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168

Tsingtao BrewerySEHK:168 Stock Report

Market Cap

HK$122.3b

7D

10.2%

1Y

-2.4%

Updated

26 Oct, 2021

Data

Company Financials +
168 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends4/6

168 Overview

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

Tsingtao Brewery Competitors

Budweiser Brewing Company APAC

SEHK:1876

HK$245.6b

Diageo

LSE:DGE

UK£83.8b

Heineken

ENXTAM:HEIA

€53.0b

Pernod Ricard

ENXTPA:RI

€52.1b

Price History & Performance

Summary of all time highs, changes and price drops for Tsingtao Brewery
Historical stock prices
Current Share PriceHK$65.65
52 Week HighHK$57.30
52 Week LowHK$93.55
Beta1
1 Month Change7.80%
3 Month Change0.23%
1 Year Change-2.38%
3 Year Change112.12%
5 Year Change110.42%
Change since IPO1,736.36%

Recent News & Updates

Oct 01
Is Tsingtao Brewery Company Limited (HKG:168) Trading At A 27% Discount?

Is Tsingtao Brewery Company Limited (HKG:168) Trading At A 27% Discount?

In this article we are going to estimate the intrinsic value of Tsingtao Brewery Company Limited ( HKG:168 ) by taking...

Sep 07
Returns Are Gaining Momentum At Tsingtao Brewery (HKG:168)

Returns Are Gaining Momentum At Tsingtao Brewery (HKG:168)

What trends should we look for it we want to identify stocks that can multiply in value over the long term? One common...

Aug 26
Tsingtao Brewery (HKG:168) Could Easily Take On More Debt

Tsingtao Brewery (HKG:168) Could Easily Take On More Debt

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Aug 02
With EPS Growth And More, Tsingtao Brewery (HKG:168) Is Interesting

With EPS Growth And More, Tsingtao Brewery (HKG:168) Is Interesting

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

168HK BeverageHK Market
7D10.2%-0.7%0.4%
1Y-2.4%-1.8%6.7%

Return vs Industry: 168 matched the Hong Kong Beverage industry which returned -1.8% over the past year.

Return vs Market: 168 underperformed the Hong Kong Market which returned 6.7% over the past year.

Price Volatility

Is 168's price volatile compared to industry and market?
168 volatility
168 Beta1
Industry Beta0.82
Market Beta1

Stable Share Price: 168 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 168's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190333,945Ke Xing Huanghttps://www.tsingtao.com.cn

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 Tsingtaoand and Laoshan brand names.

Tsingtao Brewery Fundamentals Summary

How do Tsingtao Brewery's earnings and revenue compare to its market cap?
168 fundamental statistics
Market CapCN¥100.49b
Earnings (TTM)CN¥2.75b
Revenue (TTM)CN¥30.37b

26.7x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
168 income statement (TTM)
RevenueCN¥30.37b
Cost of RevenueCN¥17.62b
Gross ProfitCN¥12.75b
ExpensesCN¥10.00b
EarningsCN¥2.75b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 28, 2021

Earnings per share (EPS)2.02
Gross Margin41.99%
Net Profit Margin9.06%
Debt/Equity Ratio2.0%

How did 168 perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

37%

Payout Ratio

Valuation

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

21.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 168 (HK$65.65) is trading below our estimate of fair value (HK$84.11)

Significantly Below Fair Value: 168 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 168 is poor value based on its PE Ratio (26.7x) compared to the Hong Kong Beverage industry average (26x).

PE vs Market: 168 is poor value based on its PE Ratio (26.7x) compared to the Hong Kong market (9.6x).


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 (3.3x) compared to the HK Beverage industry average (0.9x).


Future Growth

How is Tsingtao Brewery forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 168's forecast earnings growth (13% per year) is above the savings rate (1.5%).

Earnings vs Market: 168's earnings (13% per year) are forecast to grow slower than the Hong Kong market (17.6% per year).

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

Revenue vs Market: 168's revenue (5.2% per year) is forecast to grow slower than the Hong Kong market (12.4% per year).

High Growth Revenue: 168's revenue (5.2% 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 (14.3%).


Past Performance

How has Tsingtao Brewery performed over the past 5 years?

15.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 168 has high quality earnings.

Growing Profit Margin: 168's current net profit margins (9.1%) are higher than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: 168's earnings have grown by 15.5% per year over the past 5 years.

Accelerating Growth: 168's earnings growth over the past year (32.5%) exceeds its 5-year average (15.5% per year).

Earnings vs Industry: 168 earnings growth over the past year (32.5%) underperformed the Beverage industry 49.8%.


Return on Equity

High ROE: 168's Return on Equity (12.5%) is considered low.


Financial Health

How is Tsingtao Brewery's financial position?


Financial Position Analysis

Short Term Liabilities: 168's short term assets (CN¥27.8B) exceed its short term liabilities (CN¥17.8B).

Long Term Liabilities: 168's short term assets (CN¥27.8B) exceed its long term liabilities (CN¥4.5B).


Debt to Equity History and Analysis

Debt Level: 168's debt to equity ratio (2%) is considered satisfactory.

Reducing Debt: 168's debt to equity ratio has reduced from 2.1% to 2% over the past 5 years.

Debt Coverage: 168's debt is well covered by operating cash flow (1113.5%).

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


Balance Sheet


Dividend

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

1.39%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 168's dividend (1.39%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 168's dividend (1.39%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.8%).


Stability and Growth of Payments

Stable Dividend: 168's dividends per share have been stable in the past 10 years.

Growing Dividend: 168's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.8%), 168's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 168's dividends in 3 years are forecast to be well covered by earnings (39.5% payout ratio).


Next Steps

Management

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

9.3yrs

Average management tenure


CEO

Ke Xing Huang (59 yo)

9.33yrs

Tenure

CN¥827,311

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 Xing's total compensation ($USD129.55K) is below average for companies of similar size in the Hong Kong market ($USD1.11M).

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


Leadership Team

Experienced Management: 168's management team is seasoned and experienced (9.3 years average tenure).


Board Members

Experienced Board: 168's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


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 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$122.335b
  • Shares outstanding: 1.36b
  • Website: https://www.tsingtao.com.cn

Number of Employees


Location

  • Tsingtao Brewery Company Limited
  • Tsingtao Beer Tower
  • No. 35 Donghai West Road
  • Qingdao
  • Shandong Province
  • 266071
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 16:09
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.