CHINA: Brewers tipped for good first half
China's major brewers will post an increase of at least 15% in profits for the first half of the year, according to a poll of analysts conducted by Dow Jones.
The analysts said on Friday (18 August) that the increase in earnings would come on the back of continued cost controls, a more profitable product mix, and the positive impact of this year's football World Cup.
However, analysts have suggested that full-year growth may slow down, with limited potential for further cost-cutting and competition intensifying.
Tsingtao Brewery is expected to report a 16% increase in first-half net profit to CNY189.25m (US$23.75m), according to the average forecast of three analysts polled.
The average forecast for first-half net profit at Beijing Yanjing Brewery was CNY168.73m, representing a 15% increase year-on-year.
Fujian Yanjing Huiquan Brewery's first-half net profit is forecast to rise by 52% to CNY15m for the six months to the end of June, though last year's comparative figure was adversely affected by a flood in the region.
Sectors: Beer & cider
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