China Resources Beer 0291

[winston]

not vested

CHINA RES BEER(291)

Analysis：

The Group is engaged in retail, beer, food and beverage businesses, a subsidiary of China Resources.

The revenue in 2018 was 31.87 billion RMB, 7.2% growth YoY, while the net profit dropped by 16.9%, around 9.85 billion RMB.

The Group adjusted the price of certain products moderately and recorded a growth of 4.8% in mid- to high-end beer sales volume, which further boosted the product mix upgrade.

As a result, the Group`s overall average selling price recorded a year-on-year increase of 12.3%.

Currently, the customers are demanding for higher quality products, leading to the increase in the proportion of middle and high-end beer products.

Last year, Heineken was introduced to the Group as a strategic shareholder, and entitled equity interest of 20.67%; the parent company “China Resource” in turn owned 0.9% of Heineken.

The Group will be responsible for the sales of Heineken Beer in China, enriching the high-end products for the Group. It could facilitate the development in high-end market for the Group, and improve the poor sales channels for Heineken`s products.

Strategy：
Buy-in Price: $34.50, Target Price: $39.50, Cut Loss Price: $33.00

Source: Phillips

[winston]

not vested

Nov 15, 2019

<Research Report>Daiwa Cites CHINA RES BEER: Strives for Ongoing Earnings Growth; Not to Sacrifice Earnings for Greater Mkt Shr

Investors were most concerned about CHINA RES BEER (00291.HK)'s possible hike prices next year, consolidation progress with Heineken China, and product capacity reduction, reported Daiwa.

The brewer's management targeted to strive for ongoing earnings growth, rather than sacrificing earnings in order to expand its market share, cited by the broker.

The company declined to comment on the possibility of a near-term price hike.

Overall, CHINA RES BEER was kept at Buy.

Source: AAStocks Financial News

[winston]

not vested

Sep 20, 2019

<Research Report>UBS Downgrades CHINA RES BEER (00291.HK) to Neutral with Target Lifted to $44.5

CHINA RES BEER (00291.HK)'s price almost doubled in the past two years, given asset optimization and product mix upgrade.

UBS believed the company's 2020 EBITDA growth has factored in contributions from Heineken and cost control initiatives.

The broker raised CHINA RES BEER's 2019 earnings forecast by 8%.

Overall, CHINA RES BEER was downgraded from Buy to Neutral, with target lifted from $42.86 to $44.5.

Source: AAStocks Financial News

[winston]

not vested

CHINA RES BEER(291)

Analysis：

The company estimates that the profit attributable to the shareholders of the company for the year ended 31 December 2019 is expected to significantly increase by not less than 30% as compared with that of the year ended 31 December 2018.

The increase was mainly attributable to:
(1) the decrease in impairment loss of fixed assets resulted from the implementation of production capacity optimization as compared with last year;
(2) cost savings from efficiency gain;
(3) the contribution from Heineken China since the completion of its acquisition on 29 April 2019; and
(4) the company embarked on a new corporate annuity plan during 2018, which was effective from 1 January 2017, and recorded an one-off provision of its staff cost for 2017 in 2018 with an approximate amount of RMB117,000,000, while no such extra provision was made in 2019.

The company will benefit from the opportunities in the rapidly growing premium beer market in China, we are optimistic of the future performance.

Strategy：
Buy-in Price: $36.00, Target Price: $39.00, Cut Loss Price: $35.20

Source: Phillips

[winston]

not vested

CHINA RES BEER(291)

Analysis：

China Resources Beer is principally engaged in retail, beer, food and beverage businesses.

The company has acquired Heineken China and has formed a long term strategic partnership with Heineken Group. This long term strategic collaboration will provide an important strategic opportunity for the company to strengthen its presence and competitiveness in the premium beer market in China.

This is likely to have a positive effect on the company's overall margin ratio. Further, the company has gradually recovered in the second quarter of 2020 and performed slightly better than the industry average during the same period.

