China Resources Beverage (Holdings) Company Limited (2460) AI Stock Analysis

• Market Cap: HK$24.92B
• Dividend Yield: 6.3%
• Average Volume (3M): 4.85M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.68
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 10,970
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): N/A
• Shares Outstanding: 2,398,196,500
• 10 Day Avg. Volume: 5,034,206
• 30 Day Avg. Volume: 4,847,892
• PEG Ratio: 0.36
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 1.69
• P/FCF Ratio: -38.68
• 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$11.15
• Price Target Upside: 8.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: HK$11.00 ▲(7.32% Upside)

China Resources Beverage's strong financial performance is the primary driver of the overall score, supported by robust revenue and profit growth. Valuation metrics are favorable, with an attractive dividend yield. However, technical indicators suggest a bearish trend, which presents a risk to the stock's near-term performance.

Positive Factors

Balance Sheet Strength

Extremely low leverage and a solid equity base provide durable financial flexibility. This supports sustained investment in distribution, product innovation, and dividend capacity while buffering against demand shocks, reducing refinancing risk over the medium term.

Strong Brands & Distribution

Well-known flagship brands and a wide distribution network create lasting competitive advantages in China’s beverage market. Brand recognition and scale lower customer acquisition costs, sustain pricing power, and support cross-category expansion over multiple years.

Sustained Revenue & Margin Trends

Consistent top-line growth paired with high gross and improving net margins indicates scalable operations and productive cost management. Durable margin levels suggest structural competitiveness in production and product mix, supporting long-term cash generation potential.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow from heavy capex can strain internal funding for dividends, M&A, or debt reduction. If investments do not quickly translate into higher cash returns, the company may need to rely on external financing or slow shareholder distributions over the medium term.

Earnings-to-Cash Conversion

Net income not fully converting to cash over time raises concerns about earnings quality and working capital demands. This weak conversion can limit real free cash available for strategic initiatives and make financial performance more sensitive to inventory and receivable swings.

Volume-Driven Revenue Exposure

Dependence on volume growth and distribution partnerships exposes revenue to shifting consumer preferences, promotional intensity, and price competition. In a commoditized beverage market, sustaining volume-driven growth is challenging and can compress long-term margins if mix or pricing deteriorates.

China Resources Beverage (Holdings) Company Limited Business Overview & Revenue Model

Company Description

China Resources Beverage (Holdings) Co., Ltd. operates as an investment holding company, which engages in manufacturing and distribution of packaged drinking water and non-alcoholic beverages. The company was founded on July 4, 1995 and is headquartered in Shenzhen, China.

How the Company Makes Money

China Resources Beverage generates revenue through multiple key streams, primarily from the sale of its beverage products. The company’s revenue model is driven by the volume of products sold, which is supported by its established brand presence and strong market positioning. Key revenue streams include sales from its flagship beer brand, which is one of the top-selling beers in China, and its range of bottled water and tea products. Additionally, the company benefits from significant partnerships with distributors and retailers, enabling it to reach a wide customer base. Promotional activities and strategic marketing initiatives also contribute to increased sales and brand loyalty, further enhancing its earnings potential.

China Resources Beverage (Holdings) Company Limited Financial Statement Overview

Summary

China Resources Beverage demonstrates strong financial health with impressive revenue and profit growth. The balance sheet is robust with minimal leverage and solid equity. Although cash flow management shows areas for improvement, the overall financial position remains strong, supporting future growth potential.

Income Statement

The company has shown consistent revenue growth with a 19.3% increase from 2021 to 2024. Gross profit margin is healthy at around 47.3% for 2024, indicating efficient production operations. The net profit margin has improved to 12.1%, showcasing enhanced profitability. EBIT and EBITDA margins have also strengthened, reflecting robust operational performance.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.005, indicating minimal leverage and financial stability. The equity ratio stands at 60.5%, suggesting a solid equity base. Return on equity has improved to 14.5%, demonstrating efficient use of shareholder capital.

