According to the Zhitong Finance APP, beer stocks continue to decline. As of press time, China Resources Beer (00291) fell 3.28% to HKD 29.5; Qingdao Beer Co., Ltd. (00168) fell 2.5% to HKD 48.7; Budweiser Asia Pacific (01876) fell 1.74% to HKD 13.52.

Guojin Securities pointed out that the catalytic factors for the sharp decline in the beer sector last week were the relatively flat performance of December data and the disturbance of funds. In December, despite a low base, the performance was lackluster. The bank believes that: 1) the delayed Spring Festival has led to a shift in stocking pace, and companies are reducing inventory and building up momentum for a good start to the coming year; 2) Poor weather in many places; 3) The overall structure exceeded expectations, with the main drag on the total volume being in the mid to low end products.

The bank reiterated that the economic environment is at its bottom, the consensus on upgrading and improving efficiency on the supply side remains unchanged, and the demand side pursues high-quality products with higher cost-effectiveness. Beer priced between 5-12 yuan is mainly used in catering scenes, with low price sensitivity and strong manufacturer control, so the upgrade resilience is sufficient. Reducing losses in Q4 is a highly probable event, with a corresponding profit growth rate of 15-20% over the next 24 years, gradually entering the value investment range.