By Yifan Wang
Tsingtao Brewery Co shares rose to the highest point since April 2015 during intra-day trading on Friday, as investors welcome its better-than-expected earnings posted Thursday, which gained 25% in the six months ended June.
Tsingtao's share price has surged as much as 15% to HK$55.00, adding 9.46 billion Hong Kong dollars (US$1.21 billion) to the market capitalization of the company.
Another beer company listed in Hong Kong, China Resources Beer (Holdings) Co. (0291.HK), has also traded 9.8 % higher to a 14-month record after its net profit rose 20% in the first half of the year. The company has gained HK$11.52 billion in market capitalization from the share rise.
The breweries' upbeat results have boosted investor confidence in the industry's overall recovery from soft product prices, China Securities says, adding recent tax cuts also help to lift beer companies' profits above market expectation.
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