UOB Kay Hian Lowers CHINA RES BEER (00291) Target Price to HK$33.8, Maintains "Buy" Rating

Stock News
Aug 20

UOB Kay Hian released a research report stating that CHINA RES BEER (00291) delivered first-half results that exceeded expectations. Sales volume of sub-premium and above beer products grew at mid-to-high single digits, driving up the average selling price. Under the 15th Five-Year Plan, the company will continue to focus on Heineken as its core brand while strengthening the sub-premium market as another growth driver. The firm expects that the baijiu business will not deteriorate further during the second-half adjustment period, though any potential impairment will still depend on business operations. The rating remains "Buy" with the target price lowered from HK$35 to HK$33.8 to reflect the weakness in the baijiu business.

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