Haitong International released a research report stating that it maintained China Resources Beer (00291)'s “superior to the market” rating and lowered the target price from HK$66 to HK$56. The company's revenue last year was RMB 38.93 billion (same below), up 10.4% year on year. Core EBIT reached 7.1 billion yuan, up 30% year on year, and net profit rose 18.6% to RMB 5.15 billion.
Looking ahead to 2024, Haitong International expects the sales volume of China Resources Brewery to increase slightly, and the tonnage price will increase by medium to low units. Heineken and Pure Life will reach 75 and 1 million kiloliters respectively, while maintaining double-digit growth above the sub-high-end. Currently, the company's barley price lock has decreased by double digits year on year, and there is little pressure on the price of packaging materials. It is expected that the structural improvement will provide good flexibility for performance growth.
The forecast estimates that the company's earnings per share from 2024 to 26 will be 1.87 yuan, 2.14 yuan, and 2.42 yuan respectively. Considering the declining valuation of comparable companies, the company's beer business already ranked first in sales, revenue, and profit, and its leading edge is expected to expand further in the future. Last year, the liquor business completed a thorough market order reconstruction, and is expected to grow rapidly this year.