CCB International Raises China Resources Beer (00291) Target Price to HK$35.1 on Better-Than-Expected H1 Core Earnings

Stock News
Aug 22

CCB International released a research report stating that China Resources Beer (00291) achieved 10% year-over-year growth in core earnings, slightly exceeding expectations. The company declared an interim dividend of RMB 0.373, maintaining a payout ratio of 26%. The firm raised its earnings forecasts for the group by 13% for this year and 9% for next year, reflecting one-time gains and improved beer product margins. CCB International upgraded the group's target price from HK$33.6 to HK$35.1 while maintaining an "Outperform" rating. Looking ahead, the firm remains cautious about the growth prospects of China Resources Beer's spirits business sales, expecting policy impacts to persist. However, due to relatively stable product pricing and controlled selling, general and administrative expenses, business losses are expected to narrow in the second half of the year.

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