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

• Market Cap: HK$84.51B
• Dividend Yield: 3.2%
• Average Volume (3M): 13.45M
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.21
• Revenue Growth: -3.20%
• EPS Growth: -11.50%
• Country: HK
• Employees: 26,059
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Beverages - Alcoholic
• EPS (TTM): 0.01
• Shares Outstanding: 3,244,177,000
• 10 Day Avg. Volume: 13,339,483
• 30 Day Avg. Volume: 13,445,548
• PEG Ratio: 2.86
• Price to Book (P/B): 5.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 42.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$35.63
• Price Target Upside: 35.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: HK$29.00 ▲(10.48%Upside)

The overall score reflects strong financial performance and attractive valuation, offset by neutral technical indicators. Solid profitability and a healthy balance sheet are significant positives. The stock may offer value, but inconsistent revenue growth and liquidity monitoring are necessary.

Positive Factors

Financial Performance

Favourable barley prices supported gross margin expansion, with an estimated improvement in the beer segment's gross margin.

Premiumisation and Brand Growth

CR Beer continues to focus on geographical expansion of featured premium brands, with Heineken sales volume expected to grow 15-20%.

Shareholder Returns

Analyst maintains a BUY recommendation given undemanding valuation and enhanced shareholder returns, with management aiming for 60% or higher dividend payout.

Negative Factors

Consumer Demand

Weaker consumer demand, rising competition, and higher-than-expected raw material costs are challenges facing the company.

Leadership Changes

The market may react negatively to Mr. Hou's departure given his personal influence and leadership role.

Volume Decline

Beer revenue continued small decline, dragged by volume drop, but outperformed major peers.

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

Company Description

China Resources Beer (Holdings) Co (0291) is a leading player in the beer industry, primarily operating in the production, distribution, and sale of beer products. The company is best known for its flagship brand, Snow Beer, which is one of the top-selling beer brands globally. As part of the China Resources Group, it leverages an extensive distribution network across China to reach a wide consumer base, offering a diverse portfolio of beer products that cater to various taste preferences and market segments.

How the Company Makes Money

China Resources Beer makes money primarily through the sale of its beer products, which include a wide range of offerings from premium to mass-market beers. The company's main revenue stream is the domestic market in China, where it capitalizes on its strong brand recognition and expansive distribution channels. Revenue is further augmented through strategic partnerships and joint ventures, such as its collaboration with SABMiller, which help in enhancing production capabilities and expanding market reach. Additionally, the company benefits from economies of scale and efficient supply chain management, which improve profitability. Marketing initiatives and continuous product innovation also play a crucial role in driving sales and maintaining market leadership.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.63B	38.93B	35.26B	33.39B	31.45B
Gross Profit	16.48B	16.10B	13.56B	13.07B	12.07B
EBITDA	9.08B	9.54B	8.38B	9.53B	5.41B
Net Income	4.74B	5.15B	4.34B	4.59B	2.09B
Balance Sheet
Total Assets	69.31B	71.52B	57.31B	51.05B	43.77B
Cash, Cash Equivalents and Short-Term Investments	3.82B	5.52B	11.80B	7.09B	5.39B
Total Debt	2.30B	5.29B	1.21B	131.00M	200.00M
Total Liabilities	33.72B	37.35B	31.55B	29.68B	24.02B
Stockholders Equity	31.69B	30.30B	33.31B	32.95B	27.96B
Cash Flow
Free Cash Flow	4.12B	1.63B	5.87B	4.32B	4.08B
Operating Cash Flow	6.93B	4.15B	7.75B	6.13B	5.32B
Investing Cash Flow	-2.13B	-9.69B	-1.20B	-3.37B	-1.27B
Financing Cash Flow	-6.49B	927.00M	-917.84M	-1.68B	-1.42B

China Resources Beer (Holdings) Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0291, the sentiment is Positive. The current price of 26.25 is above the 20-day moving average (MA) of 24.97, above the 50-day MA of 25.75, and above the 200-day MA of 26.20, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 60.35 is Neutral, neither overbought nor oversold. The STOCH value of 89.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	78 Outperform	$85.38B	14.51	14.90%	4.61%	-4.38%	-1.21%
1876	74 Outperform	HK$105.08B	18.55	6.94%	5.51%	-9.19%	-14.90%
0291	69 Neutral	HK$84.51B	16.45	15.25%	3.20%	-3.20%	-11.50%
0236	63 Neutral	HK$366.10M	4.08	-2.97%	5.00%	-4.11%	-123.40%
Sector *	60 Neutral	HK$17.56B	11.08	0.20%	5.34%	2.68%	-48.29%

China Resources Beer (Holdings) Co Corporate Events

China Resources Beer Enhances Governance with New Nomination Committee

China Resources Beer (Holdings) Co has established a Nomination Committee to enhance its corporate governance practices. The Committee is tasked with reviewing the Board’s composition, developing nomination policies, and ensuring diversity and transparency in the selection process of Board members. This move is aimed at aligning the Board’s structure with the company’s corporate strategy and improving its governance framework.

