Jefferies analyst Anne Ling has maintained their bullish stance on TSGTF stock, giving a Buy rating on April 22.
Anne Ling has given her Buy rating due to a combination of factors including Tsingtao Brewery Co’s strong financial performance and effective cost management strategies. Despite sales volumes that were lower than expected, the company has demonstrated exceptional control over operational expenses, contributing to a net profit that exceeded forecasts. This was further bolstered by successful premiumization efforts and a decrease in raw material costs, which led to an improved gross profit margin.
Ling’s confidence in Tsingtao is also reflected in the adjustments made to future net profit forecasts, which, while acknowledging a slower recovery in volume and average selling price, still show an increase. Additionally, concerns about past food hygiene issues are expected to diminish in the latter half of the year, setting the stage for continued financial growth. The maintenance of a Buy rating with a stable price target suggests Ling’s optimism about Tsingtao’s valuation and its ability to navigate through temporary challenges.
According to TipRanks, Ling is a 3-star analyst with an average return of 2.6% and a 44.55% success rate. Ling covers the Consumer Cyclical sector, focusing on stocks such as Chow Tai Fook Jewellery Group, Haidilao International Holding, and Samsonite International SA.
In another report released on April 22, CLSA also maintained a Buy rating on the stock with a HK$62.00 price target.
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Tsingtao Brewery Co (TSGTF) Company Description:
Tsingtao Brewery Co., Ltd. engages in the manufacture and sale of beer and related products. It operates through the following business segments: Shandong; South China; North China; East China; Southeast; Hong Kong, Macau, and overseas; and Finance. The Shandong segment engages in the production and sale of beer in Shandong and surrounding areas. The South China, North China, East China, and Southeast segments engage in the production and sale of beer in the respective areas. The Hong Kong, Macau, and overseas segment engages in the sale of beer in Hong Kong, Macau, and overseas. The Finance segment handles the financial management and financial transactions such as payment and collection of member units. The company offer the verities of beer include Great ocean beer, Huiquan beer, Tsingtao draft beer, Tsingtao dark beer, Tsingtao beer premium and Tsingtao beer. Tsingtao Brewery was founded in August 1903 and is headquartered in Qingdao, China.
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