HK Stock Market Move | TSINGTAO BREW (00168) rose by 5%, with gradually stabilizing performance in both volume and price in the fourth quarter of last year. Lyon is optimistic about the continuous expansion of profit margins.

TSINGTAO BREW (00168) rose 5% at the end of the press release, up 5% to HK$58.8, with a turnover of HK$3.76 billion. On the news front, TSINGTAO BREW recently released its 2024 annual report, with operating income of RMB 32.138 billion, a year-on-year decrease of 5.3%; net profit attributable to shareholders was RMB 4.345 billion, a year-on-year increase of 1.81%; basic earnings per share was RMB 3.191; proposed dividend of RMB 2.2 per share. Looking at the fourth quarter of 2024, the company achieved revenues of RMB 3.179 billion, a year-on-year increase of 7.44%, with a net loss of RMB 645 million attributable to shareholders, slightly larger than the same period last year, and a non-recurring net loss of RMB 735 million attributable to shareholders, compared to a decrease of RMB 141 million in the same period last year. Beer sales in the fourth quarter increased by 5.6% year-on-year, with a 1.7% increase in ton price. Lyons believes that the revenue growth in the fourth quarter of Tsingtao Brewery last year is roughly in line with expectations, with an improving trend in average selling price compared to the third quarter, but the net profit margin is slightly lower than expected due to lower gross margins. The bank believes that the focus should be on the company's outlook for 2025, and believes that the decline in sales volume this year will turn into positive growth, while profit margin expansion is expected to continue as raw material prices fall. Goldman Sachs released a research report stating that Tsingtao Brewery's sales and recurring net profit last year met expectations. The bank raised its sales forecast for the group from 2025 to 2027 by 2% to 4%, and believes that compared to mass market products, high-end products will experience a more noticeable recovery this year.