According to the Zhī Tōng Finance app, beer stocks fell today. As of press time, China Resources Beer (00291) fell 4.29% to HK$27.9; Bud APAC (01876) fell 3.62% to HK$8.79; Tsingtao Brewery (00168) fell 1.66% to HK$53.3.

SWhy pointed out that soft consumption and rainy weather since the beginning of 2024 have suppressed the demand for beer. Looking ahead to the peak season from June to August, the base pressure will decrease month-on-month. If the weather conditions are good, the monthly beer data is expected to improve month-on-month. In terms of costs, malt costs are expected to decline by double digits, while the comprehensive cost of glass bottles, aluminum cans, and other packaging materials is expected to remain stable.

Pudong International pointed out that the stock price of China Resources Beer has fallen by about 25% in the past 40 days. The weaker market sentiment is mainly due to concerns that weak dining channels and rainy weather across the country may put pressure on beer sales. The recent sharp decline in Moutai's ex-factory price has increased uncertainty about the development prospects of China Resources' baijiu business. The bank believes that the company's short-term stock price is significantly oversold. With the beginning of the peak season, the base falling, and the sunny weather in most parts of the country, we expect market sentiment to improve in the short term, helping China Resources Beer's valuation to rebound.