Core Viewpoint - The event "Elephant Has New Voice" folk singer competition, co-hosted by Tsingtao Brewery and Elephant Folk, highlights the brand's strategy to connect deeply with young consumers through music and cultural integration [1][3][7]. Group 1: Event Overview - The final of the competition took place in Wuhan, featuring 15 music groups showcasing their talents, which infused vitality into the summer nights of the city [1]. - The competition included a diverse lineup of participants, from amateur musicians to professional bands, enhancing audience engagement and cultural resonance [3]. Group 2: Brand Strategy - Tsingtao Brewery aims to provide platforms and resources for young musicians, evolving its partnership with Elephant Folk from traditional beverage supply to collaborative scene creation [3][5]. - The brand is actively pursuing a younger demographic through the "Beer+" model, sponsoring music festivals and sports events, and creating customized activities [5][6]. Group 3: Product Innovation - Tsingtao Brewery's Pure Draft series is aligned with market trends, focusing on "fresh and crisp taste," optimizing brewing processes, and introducing lightweight packaging to meet the dual demands of quality and convenience from young consumers [6]. - The penetration rate of the Pure Draft series among the 25-35 age group has been consistently increasing, indicating the effectiveness of scenario-based marketing in driving brand youthfulness [6]. Group 4: Future Directions - As a century-old brand, Tsingtao Brewery is leveraging innovative approaches to release new brand potential, solidifying its leading position in music marketing and achieving a transition from channel penetration to cultural symbiosis [7]. - The company plans to deepen cross-industry collaborations, integrating with urban culture and trends to create diverse experiential value for consumers [7].

Investment Rating - The report maintains a "Buy" rating for Qingdao Beer (600600.SH) [5][44]. Core Viewpoints - The new management team emphasizes a consumer-centric approach and aims for balanced growth in volume and profit. The strategy includes focusing on strategic areas such as "beer + biology + health," deepening domestic and international markets, and enhancing brand communication [1][14]. - The beer industry is characterized by stable overall volume and structural upgrades, with significant room for growth in per capita consumption in China. The company aims to meet evolving consumer demands through its "Five New" strategy, which focuses on new products, channels, scenes, groups, and needs [2][15]. Summary by Sections New Management Strategy - The new management strategy continues the core strategy of the previous leadership, with a focus on consumer-centricity and sales growth. Key measures include strategic positioning in "beer + biology + health," deepening market presence, and enhancing brand experience [1][14]. Focus on Consumer Needs - The beer industry shows a trend of stable total volume and diversified consumer demands. The average beer consumption in China is projected to be 30.5 liters in 2024, indicating potential for growth. The company addresses new consumer demands through innovative products and marketing strategies [2][15]. Focus on Sales Growth - The company implements a multi-faceted approach to drive sales growth, including a product strategy that emphasizes core products and the development of fresh and premium offerings. The southern market is identified as a growth highlight, with plans for new consumption scenarios and product launches [3][42][43]. Financial Forecast and Valuation - The report forecasts net profits for 2025-2027 to be 48.46 billion, 51.71 billion, and 54.42 billion yuan, respectively, with corresponding EPS of 3.55, 3.79, and 3.99 yuan. The current stock price corresponds to PE ratios of 20x, 19x, and 18x for the same years [3][44].

Core Insights - The global beer industry is undergoing significant adjustments, with Budweiser APAC's 2024 financial report highlighting typical characteristics of this transitional period [1] - Despite a challenging environment, Budweiser APAC's Harbin Beer has shown positive transformation through product innovation and channel optimization [1] Financial Performance - Budweiser APAC's total revenue for 2024 decreased to $6.246 billion, reflecting a year-on-year decline [1] - Net profit fell by 14.8%, indicating pressure from market competition and fluctuating consumer conditions [1] Product Innovation - Harbin Beer’s zero-sugar product line experienced a remarkable growth of 122%, driven by collaborations with the NBA to engage younger consumers [1] - The introduction of the zero-sugar ice pure series has achieved a nationwide coverage of 85% in convenience stores, with a penetration rate of 19.3% among the 25-34 age group [3] Strategic Focus - Budweiser APAC plans to focus on core brands, specifically Budweiser and Harbin Beer, as part of its 2025 strategy [2] - The appointment of Cheng Yanjun as CEO signals a commitment to enhancing local decision-making efficiency and leveraging his technical background for supply chain optimization [3] Market Adaptation - Harbin Beer is actively adjusting its channel strategy to address the decline in traditional nightlife venues, with a 30% increase in sales of low-sugar, low-alcohol products expected by 2025 [4] - The brand is expanding its online sales, which have increased by 18%, and improving its convenience store presence with a 25% growth in the East China region [9] Cultural Integration - Harbin Beer is transforming its century-old industrial heritage into a cultural IP, utilizing tourism and product sales to enhance brand engagement [6] - The integration of industrial tourism with product sales, such as offering a beer case with museum entry, is creating new consumer touchpoints [6] Future Challenges - Harbin Beer must continue to seek breakthroughs in brand rejuvenation and value reconstruction to appeal to younger consumers [10] - The new CEO emphasizes the need for localized strategies to rebuild connections with consumers, focusing on product and channel innovation [10]