With the advent of the beer season and the recovery of domestic consumption, we are optimistic about the company's performance of 2020H2.

Strategy：
Buy-in Price: $46.10 , Target Price: $50.80 , Cut Loss Price: $43.80

Source: Phillips

[winston]

not vested

CHINA RES BEER(291)

Analysis：
China RES BE (0291.HK) profit increased by 59.6% in 2020 compared to 2019, to RMB 2.09 billion.

Since last year, the company has promoted to organizing strategic initiatives to gain market share in the premium segment, “five-point-one-line” methodology, and the introduction of Heineken`s international brands in 2019.

The Group`s sales volume of the sub-premium beer segment and above, achieved 1,460,000 kiloliters and increased by 11.1% yoy, with increased the average selling price at the same time.

With the peak sales season for the beer starting from mid-May, and the UEFA Euro 2021, the increasing market share and the average price in premium beer segment will support the performance in the second and third quarters.

In addition, the Group is one of the candidate stocks for dyeing blue this Friday, which would be a short-term potential catalyst.

Strategy：
Buy-in Price: $66.00, Target Price: $74.00, Cut Loss Price: $60.00

Source: Phillips

[winston]

not vested

CHINA RES BEER(291)

Analysis：

According to the positive profit alert of China Resources Beer (291), the Group`s profit attributable to the shareholders of the Company for the six months ended 30 June 2021 is expected to increase by not less than 100% as compared with the corresponding period in 2020.

Benefitting from the promotion of the Group`s premiumization strategy and the introduction of Heineken`s international brands in 2019, the Group`s sales volume of the sub-premium beer segment and above increased substantially, which further improves the product mix and leads to an increase in average selling price at the same time.

The Group also continues with its deployment of production capacity optimization to minimize inefficiency and improve the average production scale of the breweries. (I do not hold the above stock)

Strategy：
Buy-in Price: $68.00，, Target Price: $75.00, Cut Loss Price: $64.00

Source: Phillips

[winston]

not vested

China Resources Beer (291 HK)
1H21: Strong Results; Acceleration In Upmarket Push

CR Beer reported a 12.8% yoy increase in revenue in 1H21.

Its net profit surged 106.4% yoy in 1H21 mainly driven by the compensation gain on land transfer.

Its shipment of high-end products surged 50.9% yoy in 1H21.

It aims to achieve 30% yoy and 20-25% yoy growth for high-end products in 2021/22 respectively.

Its overall ASP hiked 7.5% yoy in 1H21.

CR Beer will raise the prices for some of its products in 2-3 months to tackle the cost hike issue.

Maintain BUY and lift the target price to HK$82.10.

Source: UOBKH

https://research.uobkayhian.com/content ... 7a74213ee0

[winston]

not vested

Kirin Sells Fully 40% Stake in JV with China Resources for USD1B

2022/02/16

The Japanese beverage company, Kirin, expressed that it has agreed to sell its entire 40% stake in the Chinese beverage joint venture it has with China Resources Group for approximately USD1 billion.

Kirin added that the stake in the above-mentioned JV company will be transferred to Plateau Consumer Ltd and that the company is expected to book a gain of about JPY39 billion (USD337.4 million) from the disposal.

Source: AAStocks Financial News

[winston]

not vested

CHINA RES BEER: Annual NP May Jump Up to 1.24x YoY to RMB4.7B

2022/01/26

CHINA RES BEER (00291.HK)’s net profit for the year ended 31 December 2021 is expected to be an amount between RMB4.4 billion and RMB4.7 billion, representing an increase between 110% and 124% as compared with 2020.

Dividend History
Announce Date Event Particular
2021/08/18 Interim D:RMB 0.2640(equivalent to HKD 0.3170)
2021/03/22 Final D:RMB 0.1310(equivalent to HKD 0.1580)
2020/08/19 Interim D:RMB 0.1280(equivalent to HKD 0.1430)
2020/03/20 Final D:RMB 0.0450(equivalent to HKD 0.0490)

Source: AAStocks Financial News