Citibank: Lowering the target price of Tsingtao Brewery (00168) shares to HK$68.55 to maintain a “buy” rating

The Zhitong Finance App learned that Citibank released a research report saying that considering that the mainland beer industry's peak season growth was lower than expected, the bank lowered the sales forecast for Tsingtao Brewery (00168) for this year and next two years by 6% and 7%, respectively, and the net profit forecast by 2% and 5%, respectively. The bank lowered the target price from HK$76.1 to HK$68.55 based on the 2026 forecast of EV/EBITDA of 10 times (in line with the weighted average of the global peer market capitalization, previously 12 times to reflect the weakness of the industry), and maintained the “buy” rating. The bank maintained the relative ranking of the industry, followed by China Resources Brewery (00291), Budweiser Asia Pacific (01876), and Tsingtao Brewery, all rated “buy”.