The Zhitong Finance App learned that beer stocks continued to decline. As of press release, Tsingtao Brewery shares (00168) fell 5.45% to HK$56.35; China Resources (00291) fell 3.08% to HK$33; and Budweiser Asia Pacific (01876) fell 1.55% to HK$10.18.

According to the news, according to data from the Bureau of Statistics, the output of beer companies above the scale in April was 2.764 million kiloliters, down 9.1% year on year. It has been declining year on year for two consecutive months. The cumulative production in January-April increased 2.1% year on year. Tianfeng Securities pointed out that the April decline was due to torrential rain in the southern+relatively lackluster dining. The bank believes that the April data has already been implemented, and Q2 has entered the peak season preparation and new stage. The July-August Olympics are catalyzed, and the drop in barley costs will also release dividends, focusing on recommending leading undervalued Hong Kong stocks.

Shengang Securities, on the other hand, pointed out that the decline in production in a single month is expected to be mainly affected by the high base for the same period, more extreme weather in the south, and lower temperatures in some regions compared to the same period. In the future, with the arrival of the peak summer season, the year-on-year decline in production is expected to slow down, and the structural upgrades of leading companies will continue. There will be favorable sporting events during the year. Looking ahead to the whole year, sales can still be expected to remain stable. The cost of barley and packaging materials in the industry is expected to drop year-on-year throughout the year. Active loss reduction actions by enterprises can support advantageous companies to achieve relatively rapid net profit growth, and it has good investment value under current valuations.