Tsingtao Brewery(600600) EBSCN·2024-04-30 03:02Investment Rating - The report maintains a "Buy" rating for Qingdao Beer (600600.SH) [5][7] Core Views - Qingdao Beer reported a Q1 2024 revenue of 10.15 billion yuan, down 5.2% year-on-year, while net profit increased by 10.1% to 1.6 billion yuan [2][3] - Despite a decline in sales volume, the company is successfully upgrading its product structure, with a 2.6% increase in average selling price (ASP) to 4,647 yuan per thousand liters [3][4] - The company has improved its net profit margin to 15.99%, up 2.23 percentage points year-on-year, driven by cost control and a favorable product mix [4] Summary by Sections Revenue and Profitability - Q1 2024 revenue was 10.15 billion yuan, a decrease of 5.2% year-on-year, with sales volume down 7.6% to 2.184 million kiloliters [2][3] - The main brand's sales volume fell by 5.6%, while mid-to-high-end products saw a smaller decline of 2.4% [3] - Gross margin improved to 40.44%, up 2.12 percentage points year-on-year, aided by lower costs for barley and packaging materials [4] Cost Management - The company achieved a sales expense ratio of 12.83%, down 1.02 percentage points, reflecting improved efficiency in expense allocation [4] - Management expense ratio increased slightly to 3.4%, up 0.41 percentage points [4] Future Outlook - The report anticipates easing of high base pressure in the coming quarters, with expectations for improved sales during the peak season [5] - The company aims for double-digit growth in sales of its premium products, indicating a continued focus on high-end market segments [5] - Profit forecasts for 2024-2026 are set at 5.033 billion, 5.753 billion, and 6.353 billion yuan respectively, with corresponding EPS of 3.69, 4.22, and 4.66 yuan [5][10]