HSI1 26,749.51 +119.55 240.87B
HSCEI1 9,160.81 +46.51 87.55B
Back    Zoom +    Zoom - Block Traded
CMSI Drops CHINA RES BEER (00291.HK) TP to $31, Keeps Overweight Rating
2026-01-23 10:03:52
Although CHINA RES BEER (00291.HK)'s on-trade channel remains under pressure (with revenue contribution dropping to about 35%), the Company showed resilience in overall sales last year, benefiting from mid-single-digit growth in the off-trade channel, according to CMSI's research report.

Specifically, product performance was mixed, with Heineken maintaining strong momentum (growth rate of about 20%), SuperX achieving single-digit growth, and low-end products recording slight positive growth due to the advantage of the off-trade channel, exceeding expectations. The core remains that the Company's profit thesis remains intact.

Given the weak performance of the baijiu business, CMSI slightly lowered its FY2025/ 2026 revenue forecasts by about 2%, maintained its beer business forecast basically unchanged. The broker also dropped its target price from $33.5 to $31, based on a projected EV/EBITDA of about 9x for end-2026, consistent with the average level since 2023, with rating kept at Overweight.
~

AASTOCKS Financial News
Website: www.aastocks.com