As of press release, China Resources Breweries rose 4.5% to HK$38.35, Budweiser Asia Pacific (01876) rose 4.59% to HK$12.3, and Tsingtao Brewery (00168) rose 1.85% to HK$55.15.
The Zhitong Finance App learned that China Resources Brewery (00291) rose more than 4% to lead beer stocks. As of press release, China Resources Beer rose 4.5% to HK$38.35, Budweiser Asia Pacific (01876) rose 4.59% to HK$12.3, and Tsingtao Brewery (00168) rose 1.85% to HK$55.15.
Guotai Junan's March 18 research report pointed out that after Oktoberfest, inventory levels improved month-on-month, and the structural rise continued. Due to the base effect, the sector's sales growth rate is expected to recover quarterly in the second quarter of 2024. Beer stock prices fully reflect the market's conservative expectations of a high sales base and profit adjustments. The sector's risk has been fully released, and allocation value is prominent.
Huachuang Securities said that the beer was upgraded to the central market, the profit improvement was clear, and the recommendation continued to be reiterated. Currently, excessive market concerns about high-end have led to a decline in valuations, but in reality, the high-end approach is more than halfway, which is the core driver of the medium- to long-term profit growth of leading companies. Looking at 24 years, profit forecasts are highly reliable, driven by cost dividends. Currently, from a PE perspective, Huarun and Tsing Beer 24E are about 15 and 20 times, respectively. At the same time, the beer company's cash flow is stable, and the bottom of the valuation reaffirms the recommendation.