[ET Net News Agency, 30 March 2021] Daiwa Research lifted its target price for Tsingtao
Brewery (00168) to HK$78 from HK$70 and upgraded its rating to "outperform" from "hold" as
the share price has retreated by 16% year-to-date.
The research house said Tsingtao's 2020 net profit of CNY2.20bn was largely in line with
Daiwa's estimate. It revised up its 2021-22 revenue forecasts by 4-8% on higher ASP
assumptions, and lowered its 2021 EPS estimate by 2% on share incentive expenses, but
raised its 2022 EPS by 2% on an improving gross margin.
Together with increasing barley and packaging cost pressure in 2021, Daiwa forecast the
EBTIDA margin to remain flat at 12.9% for 2021. (KL)