it expects to record full-year 2019 net profit that will miss analysts' expectations, Reuters reported.
The baijiu maker said it anticipates full-year 2019 net profit to jump 15% year over year to 40.5 billion Chinese yuan, Reuters reported. The S&P Global Market Intelligence GAAP net income estimate for 2019 is 42.54 billion yuan, up nearly 21% from 2018's figure of 35.20 billion yuan.
The announcement sent shares of Kweichow Moutai, which nearly doubled during the course of 2019, down as much as 5.6% in intra-day trading. The stock closed 4.5% lower at 1,130 yuan.
Kweichow Moutai reportedly said 2019 revenue would rise 15% to about 88.5 billion yuan, close to market expectations of 88.79 billion yuan, but the company expects to post more modest sales growth of 10% in 2020.
The announcement comes less than a week after the distiller said it plans to open a new e-commerce platform after abruptly shutting an older platform.
As of Jan. 1, US$1 was equivalent to 6.96 Chinese yuan.