HK Stock Market Move | Beer stocks continue to rebound in August, with the month-on-month decrease in beer production narrowing. Sales volume is expected to improve in the second half of the year.

Beer stocks continue to rebound, as of the time of writing, CHINA RES BEER (00291) rose by 7.69% to 25.9 Hong Kong dollars; TSINGTAO BREW (00168) rose by 6.28% to 45.7 Hong Kong dollars; BUD APAC (01876) rose by 4.85% to 8.43 Hong Kong dollars. On the news front, the National Bureau of Statistics released data showing that the output of beer for large-scale enterprises in August was 358.5 million liters, a year-on-year decrease of 3.3% but a narrowing month-on-month decline from July; the output for January to August was 2637.6 million liters, a year-on-year decrease of 1.2%; the average price of imported barley in August increased by 16% year-on-year and 1% month-on-month. Tianfeng pointed out that with the beginning of the school season, various companies are actively marketing, and the Mid-Autumn Festival and National Day will drive the gift-giving scene, so attention should be paid to the stocking and sales progress of related products. Donghai Securities stated that in terms of demand, beer sales in the first half of the year were under pressure due to factors such as macroeconomic conditions and weather, leading to performance differentiation among beer companies. In the second half of the year, with the catalysis of the peak season and the low base effect, beer sales are expected to improve. In terms of costs, the cost advantage of raw materials such as barley has continued to be released this year, with imported barley prices falling by 16% year-on-year as of August, showing the resilience of profits in the beer sector. In the long run, the trend towards the high-end of the beer industry remains unchanged.