Bank of America Securities issued a research report stating that Tsingtao Brewery's (00168) performance was largely in line with expectations, positioning it as a dividend investment with potential catalysts. The firm largely maintained its earnings per share forecasts for fiscal years 2026 and 2027, while reducing the target price from HK$63.5 to HK$59.5. It reiterated a "Buy" rating, citing Tsingtao Brewery's strong portfolio of premium brands, a solid dividend yield nearing 6% for 2025, and three catalysts that could drive a potential revaluation in the second quarter. These include a recovery in the food service channel, the peak season in the second quarter, and the World Cup in June. The report noted that in 2025, Tsingtao Brewery's revenue, net profit, and core net profit increased by 1%, 5.6%, and 4.5% year-on-year, respectively. However, in the fourth quarter of 2025, these figures declined by 2.3%, 6.4%, and 7.7%, which was broadly consistent with expectations.
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