[ET Net News Agency, 23 January 2018] UBS Global Research lifted its target price for
Tsingtao Brewery (00168) to HK$55.09 from HK$45.37, and maintained its "buy" rating.
The research house raised its 2018/19 earnings estimates by 1%/7%, driven by higher ASP
assumptions. It believes price hikes since last December were not cost-driven and reflect
a structural change in the supply/demand balance.
Trading at 8.4x 2019 EV/EBITDA, versus global peers' 16x, the stock still appears
undervalued, given a 2017-20 EBITDA CAGR of 23%. UBS said the recently announced
collaboration between TB and Taobao in 2018 shows management's intention to rejuvenate the
brand image. (KL)