CCB International: Raising the target price of Tsingtao Brewery (00168) shares to HK$55, rating “neutral”

The Zhitong Finance App learned that CCB International released a research report saying that the performance of Tsingtao Brewery Co., Ltd. (00168) was weaker than expected last year. It is believed that by adjusting channel inventory last year, the group will record an increase in sales volume this year. Currently, inventory is at a healthy level, and it is expected that the group can work on a relatively easy basis. The bank expects the company's revenue to rise 2.4% year on year, benefiting from a 0.2% increase in sales volume and a 2.3% increase in average selling price, raising its target price from HK$49.2 to HK$55, maintaining a “neutral” rating.

According to this market, the increase in sales of high-end beer, including pure draft beer and white beer, will continue to outperform overall sales growth. Benefiting from good barley prices and product portfolio upgrades, the Group's gross margin is expected to increase 0.6 percentage points to 40.8% year on year this year.