SEHK:168

Stock Analysis Report

Executive Summary

Tsingtao Brewery Company Limited, together with its subsidiaries, engages in the production, distribution, wholesale, and retail sale of beer products worldwide.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Tsingtao Brewery's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 168's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.8%

168

5.5%

HK Beverage

7.4%

HK Market


1 Year Return

0.4%

168

-3.7%

HK Beverage

-22.7%

HK Market

Return vs Industry: 168 exceeded the Hong Kong Beverage industry which returned 0.4% over the past year.

Return vs Market: 168 exceeded the Hong Kong Market which returned -20.3% over the past year.


Shareholder returns

168IndustryMarket
7 Day4.8%5.5%7.4%
30 Day-2.3%-10.4%-11.2%
90 Day-24.5%-22.8%-17.3%
1 Year1.5%0.4%-3.1%-3.7%-19.9%-22.7%
3 Year16.0%12.0%30.5%27.9%-5.3%-14.8%
5 Year-18.7%-23.6%-27.2%-35.3%-8.7%-23.4%

Price Volatility Vs. Market

How volatile is Tsingtao Brewery's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tsingtao Brewery undervalued compared to its fair value and its price relative to the market?

6.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 168 (HK$40.15) is trading above our estimate of fair value (HK$38.15)

Significantly Below Fair Value: 168 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 168 is poor value based on its PE Ratio (26.8x) compared to the Beverage industry average (24.2x).

PE vs Market: 168 is poor value based on its PE Ratio (26.8x) compared to the Hong Kong market (9x).


Price to Earnings Growth Ratio

PEG Ratio: 168 is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: 168 is overvalued based on its PB Ratio (2.6x) compared to the HK Beverage industry average (0.6x).


Next Steps

Future Growth

How is Tsingtao Brewery forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 168's forecast earnings growth (12.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 168's earnings (12.6% per year) are forecast to grow slower than the Hong Kong market (12.8% per year).

High Growth Earnings: 168's earnings are forecast to grow, but not significantly.

Revenue vs Market: 168's revenue (3.6% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).

High Growth Revenue: 168's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 168's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

How has Tsingtao Brewery performed over the past 5 years?

-2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 168 has high quality earnings.

Growing Profit Margin: 168's current net profit margins (6.6%) are higher than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: 168's earnings have declined by -2.1% per year over the past 5 years.

Accelerating Growth: 168's earnings growth over the past year (30.2%) exceeds its 5-year average (-2.1% per year).

Earnings vs Industry: 168 earnings growth over the past year (30.2%) exceeded the Beverage industry -6.3%.


Return on Equity

High ROE: 168's Return on Equity (9.7%) is considered low.


Next Steps

Financial Health

How is Tsingtao Brewery's financial position?


Financial Position Analysis

Short Term Liabilities: 168's short term assets (CN¥21.0B) exceed its short term liabilities (CN¥13.4B).

Long Term Liabilities: 168's short term assets (CN¥21.0B) exceed its long term liabilities (CN¥4.0B).


Debt to Equity History and Analysis

Debt Level: 168's debt to equity ratio (1.4%) is considered satisfactory.

Reducing Debt: 168's debt to equity ratio has reduced from 2.9% to 1.4% over the past 5 years.

Debt Coverage: 168's debt is well covered by operating cash flow (1469.4%).

Interest Coverage: 168 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 168 has a high level of physical assets or inventory.

Debt Coverage by Assets: 168's debt is covered by short term assets (assets are 76.8x debt).


Next Steps

Dividend

What is Tsingtao Brewery's current dividend yield, its reliability and sustainability?

1.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 168's dividend (1.31%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.67%).

High Dividend: 168's dividend (1.31%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.29%).


Stability and Growth of Payments

Stable Dividend: 168 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 168 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 168 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 168's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.7yrs

Average management tenure


CEO

Ke Huang (57yo)

7.67s

Tenure

CN¥643,735

Compensation

Mr. Ke Xing Huang, EMBA has been the Chief Executive Officer of Tsingtao Brewery Company Limited since June 28, 2012 and its Chairman since May 17, 2018. Mr. Huang served as President at Tsingtao Brewery G ...


CEO Compensation Analysis

Compensation vs Market: Ke's total compensation ($USD90.72K) is below average for companies of similar size in the Hong Kong market ($USD718.74K).

Compensation vs Earnings: Ke's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ke Huang
Chairman & CEO7.67yrsCN¥643.74k0.0020% CN¥1.2m
Zhu Yu
Executive Director & CFO5.67yrsCN¥539.18kno data
Rui Wang
VP & Executive Director1.67yrsCN¥528.68kno data
Qiuyan Hou
Head of Accountingno datano datano data
Sun Hong
Head of Law Affairs Department and Employee Representative Supervisorno dataCN¥442.20kno data
Zhi Cai
President of Marketing Center2.42yrsCN¥332.50kno data
Rui Xiang Zhang
Head of Equity Management Department & Company Secretary8.58yrsno datano data
Chao Xue
Asst. to President of Mfg Centerno dataCN¥549.65kno data

7.7yrs

Average Tenure

55yo

Average Age

Experienced Management: 168's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ke Huang
Chairman & CEO7.67yrsCN¥643.74k0.0020% CN¥1.2m
Zhu Yu
Executive Director & CFO5.67yrsCN¥539.18kno data
Rui Wang
VP & Executive Director1.67yrsCN¥528.68kno data
Sun Hong
Head of Law Affairs Department and Employee Representative Supervisorno dataCN¥442.20kno data
Zeng Biao Yu
Independent Non-Executive Director4yrsCN¥120.00k0.0015% CN¥907.9k
Min Jiang
Independent Non-Executive Director5.67yrsCN¥120.00kno data
Sheng Lin Ben
Independent Non-Executive Director5.67yrsCN¥120.00kno data
Gang Li
Chairman of Board of Supervisorsno datano datano data
Xing Jiang
Independent Non-Executive Director1.67yrsCN¥60.00kno data
Kun Shi
Non Executive Directorno datano datano data

4.0yrs

Average Tenure

54yo

Average Age

Experienced Board: 168's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tsingtao Brewery Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tsingtao Brewery Company Limited
  • Ticker: 168
  • Exchange: SEHK
  • Founded: 1903
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$61.344b
  • Shares outstanding: 1.35b
  • Website: https://www.tsingtao.com.cn

Number of Employees


Location

  • Tsingtao Brewery Company Limited
  • Tsingtao Beer Tower
  • May Fourth Square
  • Qingdao
  • Shandong Province
  • 266071
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TSGT.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDJul 1993
168SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJul 1993
TSIDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJul 1993
168SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJul 1993
168SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJul 1993
600600SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYNov 1993
600600XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYNov 1993
TSGT.YOTCPK (Pink Sheets LLC)SPON ADR CL HUSUSDApr 1996

Biography

Tsingtao Brewery Company Limited, together with its subsidiaries, engages in the production, distribution, wholesale, and retail sale of beer products worldwide. It operates through seven segments: Shandong Region; South China Region; North China Region; East China Region; Southeast China Region; Hong Kong, Macau and Other Overseas Region; and Finance Company. The company sells its beer products primarily under the Tsingtao Beer and Laoshan Beer brands. It also provides wealth management, and agency collection and payment services; and construction and logistics services. The company was founded in 1903 and is headquartered in Qingdao, the People's Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 12:42
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.