Equity Analysis /
Hong Kong

HK : China Resources Beer - Accelerating penetration of the high-end beer market

    Lei Yang
    Lei Yang

    Research Analyst

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    CGS-CIMB
    17 January 2021
    Published byCGS-CIMB

    We hosted a conference call with CRB management and continue to maintain a positive view on CRB’s business performance in FY21F. CRB has accelerated its product structure upgrade since the integration of Heineken China in 2020, and the sales volume of premium and above products rose by 7% yoy in 9M20 vs. 2.9% yoy in 1H20. We expect total sales to grow by 8.1% yoy in FY21F with core net profit up by 30.7%. Reiterate ADD with a higher DCF-based TP of HK$78.