Lex is a premium daily commentary service from the Financial Times. It helps readers make better investment decisions by highlighting key emerging risks and opportunities.
So how much do you know about the state of mind of Chinese cognac drinkers? And are you confident enough to back your view with cash? If the answers are “plenty” and “yes,” then go ahead and buy shares in Rémy Cointreau, which reported results on Tuesday. Exposure to China’s wealthier consumers has been a boon to Rémy, which specialises in high-end cognac. Profit growth has averaged 20 per cent for the past four years. That is better than rivals have managed, so Rémy’s shares, which were rated in line with Diageo and Pernod Ricard four years ago, now enjoy a premium. They trade on 23 times forecast earnings, against 18 for the other two.