PETALING JAYA: The brewery sector is expected to see a gradual recovery in investor sentiment despite near-term volume headwinds.
This is as the sector’s risk-reward profile becomes more appealing following a sharp correction in share prices after the excise duty hike announced in November 2025, according to Hong Leong Investment Bank (HLIB) Research.
It maintained its “overweight” call on the sector, arguing that concerns over weaker beer consumption have largely been priced in by the market.
Sector valuations are currently trading at about 1.2 standard deviations below their five-year mean, while brewers have demonstrated their ability to preserve profitability even in challenging demand conditions.
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