Nomura lifted its target price for Tsingtao Brewery (00168) to HK$55.5 from HK$40.6, and maintained its "buy" rating.
The research house said Fosun (00656) has replaced Asahi as the second-largest shareholder, and it expects Fosun to help Tsingtao improve its corporate governance.
In addition, Nomura believes that Tsingtao has the potential to raise ASPs in five operating regions in upcoming years. The research house raised its FY2018/FY2019 ASP estimates by 3.9%/6% factoring in 5%/2% like-for-like ASP increases for FY2018/FY2019.
It believes that the increased focus on premium beer and capacity closure at plants in some of the regions with weak sales could result in upside surprises for the company.
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