China's Tsingtao Brewery nine-month revenue falls on domestic market pressure

Overview

• China beer maker's nine-month revenue fell 4.5% yr/yr amid domestic market pressure

• Net profit attributable to shareholders dropped 4.2% yr/yr for nine-month period

• Company cites complex market environment and pressure on domestic beer sales for declines

Outlook

• Tsingtao Brewery aims to strengthen growth in emerging markets and consolidate advantaged markets

• Company plans to advance product innovation and structural optimization to support future growth

Result Drivers

• DOMESTIC MARKET PRESSURE – Domestic beer-market sales pressure weighed on Q3 revenue, which fell 5.6% yr/yr to RMB8.38 bln

• DIGITAL AND MODERN RETAIL – Online, instant-retail and modern-retail channel volumes reached record highs, indicating broader consumer reach

• PREMIUM PRODUCT MIX – Mid-to-high-end product volume rose 2% yr/yr to 2.994 mln kilolitres in the first nine months, while white beer posted double-digit growth

Company press release: Full Story

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the brewers peer group is "buy"

• Wall Street's median 12-month price target for Tsingtao Brewery Co Ltd is CNY66.80, about 34.7% above its October 28 closing price of CNY49.59

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

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• Oct 28 - New CEO says Heineken must do better even as Q3 sales top forecast

• Oct 28 - Beijing Yanjing Brewery Q3 profit rises

• Oct 28 - Danish Brewer Carlsberg files updated papers for India unit's IPO

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)