China Resources Brewery (00291) fell by more than 4%, down 4.35% at press time to HK$3.405, with a turnover of HK$374 million.
The Zhitong Finance App learned that China Resources Beer (00291) fell by more than 4% and fell 4.35% at press time to HK$34.05, with a turnover of HK$374 million.
Citi said it will lower the target price from HK$55.46 to HK$50.15. The company's forecast model was updated. Although the revenue growth forecast for this year was slightly reduced, the annual profit forecast remained largely unchanged. The Group's beer business is expected to expand by 4%, including a 0.5% increase in sales and a 3.5% increase in average product prices. Looking ahead to 2024, Haitong International expects the sales volume of China Resources Brewery to increase slightly. 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 dropped by double digits year on year, and there is little pressure on the price of packaging materials. It is expected that structural improvements will provide better flexibility for performance growth. The target price has been lowered from HK$66 to HK$56.
According to the BOC International Research Report, the company's target price was reduced by 29% from HK$62 to HK$43.9. Liquor's next focus is energy storage expansion. China Resources Brewery plans to expand energy storage by 60,000 tons to support future annual sales of RMB 8-10 billion. Given that overall sales are likely to continue to be pressured and the high-end price segment is more resilient, the bank will lower its preference for China Resources Brewery and is now more optimistic about its high-end counterpart Budweiser Asia Pacific (01876).