(Yicai Global) March 1 -- Shares of China’s most valuable listed company, Kweichow Moutai, stopped declining after a government report showed profit growth at its parent company was better than expected last year.

The shares [SHA: 600519], which had skidded over the past three weeks after reaching multiple historic highs this year, rose 1.7 percent to end today at CNY2,158 (USD334) apiece. The liquor maker now has a market capitalization of CNY2.67 trillion (USD412.6 billion).

Net profit at parent Kweichow Moutai Group jumped 18.2 percent to CNY74.5 billion (USD11.5 billion) in 2020 from the year earlier, surpassing its 10 percent target, Guizhou Daily reported on Feb. 27, citing a local government report. Revenue also topped a 10 percent goal, gaining 13.7 percent to CNY114 billion (USD17.6 billion).

Even if the country's liquor market was resilient in the face of the Covid-19 pandemic last year, shares of Chinese distillers, also including Wuliangye Yibin and Luzhou Laojiao, have been falling since the Chinese New Year holiday last month.

Wuliangye Yibin [SHE: 000858] gained 3.2 percent to CNY289.02 [USD13.78], while Luzhou Laojiao [SHE: 000568] rose 1.3 percent to CNY238.35.

A brief price correction is normal after two years of sharp gains, Zhongtai Securities said, adding that high-quality distillers still have upside considering China's consumption upgrades.

Baijiu makers' shares are expected to rise again after their quarterly results show solid business performances and April’s sugar and wine industry fairs, according to Huachuang Securities.

Editor: Emmi Laine, Xiao Yi