China Resources Beer (Holdings) Co (0291) AI Stock Analysis

• Market Cap: $84.09B
• Dividend Yield: 3.45%
• Average Volume (3M): 10.99M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.22
• Revenue Growth: -0.31%
• EPS Growth: 10.85%
• Country: HK
• Employees: 26,059
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 1.96
• Shares Outstanding: 3,244,177,000
• 10 Day Avg. Volume: 11,409,944
• 30 Day Avg. Volume: 10,993,231
• PEG Ratio: -1.99
• Price to Book (P/B): 2.43
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 18.70
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 2.54
• Enterprise Value/Gross Profit: 6.11
• Enterprise Value/Ebitda: 16.46
• 1Y Price Target: $38.29
• Price Target Upside: 42.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: HK$29.00 ▲(7.65% Upside)

China Resources Beer (Holdings) Co scores well due to its solid financial performance and attractive valuation. The company's strong profitability and robust balance sheet are significant strengths. However, technical indicators suggest some short-term weakness, which slightly tempers the overall score.

Positive Factors

Market Position

Dominance of Snow Beer in China secures a strong market position, providing a competitive edge and stable revenue base.

Strategic Partnerships

Partnership with Heineken enhances product diversity and global reach, strengthening market competitiveness and growth potential.

Balance Sheet Health

A low debt-to-equity ratio indicates strong financial stability, providing flexibility for future investments and growth.

Negative Factors

Revenue Growth Inconsistency

Inconsistent revenue growth can hinder long-term planning and investment, affecting overall business stability and investor confidence.

Declining Cash Position

A declining cash position can limit operational flexibility and increase vulnerability to market fluctuations, impacting financial health.

Free Cash Flow Volatility

Volatile free cash flow can complicate financial planning and investment decisions, potentially affecting long-term strategic initiatives.

China Resources Beer (Holdings) Co Business Overview & Revenue Model

Company Description

China Resources Beer (Holdings) Company Limited, an investment holding company, manufactures, distributes, and sells beer products. The company offers its products under the Heineken, Li, Löwen Fruit Beer, Snow Xiao Pi Qi, Amstel, and Edelweiss brand names. As of March 24, 2022, it operated 65 breweries in 24 provinces, municipalities, and autonomous regions in Mainland China. The company also engages in the manufacture and distribution of Baijiu products; and development and management of real estate. The company was formerly known as China Resources Enterprise, Limited and changed its name to China Resources Beer (Holdings) Company Limited in October 2015. The company is based in Wan Chai, Hong Kong. China Resources Beer (Holdings) Company Limited is a subsidiary of China Resources (Holdings) Company Limited.

How the Company Makes Money

China Resources Beer generates revenue primarily through the sale of its beer products, with a significant portion coming from its extensive distribution network throughout China. The company benefits from economies of scale, allowing it to produce beer at competitive prices while maintaining quality. Key revenue streams include the sales of its flagship Snow Beer, which dominates the Chinese market, as well as premium and craft beer lines that cater to evolving consumer tastes. Additionally, China Resources Beer invests in marketing and promotional activities to enhance brand visibility and drive sales. Strategic partnerships with retailers, distributors, and e-commerce platforms also play a crucial role in expanding market reach and increasing sales volume. Seasonal promotions and product innovations contribute to revenue growth, while the overall growth of the beer market in China bolsters the company's financial performance.

China Resources Beer (Holdings) Co Financial Statement Overview

Summary

China Resources Beer (Holdings) Co demonstrates solid financial health with strong profitability and a robust balance sheet. The company exhibits effective cash flow management, although recent revenue growth has been inconsistent. Overall, the company is well-positioned within the alcoholic beverages industry, but should monitor liquidity and strive for consistent revenue expansion.

Income Statement

The company shows solid profitability, with a stable gross profit margin around 42-44% over recent years. Net profit margin has improved, reaching 12.3% in 2024. Revenue growth has been inconsistent, with a slight decline in 2023. However, EBIT and EBITDA margins have strengthened, indicating improved operational efficiency.

Balance Sheet

The balance sheet is robust, with a low debt-to-equity ratio of 0.07 in 2024, reflecting low financial leverage. The equity ratio is healthy at 45.7%, indicating a strong capital base. Return on Equity (ROE) is solid at 14.9%, showcasing effective utilization of equity. However, a declining cash position may pose liquidity risks.

