＜Research＞Daiwa Trims CHINA RES BEER (00291.HK) TP to $34, Expects 1H24 Rev., Earnings to Remain Largely Flat YoY

　　The share price of CHINA RES BEER (00291.HK) -0.800 (-3.162%) Short selling $50.77M; Ratio 25.809% dived by about 30% in the past 3 months, likely pricing in the poor performance of the Company's sales channel shipments in 2Q24, Daiwa released a research report saying.

　　Daiwa believed that the market is underestimating CHINA RES BEER's continued premiumization and profit resilience.

　　Related NewsCMS Suggests CHINA RES BEER (00291.HK) Shr Price Digested 1H Results, Lowers TP to $37

　　In terms of baijiu business, Daiwa expected CHINA RES BEER's 1H24 revenue for baijiu to grow by about 20% YoY, and EBITDA margin to be flat YoY. Net profit is also expected to rise by 1% YoY.

　　Taking into account the impact of weak consumer confidence and operational deleveraging, Daiwa lowered its FY2024-FY2026 EPS forecasts for CHINA RES BEER by 5-12%.

　　Summarizing the above factors, Daiwa trimmed its target price for CHINA RES BEER from $49 to $34, with rating kept at Buy.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-25 12:25.)

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