What the broker said

Tsingtao Brewery produces and distributes beer products, and is one of the largest beer producers in the mainland.

In recent years, it has attempted to break into overseas markets.

In 1998, Core Pacific-Yamaichi placed a sell rating on the stock, saying it had sacrificed profitability for short-term market gains.

Tsingtao's price underperformed the Hang Seng Index before surging last year on reports of profit growth. The company said the increase was the result of a low-cost expansion strategy involving acquisition of failing breweries.

For most of the past year, Tsingtao has performed well under the HSI.

However, it started making ground in July and has gained in strength from there.