Sichuan Swellfun Co Ltd and the Current State of the White Spirits Market
Sichuan Swellfun Co Ltd, a prominent Chinese company based in Chengdu, specializes in the production and marketing of spirits. The company, which also manufactures antibiotics and engages in printing and packaging operations, is listed on the Shanghai Stock Exchange. As of June 15, 2025, the company’s stock closed at 40.95 CNY, with a market capitalization of 20,933,386,738 CNY. The company’s price-to-earnings ratio stands at 15.0085, and its stock has experienced significant fluctuations over the past year, with a 52-week high of 63.33 CNY on November 12, 2024, and a low of 30.31 CNY on September 17, 2024.
Recent Market Movements
The white spirits sector has seen notable activity recently. On June 18, 2025, major stock indices turned positive, with white spirits stocks leading the gains. Notably, companies like Huatiao Jiu and Jinzhong Jiu reached their daily price limits, while others such as Jiu Gui Jiu, Jinsi Yuen, Shuidingfang, and Shedie Jiu followed suit.
Earlier in the week, on June 16, 2025, white spirits stocks experienced a downturn, with eight companies seeing year-to-date declines exceeding 20%. Among these, Yingjia Gong Jiu saw a decline of over 28%, while Jiu Gui Jiu, Jinzhong Jiu, Shuidingfang, and Shedie Jiu also faced significant drops.
Market Challenges and Opportunities
Despite the recent gains, the white spirits market has faced challenges. Over the past year, the sector has struggled, with the Shenwan White Spirits Index falling by 10.73% as of June 16, 2025. This decline marks a new low since September 24, 2024. Major players like Guizhou Maotai and Wuliangye have seen their stock prices hit new lows, reflecting broader market pressures.
The sector’s struggles are attributed to a combination of factors, including high consumer demand for new consumption trends, which has not translated into strong performance for white spirits stocks. Efforts by leading companies to control costs, optimize marketing, and improve inventory management have not yet restored market confidence.
Investor Sentiment
Investor sentiment in the white spirits sector remains cautious. On June 16, 2025, Shuidingfang saw a significant increase in financing purchases, with a growth rate exceeding 50% over two consecutive days. This suggests that investors are actively building positions, despite the sector’s volatility.
Overall, the white spirits market is navigating a complex landscape, with recent gains offering some optimism but underlying challenges persisting. Investors are advised to remain vigilant of potential “value traps” as the sector continues to search for a bottom.