Leading companies' deeper participation in the high-end market has intensified competition in the beer industry.
Zhujiang Beer (002461:SZ) expects revenue to fall by 3%, while net profit will likely increase by 10% to 30% YoY in the first half of 2020. As the weather in southern China has recovered rapidly, extending the peak season, beer consumption has improved faster than in other regions.
Innovative marketing has contributed most. Zhujiang Beer builds its brand IP around three main lines: 'beer + music, beer + sports, and beer + gourmet,' driving sales up 10%, 6% and 2.4% in April, May and June, respectively.
Tsingtao Brewery's (600600:SH) revenue fell by 6% and profit fell by 4% as high-end consumption scenarios are still affected by the epidemic.
Yanjing Beer's (000729:SZ) revenue fell by 25% and profit fell by 73% due to stricter restrictions in Beijing, the company's target market.