Goldman Sachs issued a research report stating that TSINGTAO BREW (00168) is steadily advancing its premiumization strategy, maintaining a "Buy" rating with a target price of HK$61.4, implying a 2026 forward P/E of approximately 15.2x.

In Q3, the company reported revenue of RMB8.88 billion, down 0.2% YoY, slightly below the bank's projected 1.3% growth. Net profit reached RMB1.37 billion, up 1.6% YoY but missing the bank's 8.8% growth forecast.

Volume growth was modest at 0.3% YoY, while average selling price (ASP) declined 0.5%, both underperforming Goldman's estimates of 0.9% and 0.4% growth, respectively. Gross margin improved 1.4 percentage points YoY to 36.1%, though below the expected 36.7%, likely due to weaker pricing.

By segment, sales of sub-premium and above products grew 6.8% YoY, increasing their share of total volume to 43.6% from 41% a year earlier.