Data:2009-12-12 2:34
Category: Money Tips Date: 2007-05-17
Yanjing Beer may be partnerships with foreign counterparts
Deutsche Bank analyst MABEL WONG (CFA) 3 Yue 9 the launch reported that the demand for healthy food and beverage industry growth, but cost pressures as the main factors affecting earnings volatility. Especially in the beer area, mergers and acquisitions to become an important topic. Without foreign partners as the only beer giant, Yanjing Beer has changed position and began to consider the establishment of partnerships with foreign counterparts.
Yanjing Beer is one of the top five Chinese beer industry in 2004, market share as follows: 11% of the country, Beijing, 92%, 78% in Guangxi, Inner Mongolia, 60%, Fujian, 50%. Despite the large-scale promotions and Qingdao Beer price war, Yanjing Beer in Beijing maintained a dominant position. In areas outside of Beijing, Yanjing Beer and Tsingtao beer, like to expand through mergers and acquisitions, there are 16 brands. Beijing Yanjing Beer inside and outside the business contributed about 50% of the profits of each.
Yanjing Beer in 2004 sales of 264 million tons, this year's target of 3.4 million tons (capacity of 3.8 million tons). Next year to expand production capacity to 500 million tons (in Hebei has emerged capacity can not meet the needs of phenomenon). Management that it will not because the expansion of market share at the expense of profitability.
Yanjing Beer in August 2005 was nominated for the 2008 Olympic Games sponsor (sponsorship fee not disclosed), which means that future sales charges (in the third quarter of 2005 to 2008 was recorded during the period) will increase. Although the price of rice started to weaken in 2005, management indicated that the overall raw material costs continue to hover at high levels. (Securities Tong)
