Daiwa Cuts Target Price for CHINA RES BEER (00291) to HK$36, Reiterates "Buy" Rating

Stock News11-18

Daiwa released a research report stating that it hosted CHINA RES BEER's (00291) management at its Hong Kong investment conference last Friday (14th). The management emphasized adapting to new channels such as instant retail and developing new flavors (e.g., fruit-infused beer, tea-flavored beer) to cater to the rapidly changing preferences of young Chinese consumers.

Due to potential slower growth in average selling prices and profit margin expansion, Daiwa lowered its core EPS forecast for CHINA RES BEER by 4% for 2025–2027. The firm reiterated a "Buy" rating but reduced the target price from HK$38 to HK$36, based on an 18x forward P/E ratio for next year.

Daiwa believes that CHINA RES BEER's strong execution capabilities and flexible strategies position it well to adapt to the fast-evolving tastes of Chinese consumers, maintaining its preference over key competitors.

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