5carddraw| Bank of America Securities: Maintain Tsingtao Brewery's "Buy" rating target price of HK$75

Bank of America Securities released a research report saying5carddraw, maintain the "Buy" rating of Tsingtao Brewery (00168)5carddraw, the target price is HK$75. The company's first-quarter revenue fell 5% year-on-year5carddraw.2%, slightly below market expectations, but after-tax earnings and core after-tax earnings rose 10% year-on-year5carddraw.1% and 12%, both exceeding market expectations for mid-to-high single-digit growth. The bank believes strong earnings are due to lower raw material costs and quarterly fluctuations in sales expenses.

The bank pointed out that Tsingtao Beer's sales growth in the first quarter fell behind local peers, but the situation narrowed in April, partially benefiting from the low base. However, the bank is wary of the short-term impact of the slight increase in the base in May and June last year on the sales growth trend, and the average sales price will be under short-term pressure. The bank maintains its estimate for Tsingtao Brewery and its forecast for low to medium single-digit growth in its average selling price this year. Under the weak average selling price, favorable costs and regional integration can still provide the company with a good profit margin buffer and support its double-digit earnings per share growth.