$TSINGTAO BREW(00168.HK) First take: In the third quarter, due to the continued weak macro environment, Qingdao Beer’s third-quarter report still showed a decline in both volume and price, but improved compared to the second quarter.

1) Revenue of 21.6 billion yuan, a year-on-year decrease of 5.3%. Sales volume: In the third quarter, Qingdao Beer achieved a sales volume of 2.16 million tons, a year-on-year decrease of 5.2%, with the rate of decline narrowing compared to the second quarter. However, considering the peak season in the third quarter, the company increased its expenditure, and with channel inventory at a normal level, overall we believe the improvement in sales volume was below expectations; Price per ton: Qingdao Beer’s price per ton was 4,125 yuan/ton, basically flat, with average results from product structure upgrades.

2) Net profit of 1.35 billion yuan, a year-on-year decrease of 9%. Although the gross profit margin remained stable, due to the company increasing its expenditure in the third quarter, the sales expense ratio increased by 1% compared to the previous quarter, further narrowing the gross profit margin.

3) Overall, Qingdao Beer currently faces significant pressure in both volume and price. In terms of volume, Dolphin has learned that since August, the company’s home market in Shandong has seen a significant decline, facing intensified market competition. In terms of price, although the company has directly raised prices for products like Pure Draft this year, the current acceptance is low. In the future, it may be more reasonable to indirectly increase the price per ton by optimizing the product structure. $Tsingtao Brewery(600600.SH)