Shares of Chinese brewer Tsingtao Brewery  surged yesterday after the company said it expected first-half net profit to soar 60 to 70 percent year-on-year.

The stock rose as much as 8 percent in morning trade, before closing at HK$26.20, up 6.72 percent.

“The earnings growth was driven by the volume growth in beer sales, a better product mix and a decline in raw material costs,” Bank of China International analyst Zhao Zongjun wrote in a report. Last year, the company reported first-half net profit of 381 million yuan (HK$432 million). The Shandong-based brewery said efforts to strengthen its plant management and lower costs had helped boost revenues and profit this year.

Tags | asia, beer, brewer, china, tsingtao