Huachuang Securities: Maintains a "strong push" rating on Tsingtao Brewery, emphasizing the resilience of its performance and accelerating sales growth in the second quarter.

Hua Chuang Securities research report pointed out that Tsingtao Brewery held its 2024 annual shareholders' meeting and analyst and investor communication meeting on May 20, where the new management team led by Chairman Jiang Zongxiang made its first public appearance. The strategy remains consistent, and the operating momentum is stronger. The new management team continues the strategic consistency, with high-quality beer as the core focus, the company emphasizing product research and development, advancing structural upgrades, strengthening the advantages in the northern market, and steadily promoting profit growth. The marginal change lies in the more abundant operating momentum, with the primary goal of beer sales growth, actively expanding new channels and fresh categories, and starting to adjust and repair the previously weak southern market. On this basis, steadily expanding the business of rice wine, whiskey, and other diversified categories, cultivating new growth points. Tsingtao Brewery continues to move towards high-end development. Although the short-term competition is fierce, Tsingtao Brewery has a strong foundation and rich resources. With the strong momentum of the new management team this year, along with the recovery in sales volume and the continuation of cost dividends, the performance has elasticity. It is recommended to pay attention to the acceleration of sales in Q2. Maintain target prices of 90 yuan for A shares and 70 Hong Kong dollars for H shares, corresponding to PE ratios of about 25/18 times in 25E, and maintain a "strong buy" rating.