Cash Flow

Cash flow performance is mixed. Operating cash flow remains positive but has decreased to $1.39 billion in 2024. The free cash flow is negative due to high capital expenditures, which could indicate significant investments. The operating cash flow to net income ratio remains below 1, suggesting that net income is not fully translating into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.67B	13.52B	13.51B	12.62B	11.34B
Gross Profit	3.11B	6.40B	6.04B	5.26B	4.97B
EBITDA	1.54B	2.80B	2.38B	1.70B	1.48B
Net Income	864.80M	1.64B	1.33B	989.81M	858.14M
Balance Sheet
Total Assets	20.68B	18.69B	13.00B	10.60B	9.09B
Cash, Cash Equivalents and Short-Term Investments	12.39B	10.65B	4.37B	2.80B	1.89B
Total Debt	65.71M	56.68M	35.99M	27.55M	32.70M
Total Liabilities	9.23B	6.83B	5.63B	4.71B	4.50B
Stockholders Equity	10.87B	11.30B	6.90B	5.57B	4.58B
Cash Flow
Free Cash Flow	1.92B	-590.97M	-593.56M	-14.42M	512.51M
Operating Cash Flow	2.59B	1.39B	1.72B	844.93M	827.19M
Investing Cash Flow	-327.67M	-2.97B	-2.09B	1.22M	681.95M
Financing Cash Flow	4.19M	5.16B	-60.60M	-21.20M	-19.47M

China Resources Beverage (Holdings) Company Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.25
• 50DMA: Negative
• 100DMA: Negative
• 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:2460, the sentiment is Negative. The current price of 10.25 is above the 20-day moving average (MA) of 10.24, below the 50-day MA of 10.40, and below the 200-day MA of 11.64, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 47.40 is Neutral, neither overbought nor oversold. The STOCH value of 80.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2460.

China Resources Beverage (Holdings) Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2460	70 Outperform	HK$24.92B	12.14	―	6.30%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
6868	61 Neutral	HK$2.91B	22.88	6.81%	3.70%	-16.51%	-35.38%
1115	44 Neutral	HK$3.09B	-3.82	-20.18%	―	-9.19%	-67.34%

China Resources Beverage (Holdings) Company Limited Corporate Events

China Resources Beverage Announces New Framework Loan Agreements

China Resources Beverage (Holdings) Company Limited has entered into two Framework Loan Agreements with CRH and CRI, effective from 2026 to 2028. These agreements involve offshore and onshore loan arrangements, with specific terms regarding lenders, borrowers, and interest rates. The transactions are subject to certain reporting and review requirements under the Hong Kong Listing Rules but are exempt from independent shareholders’ approval due to the percentage ratios involved.

The most recent analyst rating on (HK:2460) stock is a Hold with a HK$10.75 price target. To see the full list of analyst forecasts on China Resources Beverage (Holdings) Company Limited stock, see the HK:2460 Stock Forecast page.

China Resources Beverage Announces Board and Committee Changes

China Resources Beverage (Holdings) Company Limited announced a change in its board of directors and committee compositions. Ms. CAO Yue has resigned from her roles due to other work arrangements, and Mr. WANG Te-kang, with over 34 years of industry experience, has been appointed as a non-executive director and chairman of the Strategy and Investment Committee. This change is expected to bring new leadership insights to the company, potentially impacting its strategic direction and market positioning.

The most recent analyst rating on (HK:2460) stock is a Hold with a HK$10.75 price target. To see the full list of analyst forecasts on China Resources Beverage (Holdings) Company Limited stock, see the HK:2460 Stock Forecast page.

China Resources Beverage Announces Board Composition and Committee Roles

China Resources Beverage (Holdings) Company Limited has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The company has also detailed the membership of its four board committees, highlighting the roles and functions of each director within these committees. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership dynamics and decision-making processes that may impact the company’s strategic direction and operational effectiveness.

The most recent analyst rating on (HK:2460) stock is a Hold with a HK$10.75 price target. To see the full list of analyst forecasts on China Resources Beverage (Holdings) Company Limited stock, see the HK:2460 Stock Forecast page.