China Resources Beverage 2460

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CR Beverage aims to raise $5b amid market volatility

The company, which produces bottled water under the Cestbon brand, commanded the lion's share in the China's purified drinking water market last year.

It priced its shares between HK$13.5 and HK$14.5 apiece.

In China's over 200 billion yuan packaged drinking water market, C'estbon accounted for 18.4 percent market share in 2023.

Source: The Standard

https://www.thestandard.com.hk/section- ... volatility

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China Resources Drinks (2460.HK)

For the full year of 2022, 2023, and the first four months of 2024, the company's revenue was RMB 12.6 billion, RMB 13.5 billion and RMB 4.15 billion, up 11.3% year on year;

Net profit was 0.99 billion yuan, 1.33 billion yuan, and 0.45 billion yuan respectively, up 15.2%, 34.7%, and 29.5% year on year.

The company's core product is [Yibao] pure water, with sales reaching 39.5 billion yuan in 23 years, and is the number one brand in the Chinese pure water market.

Based on the net profit calculation for April 23 and 24 years ago, PE-TTM is 20x-21.5x, which is a reasonable valuation.

Recently, sentiment in the Hong Kong stock market has fluctuated greatly, and we have given an IPO-specific rating of “5.6.”

Source: Futu

https://news.futunn.com/en/post/4876229 ... 7420353622

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<Research>G Sachs Initiates Coverage on CR BEVERAGE (02460.HK) w/ Rating at Buy/ TP $17.3

2024/12/06

Goldman Sachs released a research report expecting CR BEVERAGE (02460.HK) to maintain its position as the second largest player in the RMB230 billion packaged water market, and continue to expand in the RMB689 billion soft drink market by leveraging on its branding, production and distribution network.

The broker initiated coverage on CR BEVERAGE, with rating/ target price at Buy/ $17.3.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

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<Research>BOCI Expects CR BEVERAGE (02460.HK) GPM to Gradually Improve from 2025, Cuts TP to $17.2

CR BEVERAGE (02460.HK) 's FY2024 revenue is 6% lower than BOCI's forecast, while shareholders' net profit is 2% lower than the broker's forecast, BOCI released a research report saying.

BOCI expected CR BEVERAGE's 2025 packaged drinking water sales to return to positive YoY growth in 2025, with gross profit margin rising by 0.8/ 0.5/ 0.4 ppts YoY in 2025-2027.

Related News: CR BEVERAGE 2024 NP Leaps 23%+ YoY to RMB1.637B w/ Final & Special Div. RMB48.3 Cents in Total

Moreover, the broker lowered its FY2025/ FY2026 net profit forecasts for CR BEVERAGE by 8%/ 11% respectively, and cut its target price from $18.22 to $17.2, with rating kept at Buy.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

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INSIDE INFORMATION PROFIT WARNING

he board (the “Board”) of directors (the “Director(s)”) of the Company wishes to inform the shareholders of the Company (the “Shareholders”) and potential investors that, based on the preliminary assessment of the Group’s unaudited consolidated management accounts for the six months ended June 30, 2025 (the “Period”) and other information currently available, the net profit of the Company for the Period is expected to decrease by approximately 20% to 30% as compared to the corresponding period in 2024, primarily attributable to the following reasons: based on the medium- to long-term development plan, the Company strategically increased investment in marketing resources, adjusted its product portfolio, and gradually implemented channel adjustments in the first half of 2025, which had temporarily impacted its profit performance.

The Group has adopted appropriate policies to ensure the end-market stability, achieve the second growth curve for non-water beverages by the launch and creation of new products, and actively take cost-control measures and optimize operational management, thereby offsetting some of these negative impacts.

https://www1.hkexnews.hk/listedco/listc ... 501757.pdf

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<Research>CLSA Cuts CR BEVERAGE's TP to HKD14.2; Rating Kept Outperform

CLSA has released a report updating its financial forecasts for CR BEVERAGE (02460.HK) after the release of the company's profit warning for 1H25.

The broker now expects CR BEVERAGE's 1H25 revenue/ profit to decline by 8%/ 22% YoY, primarily due to increased marketing investments.

However, with positive factors such as improved self-production ratios still in play, it anticipates the profit decline to continue narrowing in 2H25.

CLSA has reduced its target price for CR BEVERAGE from HKD17.7 to HKD14.2, while maintaining the Outperform rating.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

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<Research>HSBC Research Downgrades CR BEVERAGE's Rating to Reduce, Slashes TP to HKD8.9

According to a report from HSBC Research, CR BEVERAGE (02460.HK) has issued a profit warning revealing that its 1H25 performance would be far below the broker's forecasts.

HSBC Research has revised down its 2025-27 earnings forecasts for CR BEVERAGE by 45.9-48.1%, believing that rebuilding shareholder confidence would take time.

Related News: CLSA Cuts CR BEVERAGE's TP to HKD14.2; Rating Kept Outperform

CR BEVERAGE's rating was downgraded from Buy to Reduce, with a target price axed from HKD16.8 to HKD8.9.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

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<Research>CLSA Drops CR BEVERAGE (02460.HK) TP to $13.7, Sees Recovery Next Yr

The 1H25 sales and profit margin of CR BEVERAGE (02460.HK) were dragged down by more market investment and channel adjustments.

The broker expected this pressure to persist in 2H25 as the company continued to actively invest in marketing.

Although the sales volume of bottled water has gradually returned to positive YoY growth from July to August, CLSA still estimated that the 2025 net profit of CR BEVERAGE will decline by 34% YoY to RMB1.07 billion, but forecasted a turning point and recovery next year.

Related NewsCMBI Trims CR BEVERAGE (02460.HK) TP to $12.85, Keeps Rating at Buy

Therefore, the broker dropped its target price from $14.2 to $13.7, equivalent to a projected PE ratio of 18x over the next 12 months, with rating kept at Outperform.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN