China & Hong Kong: Tai Fook keeps Buy on Tsingtao Brewery

Tai Fook keeps the “buy” rating on Tsingtao Brewery with a HK$10 target, Dow Jones Newswires communicated June 29. Business growth continued in FY05 with selling price jumping 6% to CNY2,456/ton, which helped improve company’s gross margins by 3% on-year.

Tai Fook targets net profit growth of 16% this year to CNY356 million, underpinned by strong sales rise. It adds Tsingtao H-shares trading at discount of around 28% to A-shares, reflecting appeal of HK-listed shares. Stock now +2.9% at HK$8.75.

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