News: TWE Australia's Treasury Wine to make premium Penfolds in California amid U.S. reset, page-14

As per MS report....

Chinese 'Peer' Points to Healthy
Results

We believe TWE's Chinese business shares a similar end-customer to Moutai
(covered by Lillian Lou). As Lillian notes here Kweichow Moutai Company Ltd.:
2Q18 Preliminary Results Indicate Robust Sales Growth (16 Jul 2018), Moutaihas
recorded strong 2Q18 sales (June period end) of +43% YoY which represents an
acceleration on recent quarters (4Q17 29%, 1Q18 +31%). Demand for high-end
liquor is strong which we think is a reasonable cross read for TWE's portfolio in
China.
Clearly, the current political malaise will slow TWE's FY18 sales in China, but
given strong end-demand we think there is likely a 'catch-up' in July/August. We
keep OW.
SP target $20...