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UBS: CHINA RES BEER (00291.HK) TP Cut to $31.34 on Resilient Beer Biz, Slightly Improved Div. Payout Ratio
2026-03-24 09:56:12
CHINA RES BEER (00291.HK)'s 2025 annual results missed expectations, with a revenue of RMB37.985 billion during the period, down 1.7% YoY, missing UBS' forecast, UBS released a research report saying.

Recurring EBITDA was RMB9.11 billion, down 1.5% YoY, also below the broker's estimation. However, its beer business performed well, with a sales volume growth of 1.4%, while baijiu business continued to be a drag, with 2H25 EBITDA falling by 89.5%, mainly due to widespread destocking in the industry channels, in the broker's view.

Its 2025 total DPS increased by about 34% YoY to RMB1.021. Excluding the impairment of goodwill in the baijiu business, the Group's dividend payout ratio slightly improved to 53%.

UBS slightly adjusted its earnings forecast, and cut its target price from $32.46 to $31.34, corresponding to a projected 2026 PE ratio of about 14x or an EV/EBITDA multiple of about 8.5x, with rating kept at Buy, given its resilient beer business performance and the current depressed valuation.
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