China’s Thirst for Australian Wine Drives Treasury Share Surge
(Bloomberg) -- Treasury Wine Estates Ltd. shares rose the most in 18 months after Australia’s industry group said the country’s exports to China surged 55 percent in the past 12 months.
Australia’s only listed winemaker closed 5.5 percent higher at A$19.34, its biggest gain since January 2017. The Melbourne-based firm has gained 21 percent year to date, beating the 3.3 percent rise on the benchmark S&P/ASX 200 index.
Wine Australia said Tuesday the nation’s total exports jumped 20 percent to A$2.76 billion ($2 billion), the steepest climb in 15 years, led by a surge in Chinese demand. That’s despite concerns that strained diplomatic ties between Australia and China have seen shipments delayed by Chinese customs authorities.
Treasury, whose revenue from Asia has almost tripled since 2014, is expected to report its 2018 full-year results on Aug. 16. Analysts estimate net income of A$357.1 million, a 22 percent increase on last year.
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