Company Coverage
Tsingtao Brewery (168 HK): 3Q26: Net Profit Down 17%; Sales Volume Down 9%; ASP Up 4%
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$38.80
HK$55.50
+43.0%
HK$62.40
Analyst
Analyst
Highlights
- Tsingtao Brewery’s 3Q26 net profit fell 17% yoy, primarily due to a decline in revenue, driven by lower sales volume yet partially offset by ASP increase, as well as gross margin contraction amid rising unit COGS and higher SG&A expenses.
- 3Q26 sales volume was 19.7m hl, down 9% yoy. By brand, sales volume of the Tsingtao brand and secondary brand declined 3% and 18% yoy, respectively. By category, sales volume of mid-range to high-end products increased 1% yoy, while that of other products dropped 17% yoy.
- Maintain BUY, cut target price by 11% to HK$55.50.
Analysis
- 3Q26 net profit fell 17% yoy. Tsingtao Brewery reported 9M26 revenue of Rmb28,035m (-5% yoy). Gross margin was 44.0% (+0.4ppt yoy). EBIT totalled Rmb6,062m (-4% yoy), and EBIT margin was 21.6% (+0.1ppt yoy). Net profit was Rmb5,055m (-4% yoy), and net margin was 18.0% (+0.1ppt yoy).
Highlights
- Tsingtao Brewery’s 3Q26 net profit fell 17% yoy, primarily due to a decline in revenue, driven by lower sales volume yet partially offset by ASP increase, as well as gross margin contraction amid rising unit COGS and higher SG&A expenses.
- 3Q26 sales volume was 19.7m hl, down 9% yoy. By brand, sales volume of the Tsingtao brand and secondary brand declined 3% and 18% yoy, respectively. By category, sales volume of mid-range to high-end products increased 1% yoy, while that of other products dropped 17% yoy.
- Maintain BUY, cut target price by 11% to HK$55.50.
Analysis
- 3Q26 net profit fell 17% yoy. Tsingtao Brewery reported 9M26 revenue of Rmb28,035m (-5% yoy). Gross margin was 44.0% (+0.4ppt yoy). EBIT totalled Rmb6,062m (-4% yoy), and EBIT margin was 21.6% (+0.1ppt yoy). Net profit was Rmb5,055m (-4% yoy), and net margin was 18.0% (+0.1ppt yoy).
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$38.80
HK$55.50
+43.0%
HK$62.40
Analyst
Analyst
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