Jinwu Financial News | CITIC Construction Investment Research Report indicates that high-end domestic beer continues. China Resources Brewery (00291) continues to advance the “decisive victory over the high-end” strategy, continues to optimize production capacity and organizational transformation, and build a “Heineken + SuperX+ Pure Life” high-end brand group. The proportion of sub-high-end and above beer products continues to rise. Heineken experienced rapid growth of nearly 60% in 2023, and annual sales exceeded 600,000 tons. The first five-year plan for cooperation with Heineken was successfully completed. The company launched a beer+white empowering model to become an explorer in the new world of alcohol. Sands has gradually resumed growth in the second half of 2023, and is expected to open up the company's growth ceiling in the future. Barley prices fell in 2024, which is beneficial to further improving the company's profitability.
The bank expects to achieve turnover of 416.6, 437.0, and 45.80 billion yuan in 2024-2026, up 7.01%, 4.89%, and 4.81% year-on-year; net profit to mother of 60.5, 70.6, and 7.93 billion yuan, up 17.5%, 16.6%, and 12.4% year-on-year, corresponding to 2024-2026 PE 18.1X, 15.5X, and 13.8X, respectively. Maintain a buy rating.