Glonghui, May 14 | Guotai Junan released a report that gave Tsing Beer an “increase in share” rating for the first time. The compound profit growth rate is expected to be 13.48% from 2024 to 2026. According to the report, there is a clear trend of structural upgrading, declining costs, and a stable competitive pattern in the beer industry. In this context, it is expected that returns to the company's shareholders will gradually increase, category expansion and large single products will continue to gain strength, and tonnage prices and profit margins may reach new highs. The bank expects the Group's earnings forecasts for 2024 to 2026 to be $3.66, 4.16 and $4.71, respectively. According to the bank, during the downward cost cycle last year, the company's cost pressure was relieved. Under the structural upgrade effect, gross margin reached 40.4% in the first quarter, while the overall cost ratio declined in the context of competitive landscape optimization. The deducted non-net interest rate reached 14.91%, reaching a record high. As the regional market along the Yellow River enters a harvest period, profits will continue to be released. Combining cost and competitive advantage analysis, the bank expects profit margins to reach another record high.