YWR: April QARV
Apologies for this months QARV data.
I haven’t fixed the data bug yet…
The top QARV rankings are still flooded with Chinese companies scoring well on ROE with low valuations.
I have the engineers writing some code to keep Chinese stocks from showing up in the system, but we haven’t figure it out yet. So, for now the list is global and unfiltered.
As always there is link at the bottom of the post to the full April QARV rankings on over 3,000 stocks.
QARV Top 20 Rankings
Chinese Liquor Stocks
I’ve mentioned this before, but Chinese liquor stocks screen extremely well. Best ranked globally in fact. The data says they have 25-30% ROE’s, low earnings variance, net cash, and P/E’s of 15x. As always, double check this with your own work.
And while we may not have heard of these stocks, the brands are some of the most valuable in the world. You should know the top 3.
Wuliangye has a movie you can watch about the brand and the global awards they’ve won.
The
also did work on the Baiju stocks in an earlier post (Ganbei!).
Blind Squirrel highlights a Chinese cultural shift towards local brands and away from imported spirits and wine.
Herbert Smith flagged the same trend in their China 2025 Consumer Trends report.
There is a growing preference for localized products among Chinese consumers, particularly those with traditional Chinese trade names (国货) or that embody traditional Chinese culture (国风). This trend reflects a sense of national pride and cultural identity, with consumers increasingly supporting homegrown brands that resonate with their heritage.
From Baby Vomit to Good Sh*t
And baiju brands aren’t just popular in China. Baiju is starting to be trendy in New York cocktail bars.
“When I think about the baijiu served eight, 10 years ago during a tasting at Tales of the Cocktail, it was not good. It was real bad. It kind of tasted like baby vomit,” Simó says. “But we’ve hit a tipping point where they’re actually exporting good sh*t and you’re starting to see real quality come from the greater category as a whole.”
A new untouchable?
And isn’t it a good time to be working on Chinese baby vomit stocks with 25% ROE’s when consumer confidence is the lowest ever?
The charts look pretty good too. Maybe these stocks are ready for the next leg up? If China is trying to grow their consumer economy, could this be the new sector everyone wants to own?
And if you want a Chinese beer stock with Danish oversight, there is Chongqing Breweries (60% owned by Carlsberg).
Similar chart.
Below is a link to the full QARV rankings with all the data on ROE’s, net debt, earnings variance and valuations.
Also a link to the handy QARV Data app to easily filter and sort the data.
