Macquarie estimates that China Resources Brewery (00291) will invest about 1.8 billion yuan in the next two to three years to expand liquor production capacity, thus achieving a sales target of 8 billion to 10 billion yuan.
The Zhitong Finance App learned that Macquarie released a research report saying that maintaining China Resources Beer (00291)'s “neutral” rating, the 2024 and 2025 net profit forecast was raised by 20.7% and 10.9%, and the target price increased 15.4% to HK$33 from HK$28.6, but it is expected that the relevant favorable factors have already been reflected in the stock price performance.
According to the report, the company's sales of beer products fell 2% year on year in the second half of last year, and the average product price increase also slowed from 4.4% in the first half of the year to 2.8% in the second half of the year. Among them, sales of high-end brand beer products increased 10% year over year, and the share of high-end brand products also increased by 1.1 percentage points to 23.1% compared to the first half of the year. In the full year, sales of liquor products reached 2 billion yuan. The company is committed to inventory removal and brand transformation. Last year's inventory fell by 800 million yuan, while liquor sales increased by about 50% in the first two months of this year. Macquarie estimates that in the next two to three years, Runbeer will invest about 1.8 billion yuan to expand liquor production capacity, thereby achieving sales targets of 8 billion to 10 billion yuan.