Beer stocks picked up in early trading. As of press release, China Resources Brewery (00291) rose 6.81% to HK$34.5; Tsingtao Brewery shares (00168) rose 5.73% to HK$54.4; and Budweiser Asia Pacific (01876) rose 2.99% to HK$10.34.
The Zhitong Finance App learned that beer stocks picked up in early trading. As of press release, China Resources Brewery (00291) rose 6.81% to HK$34.5; Tsingtao Brewery shares (00168) rose 5.73% to HK$54.4; and Budweiser Asia Pacific (01876) rose 2.99% to HK$10.34.
Guotai Junan released a research report saying that it is expected that after April 2024, the high base effect of leading beer companies will weaken. Under the recovery of the economy, the industry's sales growth rate may recover quarterly. Currently, beer sales and inventory levels are normal in various regions, weak demand is not changing the trend of beer product structure upgrading. The rise in tonnage prices of leading 1Q24 companies continues. It is expected that the revenue side growth rate of the 1Q24 industry will decline slightly, and the profit side growth rate will remain flat.
Dongwu Securities, on the other hand, said that beer sales were good in 2024Q1. This year, various wine companies will make structural improvements and profit protection their strategic priorities this year to further cultivate their strong markets. There is room for price increases and fee reductions for some products, and structural upgrades will continue. At the same time, companies tend to control spending in competitors' strong markets to improve cost efficiency. Profitability is expected to continue to improve. With the pro-cyclical scenario recovering, the 2024 peak season is worth looking forward to. Currently, the stock prices of high-quality stocks with performance support in the sector are already at the lower limit of historical valuation, and there is plenty of room for improvement.