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

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

9M Revenue

RMB 28.04 bln

9M Net Income Attributable

RMB 5.05 bln


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


Reuters Recommended Reads

  • 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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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