Tsingtao Brewery Co (0168) AI Stock Analysis

• Market Cap: $92.14B
• Dividend Yield: 3.85%
• Average Volume (3M): 4.99M
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.02
• Revenue Growth: -4.38%
• EPS Growth: -1.21%
• Country: HK
• Employees: 29,870
• Sector: Consumer Defensive
• Sector Strength: 82
• Industry: Beverages - Alcoholic
• EPS (TTM): 3.53
• Shares Outstanding: 655,069,150
• 10 Day Avg. Volume: 4,105,395
• 30 Day Avg. Volume: 4,993,574
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $68.85
• Price Target Upside: 25.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Tsingtao Brewery Co's stock is underpinned by strong financial performance, marked by robust profitability and a solid balance sheet. Technical indicators suggest a bullish trend, although some caution is warranted due to potential overbought conditions. The valuation is reasonable, with an attractive dividend yield enhancing investor appeal. Overall, the stock is well-positioned in the alcoholic beverages industry, despite a slight revenue decline in recent periods.

Positive Factors

Cost Management

The company has benefited from favorable raw material costs and disciplined expense control, which could help expand gross and EBITDA margins.

Earnings

Tsingtao’s Q1 saw a strong performance, with earnings before interest and tax (EBIT) beating estimates by 2.3%.

Sales Strategy

Tsingtao has expanded its online sales volume significantly and broadened its delivery service, catering to increasing consumer demand for diverse drinking occasions.

Negative Factors

Future Earnings

Earnings forecasts for FY25F have been cut by 5% due to slower average selling price (ASP) and volume growth.

Market Risks

Key risks for Tsingtao include lower-than-expected ASP growth, significant sales volume decline due to weather or market share changes, and higher-than-expected raw material costs.

Revenue

Tsingtao's price/mix was weaker than expected, leading to a miss on the revenue line for the quarter.

Tsingtao Brewery Co Business Overview & Revenue Model

Company Description

Tsingtao Brewery Co (0168) is one of the largest and most renowned beer producers in China, with a significant presence in the global market. Established in 1903, the company is headquartered in Qingdao, Shandong Province. Tsingtao Brewery's core products include a wide range of beer offerings, including its flagship Tsingtao Beer, which is known for its distinctive taste and quality. The company operates in the alcoholic beverage sector and is involved in manufacturing, marketing, and distributing its products both domestically and internationally.

How the Company Makes Money

Tsingtao Brewery Co generates revenue primarily through the production and sale of its beer products. The company's revenue streams are largely based on domestic sales within China, which remains its largest market, as well as international sales to over 100 countries, contributing to its global footprint. Tsingtao Brewery employs a diverse distribution network, including direct sales, distributors, and retail partnerships, to reach a wide customer base. Additionally, the company benefits from strategic partnerships and brand collaborations that enhance its market presence and brand recognition. Seasonal promotions, product innovations, and a focus on premium product lines also play a role in driving sales and increasing profitability for the company.

Tsingtao Brewery Co Financial Statement Overview

Summary

Tsingtao Brewery Co exhibits strong financial health with consistent revenue growth until 2023 and stable margins. The balance sheet shows high equity and low debt, indicating financial stability and low risk. Despite a slight revenue decline in 2024, the company maintains healthy profitability and cash flow.

Income Statement

Tsingtao Brewery Co exhibits strong financial health with consistent revenue growth from 2019 to 2023, peaking in 2023 before a slight decline in 2024. Gross and net profit margins have been stable, reflecting solid profitability. The EBIT and EBITDA margins are robust, indicating efficient operations. However, the year-over-year revenue decline from 2023 to 2024 suggests potential challenges in maintaining growth momentum.

Balance Sheet

The company's balance sheet is strong, characterized by high stockholders' equity and minimal debt, leading to a very low debt-to-equity ratio. Return on equity is healthy, showcasing effective use of equity capital. The equity ratio is solid, highlighting financial stability and low leverage risk. These factors indicate a well-capitalized company with low financial risk.

Cash Flow

Tsingtao Brewery Co has demonstrated substantial free cash flow generation, with significant growth in free cash flow from 2023 to 2024. The company maintains a strong operating cash flow to net income ratio, indicating efficient cash conversion. However, fluctuations in investing and financing cash flows suggest some variability in cash management strategies, which could impact future liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
32.14B	33.94B	32.17B	30.17B	27.76B
	Gross Profit
12.93B	13.12B	11.85B	11.08B	11.22B
	EBIT
5.84B	5.74B	5.00B	4.45B	3.25B
	EBITDA
7.09B	6.90B	6.10B	5.61B	4.40B
	Net Income Common Stockholders
4.34B	4.27B	3.71B	3.16B	2.20B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.00B	24.79B	20.54B	17.38B	20.36B
	Total Assets
51.42B	49.26B	50.31B	46.56B	41.51B
	Total Debt
68.24M	63.39M	373.08M	406.99M	861.20M
	Net Debt
-17.91B	-19.22B	-17.48B	-14.19B	-17.61B
	Total Liabilities
21.56B	21.00B	24.04B	22.77B	20.15B
	Stockholders Equity
29.06B	27.45B	25.49B	23.00B	20.62B
Cash Flow		Free Cash Flow
3.01B	1.16B	3.10B	4.41B	3.66B
	Operating Cash Flow
5.15B	2.78B	4.88B	6.04B	4.95B
	Investing Cash Flow
-7.42B	-3.46B	-2.20B	-10.25B	-1.49B
	Financing Cash Flow
-2.98B	-2.87B	-1.68B	-1.61B	-356.09M

Tsingtao Brewery Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 54.65
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0168, the sentiment is Neutral. The current price of 54.65 is below the 20-day moving average (MA) of 57.63, below the 50-day MA of 55.51, and above the 200-day MA of 51.70, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 43.19 is Neutral, neither overbought nor oversold. The STOCH value of 29.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0168.

