Yamato: Raises target price of TSINGTAO BREW (00168) to 70 Hong Kong dollars, upgrades rating to "buy"

Yamato released a research report stating that the target price of TSINGTAO BREW (00168) has been raised from 52.5 Hong Kong dollars to 70 Hong Kong dollars, equivalent to a forecasted P/E ratio of 18 times (previously valued at 14 times), and the rating has been upgraded from "hold" to "buy", indicating it as the preferred choice in the beer industry. The report noted that Tsingtao's factory sales volume in March may have increased by about 10% year-on-year, significantly outperforming the Chinese beer industry. The firm expects Tsingtao Brewery's revenue to grow by 4% in the first quarter, mainly driven by a 3% year-on-year increase in sales volume and a 1% year-on-year increase in average selling price. At the same time, the firm raised its earnings per share forecast for 2025 to 2026 by 5% to 11% to reflect the higher forecasted growth in sales volume and average selling price in 2025.