By Yi Wei Wong


Tsingtao Brewery Co.'s shares fell Thursday following the release of its third-quarter earnings, which drew a mixed response from analysts.

The brewer's Shanghai-listed A-shares fell as much as 7.9% to 87.26 yuan ($12.17). They were last 6.8% lower at CNY88.39. The company's H-shares in Hong Kong were down 4.7% at HK$60.90.

Tsingtao Brewery said net profit in the quarter rose 18% on year to CNY1.4 billion, which it attributed to higher sales.

The result missed Jefferies's estimates, as the investment bank was initially too positive on the company's cost-saving efforts, analysts Anne Ling and Lisa Liao say in a research report. However, Jefferies viewed the Tsingtao Brewery's earnings as a "respectable result."

Jefferies said it expects demand for beer during the World Cup season in December to be negatively affected by stringent traffic controls and Covid-19 outbreaks in China.

The bank has a buy rating on the stock and a target price of HK$96.00 on the company's H-shares.

In a separate note, Citi analysts Xiaopo Wei and Vincent Yang said the brewer's net profit came in ahead of expectations, helped by higher demand for beer during China's unusually hot summer.

The analysts upgrade the stock to neutral from buy and raise the target price on the company's H-shares to HK$84.50.


Write to Yi Wei Wong at yiwei.wong@wsj.com


(END) Dow Jones Newswires

10-27-22 0008ET