Tsingtao Brewery Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0168	79 Outperform	$92.14B	15.97	14.90%	3.85%	-4.38%	-1.21%
0322	75 Outperform	$79.22B	19.57	26.55%	2.08%	-1.69%	17.32%
0392	75 Outperform	HK$40.00B	6.98		4.69%	―	―
0291	70 Outperform	HK$89.38B	17.39	15.25%	2.83%	-3.20%	-11.50%
Sector *	64 Neutral	$8.87B	14.81	5.05%	174.26%	3.56%	3.68%
0285	60 Neutral	$74.81B	16.17	13.83%	1.74%	34.21%	4.11%
0336	48 Neutral	HK$7.49B	68.85	-3.15%	0.46%	0.17%	-260.67%

Tsingtao Brewery Co Corporate Events

Tsingtao Brewery Acquires Jimo Yellow Wine to Expand Market Reach

Tsingtao Brewery Company Limited has announced its acquisition of the entire equity interest in Shandong Jimo Yellow Wine Factory Company Limited. This strategic move, valued at RMB 665 million, will make Jimo Yellow Wine a wholly-owned subsidiary of Tsingtao, enhancing its market positioning and expanding its product offerings. The acquisition aligns with market price levels and business principles, ensuring no harm to the interests of the company and its minority shareholders. The completion of the acquisition is contingent upon certain conditions being met, and during the transitional period, Jimo Yellow Wine will continue its normal operations.

Tsingtao Brewery Reports Revenue and Profit Growth in Q1 2025

Tsingtao Brewery Company Limited’s unaudited first quarterly report for 2025 reveals a 2.91% increase in revenue and a 7.08% rise in net profit attributable to shareholders compared to the same period last year. Despite a decrease in net cash flow from operating activities by 37.28%, the company shows a slight improvement in its weighted average return on net assets, indicating stable financial performance amidst market challenges.

Tsingtao Brewery Announces 2024 AGM with Key Resolutions

Tsingtao Brewery Company Limited has announced its 2024 Annual General Meeting (AGM) scheduled for May 20, 2025, in Qingdao, China. The AGM will address several key resolutions, including the approval of the company’s 2024 financial and work reports, profit distribution, and the re-appointment of Deloitte Touche Tohmatsu as the auditor. Additionally, the meeting will consider amendments to the company’s articles of association, remuneration plans, and the election of directors for the eleventh board session. These resolutions are crucial for the company’s governance and strategic direction, impacting stakeholders and ensuring continued compliance and operational efficiency.

Tsingtao Brewery Proposes Governance Amendments in Response to New Regulations

Tsingtao Brewery Company Limited announced proposed amendments to its Articles of Association and related documents to align with new regulatory requirements under the revised Company Law of the People’s Republic of China. Key changes include the abolishment of the Supervisory Committee, the establishment of an audit and internal control committee, and provisions for hybrid shareholder meetings and E-voting. These amendments aim to strengthen shareholder rights and modernize the company’s governance structure, with no impact on existing shareholder rights. The proposed changes will be subject to approval at the company’s 2024 annual general meeting.

Tsingtao Brewery Announces Final Dividend for 2024

Tsingtao Brewery Company Limited has announced a final cash dividend of RMB 2.2 per share for the financial year ending December 31, 2024. The announcement includes key dates such as the ex-dividend date on May 23, 2025, and the payment date on July 11, 2025. This update reflects the company’s commitment to returning value to its shareholders, potentially enhancing investor confidence and solidifying its market position.

Tsingtao Brewery Schedules Board Meeting to Approve Q1 Results

Tsingtao Brewery Company Limited has announced that its board of directors will convene a meeting on April 28, 2025, to review and approve the company’s unaudited first quarterly results for the period ending March 31, 2025. This meeting is crucial as it will provide insights into the company’s financial performance and strategic direction for the year, potentially impacting investor confidence and market positioning.

Tsingtao Brewery Reports Stable Financial Growth in 2024

Tsingtao Brewery Company Limited has released its preliminary consolidated financial results for the year ending December 31, 2024. The company reported total assets of RMB 51.42 billion, an increase from the previous year, with notable growth in non-current assets. Total liabilities also rose slightly, while equity attributable to shareholders increased to RMB 29.06 billion. These results indicate a stable financial position, suggesting potential positive implications for stakeholders and reinforcing its competitive stance in the brewing industry.

Tsingtao Brewery Announces Final Dividend for 2024

Tsingtao Brewery Company Limited has announced a final ordinary cash dividend of RMB 2.2 per share for the financial year ending December 31, 2024. This announcement reflects the company’s financial health and commitment to returning value to its shareholders, though specific details such as the payment date and withholding tax information are yet to be disclosed.

Tsingtao Brewery Schedules Board Meeting to Review Annual Results

Tsingtao Brewery Company Limited has announced that its board of directors will meet on March 28, 2025, to review and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider recommending the payment of a final dividend, which could impact the company’s financial strategy and shareholder returns.