China: Kingway Brewery shares down 1.8%

Kingway Brewery down 1.8% at HK$2.775 after rising to HK$2.875 in morning on Xian expansion plan, Dow Jones Newswires posted on July 21. Dao Heng says existing expansion plan on track, with Shantou and Dongguang plants to double capacity in late 2006 to further defend home turf in Guangdong province, while Tianjin and Xian breweries to help Kingway to "expand the northern China market", thus fulfilling plan of becoming national brand with annual production capacity of 1.35 million tons by end-2008. Keeps Kingway as buy, as valuation at 21X FY06 PER cheaper vs Tsingtao Brewery's (0168.HK) 29X.

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