Tsingtao Brewery Co Ltd Class A

600600: XSHG (CHN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
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Tsingtao Earnings: Sales Volume Growth Proves Disappointing; Cutting Fair Value Estimate by 3%

Jacky Tsang

Oct 29, 2024

Narrow-moat Tsingtao Brewery's third-quarter 2024 revenue and net income trailed our estimates, mainly dragged by weak sales volume trend. Operating expenses ratio also increased, which further pressured net margin. We cut our 2024-28 revenue and net income estimates by 5%-7% due to lower sales volume assumptions, but our margins outlook remains unchanged. As a result, we reduce our fair value estimate to HKD 71 per H-share (CNY 65 per A-share) from HKD 73 (CNY 67). Our top pick in the sector remains Budweiser APAC, due to its stronger prospects in monetizing the long-term beer premiumization trend in China.

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Tsingtao Brewery Co Ltd Class A

Tsingtao Earnings: Sales Volume Growth Proves Disappointing; Cutting Fair Value Estimate by 3%

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