Best-Performing China Distiller Sells ‘Firewater’ for Pennies
- Shares soar 134 percent this year, far outperforming peers
- Shunxin remains undervalued due to liquor potential: analysts
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The best-performing Chinese distiller in the domestic stock market is a Beijing-based company that sells cheap, tongue-torching hard liquor for as little as $0.6 a bottle.
Beijing Shunxin Agriculture Co. -- which derives more than half of its revenue from the production and sale of the fiery spirit known as baijiu -- is trading at a more than 40 percent premium to its domestic rivals. As the firm shifts its focus to baijiu further away from pork and real estate to capture booming domestic consumer demand, bulls say the stock still holds long-term upside potential even though it has more than doubled this year.