Bank of America Securities: Lowering the target price of Tsingtao Brewery (00168) shares to HK$53 and reaffirms the “buy” rating

The Zhitong Finance App learned that Bank of America Securities released a research report stating that the target price of Tsingtao Brewery (00168) shares was reduced from HK$59.5 to HK$53, reaffirming the “buy” rating. The bank pointed out that Tsingtao Brewery's second-quarter results fell short of expectations due to weak sales. Revenue/net profit for the first half of the year was -4.1% and +0.4% year-on-year, respectively, and -6.7%/-3.4% for the second quarter. Sales for the next quarter fell short of expectations, mainly due to unfavorable weather, weak dining channels, and Tsingtao Brewery's intention to downplay low-end products. The bank lowered its 2026/2027 earnings forecast per share by 5%/6%, respectively. Since Tsingtao Brewery has a stable portfolio of high-end brands and provides a steady dividend yield, Bank of America predicts a dividend rate of 6.5% in 2026.