Cash Flow

Cash flow from operations is strong, covering capital expenditures with a free cash flow of approximately 4.1 billion HKD in 2024. The operating cash flow to net income ratio is robust, indicating good cash generation relative to profits. Free cash flow growth has been volatile, with significant improvement in recent years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.61B	38.63B	38.93B	35.26B	33.39B	31.45B
Gross Profit	12.32B	16.48B	16.10B	13.56B	13.07B	12.07B
EBITDA	4.58B	9.08B	9.54B	8.38B	9.53B	5.03B
Net Income	3.21B	4.74B	5.15B	4.34B	4.59B	2.09B
Balance Sheet
Total Assets	71.19B	69.31B	71.52B	57.31B	51.05B	43.77B
Cash, Cash Equivalents and Short-Term Investments	10.29B	3.82B	5.52B	11.80B	7.09B	5.39B
Total Debt	1.17B	2.30B	5.29B	1.21B	131.00M	200.00M
Total Liabilities	31.12B	33.72B	37.35B	31.55B	26.56B	24.02B
Stockholders Equity	36.20B	31.69B	30.30B	33.31B	32.95B	27.96B
Cash Flow
Free Cash Flow	2.75B	4.12B	1.63B	5.87B	4.32B	4.08B
Operating Cash Flow	3.98B	6.93B	4.15B	7.75B	6.13B	5.32B
Investing Cash Flow	-2.33B	-2.13B	-9.69B	-1.06B	-2.75B	-1.07B
Financing Cash Flow	-3.56B	-6.49B	927.00M	-811.00M	-1.37B	-1.20B

China Resources Beer (Holdings) Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0291, the sentiment is Negative. The current price of 26.94 is below the 20-day moving average (MA) of 27.53, below the 50-day MA of 27.20, and above the 200-day MA of 26.42, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 40.05 is Neutral, neither overbought nor oversold. The STOCH value of 7.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0291.

China Resources Beer (Holdings) Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0168	75 Outperform	HK$80.82B	13.87	14.80%	4.69%	1.51%	5.50%
1876	73 Outperform	HK$104.42B	22.60	5.74%	5.59%	-9.54%	-27.75%
0291	69 Neutral	$84.09B	13.44	16.77%	3.45%	-0.31%	10.85%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0236	56 Neutral	HK$452.02M	-56.02	-1.15%	4.13%	2.77%	-110.76%

China Resources Beer (Holdings) Co Corporate Events

China Resources Beer Extends Business Travel Services Agreement

China Resources Beer has entered into a new Business Travel Services Framework Agreement with China Resources Digital, effective from January 1, 2026, to December 31, 2028. This agreement, which involves continuing connected transactions, ensures the provision of business travel services to the company, with implications for compliance under the Hong Kong Stock Exchange’s listing rules.

China Resources Beer Announces Key Board Appointments

China Resources Beer (Holdings) Co has announced significant changes in its board composition, effective from November 18, 2025. Mr. Xu Lin and Ms. Yang Hongxia have been appointed as executive directors, with Ms. Yang also joining the finance and share options general committees. Additionally, Ms. Hon Wai Man Samantha has been appointed as an independent non-executive director, joining the nomination and compensation committees. These appointments are expected to enhance the company’s governance and strategic oversight, potentially impacting its market positioning and stakeholder relations.

China Resources Beer Announces Board Composition and Roles

China Resources Beer (Holdings) Co has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement provides insights into the company’s governance structure, which could influence its strategic direction and operational efficiency, potentially impacting stakeholders and market positioning.

China Resources Beer Announces Key Executive Appointments

China Resources Beer (Holdings) Co has announced significant changes in its leadership, effective from October 10, 2025. Mr. Jin Hanquan has been appointed as the executive director and president, Mr. Li Nan as a non-executive director, and Ms. Yang Hongxia as the chief financial officer. These appointments are expected to impact the company’s operations and governance structure, potentially influencing its strategic direction and market positioning.

China Resources Beer Updates Board of Directors

China Resources Beer (Holdings) Co has announced the updated list of its board of directors, highlighting the roles and functions of each member. This update reflects the company’s commitment to maintaining a robust governance structure, which is crucial for its strategic decision-making and operational effectiveness, potentially impacting stakeholders positively by ensuring transparency and accountability.

Leadership Change at China Resources Beer

China Resources Beer (Holdings) Co announced the resignation of Mr. Zhao Wei as Executive Director and Chief Financial Officer, effective September 23, 2025, due to other work arrangements. The company expressed gratitude for Mr. Zhao’s contributions and stated that a new appointment would be announced in due course. This change in leadership is part of the company’s ongoing adjustments to its board committee composition, potentially impacting its strategic direction and stakeholder relations.