The most recent analyst rating on (HK:0291) stock is a Buy with a HK$35.00 price target. To see the full list of analyst forecasts on China Resources Beer (Holdings) Co stock, see the HK:0291 Stock Forecast page.

Leadership Transition at China Resources Beer

China Resources Beer (Holdings) Company Limited announced the resignation of Mr. Hou Xiaohai as Executive Director and Chairman of the Board, effective June 27, 2025, to focus on personal engagements. The company has temporarily assigned Mr. Zhao Chunwu to assume the Chairman’s responsibilities while searching for a permanent successor. The board assures stakeholders that the company’s operations remain stable and unaffected by this transition.

The most recent analyst rating on (HK:0291) stock is a Buy with a HK$35.00 price target. To see the full list of analyst forecasts on China Resources Beer (Holdings) Co stock, see the HK:0291 Stock Forecast page.

China Resources Beer Announces Board Composition and Roles

China Resources Beer (Holdings) Co has announced the composition of its board of directors and their roles. The board includes executive, non-executive, and independent non-executive directors, with specific members serving on various board committees such as the Audit, Compensation, Executive, Finance, and Nomination Committees. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic decision-making and stakeholder confidence.

The most recent analyst rating on (HK:0291) stock is a Buy with a HK$35.00 price target. To see the full list of analyst forecasts on China Resources Beer (Holdings) Co stock, see the HK:0291 Stock Forecast page.

China Resources Beer Approves Key Resolutions at AGM

China Resources Beer (Holdings) Co announced that all proposed resolutions at its Annual General Meeting on May 20, 2025, were approved by shareholders. Key resolutions included the approval of the financial statements for the year ending December 31, 2024, the declaration of a final dividend, re-election of directors, and the reappointment of Deloitte Touche Tohmatsu as auditors. These approvals reflect strong shareholder support and are expected to positively impact the company’s governance and financial strategies.

The most recent analyst rating on (HK:0291) stock is a Buy with a HK$35.00 price target. To see the full list of analyst forecasts on China Resources Beer (Holdings) Co stock, see the HK:0291 Stock Forecast page.

China Resources Beer Announces Final Dividend for 2024

China Resources Beer (Holdings) Company Limited announced a final dividend for the year ended December 31, 2024, with a dividend of RMB 0.387 per share. The dividend will be paid in HKD at a rate of HKD 0.42 per share, with the payment date set for July 4, 2025. This announcement reflects the company’s financial health and commitment to providing returns to its shareholders, potentially strengthening its position in the market.

The most recent analyst rating on (HK:0291) stock is a Buy with a HK$35.00 price target. To see the full list of analyst forecasts on China Resources Beer (Holdings) Co stock, see the HK:0291 Stock Forecast page.

China Resources Beer Announces Board Changes Following Director’s Retirement

China Resources Beer (Holdings) Company Limited announced the retirement of Mr. Siu Kwing Chue, Gordon as an independent non-executive director, effective from the conclusion of the annual general meeting held on May 20, 2025. Mr. Siu’s departure also results in changes to the board committees, with Mr. Lai Hin Wing Henry Stephen taking over as the chairman of the compensation committee. The company expressed gratitude for Mr. Siu’s contributions, and he confirmed no disagreements with the board, ensuring a smooth transition.

The most recent analyst rating on (HK:0291) stock is a Buy with a HK$35.00 price target. To see the full list of analyst forecasts on China Resources Beer (Holdings) Co stock, see the HK:0291 Stock Forecast page.

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 clarity on the leadership structure, which is crucial for stakeholders to understand the company’s governance and strategic direction.

The most recent analyst rating on (HK:0291) stock is a Buy with a HK$35.00 price target. To see the full list of analyst forecasts on China Resources Beer (Holdings) Co stock, see the HK:0291 Stock Forecast page.

China Resources Beer Announces 2025 AGM and Share Buyback Proposal

China Resources Beer (Holdings) Co has announced its upcoming Annual General Meeting scheduled for May 20, 2025, in Hong Kong. Key agenda items include the consideration of financial statements, declaration of a final dividend, re-election of directors, and the reappointment of Deloitte Touche Tohmatsu as auditors. Additionally, a resolution will be discussed to authorize the company to buy back up to 10% of its issued shares, potentially impacting shareholder value and market perception.