China's largest beer maker, Tsingtao Brewery, posted on October 29 a big rebound in third-quarter earnings as a heavy advertising push helped it to recover from the SARS crisis, according to Reuters. Shares in Tsingtao have rallied this week to their highest level in nearly 10 years on optimism over domestic consumption in booming China and anticipation of healthy results. But analysts said investors may start to worry about the company's valuation of roughly 40 times forecast earnings.

Tsingtao posted a net profit of 143.58 million yuan (US$17.3 million) for the three months ended in September, a nearly 29-percent rise from 111.46 million yuan in the year-ago quarter, based on Chinese accounting standards. Revenue at the firm founded by Germans in the port city of Qingdao -- it mounted a major ad campaign this summer as part of its 100th anniversary celebrations -- rose nine percent on year to 2.4 billion yuan. Nomura International analyst Phoebe Wong said the fourth quarter is typically a weak one for Tsingtao, and expected insignificant earnings contribution for the final three months of the year. But he said 2004 should be strong.

"This year has been disturbed by SARS," said Wong, "Next year, the growth momentum should be better than this year."

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