HSBC Research: Lowering target price for beer stocks, preferring craft beer and light beer

On July 26, HSBC Research released a report that beer stocks are expected to rise steadily but unevenly this year, and beer companies that are more in touch with the mass market will outperform. The bank believes that the valuation of the industry is attractive, and if the performance improves in the third quarter, it is expected to be re-evaluated. The bank prefers China Resources Beer (00291. HK) and Tsingtao Brewery (00168.HK) both have "buy" ratings, believing that they will benefit from the recovery of sales from a low base in the third quarter and the continued improvement in mass market sales due to the upgraded product mix. Budweiser APAC (01876.HK) HK) has a "hold" rating. China Resources Beer lowered its target price from HK$45.5 to HK$37.8, Tsingtao Beer lowered its target price from HK$70.5 to HK$64.1, and Budweiser APAC lowered its target price from HK$11.4 to HK$10.5.