Kirin Holdings: Hold Rating Amid Disappointing Q1 Results and Margin Challenges

In a report released yesterday, Euan McLeish from Bernstein maintained a Hold rating on Kirin Holdings Company (KNBWF – Research Report), with a price target of Yen2,100.00.

Euan McLeish has given his Hold rating due to a combination of factors affecting Kirin Holdings Company. The company’s Q1 results showed a disappointing top line, with operating profit growth falling short of expectations despite a strong performance in the underlying beverages segment. While the Australian and US craft markets demonstrated significant margin expansion, this was from a relatively low base, and the overall normalized operating profit was below forecasts.
Kirin’s Japan alcohol business experienced slower revenue growth compared to its competitor, Asahi, and faced challenges such as inventory overhang and tough comparisons from previous product launches. Additionally, the Oceania beer segment showed modest growth, but the margin expansion seen in ANZ Beer is expected to be partially reversed in the following quarter. The company’s EPS also declined due to various factors, including foreign exchange losses and asset disposals, which contributed to the Hold rating by McLeish.