China Post Securities: Maintains a "buy" rating for Chongqing Brewery, with stable volume and price performance, but profit is dragged down by income tax.

Postal Securities research report pointed out that Chongqing Beer achieved operating income/ net profit attributable to the parent company/ non-net profit of 8.839/0.865/0.855 billion yuan in the first half of the year, a year-on-year decrease of -0.24%/-4.03%/-3.72%. In terms of products, the high-end/mainstream/economy beer in the first half of 2025 achieved revenues of 5.265/3.145/0.196 billion yuan, respectively, with year-on-year changes of +0.04%/-0.92%/5.39%. The gross profit margin of the company in the first half of 2025 slightly increased, mainly benefiting from the decrease in raw material costs. The company's net profit margin in the first half of 2025 slightly decreased, mainly affected by income tax expenses. The company's income tax expenses reached 5 billion yuan in the first half of 2025, an increase of 0.69 billion yuan compared to the previous year, which the bank expects is related to the adjustment of the company's tax incentives. In the face of external challenges such as fierce competition in the beer market in the first half of 2025, the company maintained a stable business through measures such as optimizing large city project strategies, enriching product portfolios, promoting digital channel empowerment, and deepening distributor cooperation. The "buy" rating is maintained.