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

• Market Cap: HK$25.18B
• Dividend Yield: 6.28%
• Average Volume (3M): 4.85M
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.70
• 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): 0.20
• 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$10.75
• Price Target Upside: 2.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: HK$12.50 ▲(19.62% 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

Strong Brand Presence

C'estbon's strong brand presence and market leadership in bottled water provide a durable competitive advantage, supporting long-term revenue stability.

Robust Financial Health

Minimal leverage and a solid equity base enhance financial stability, enabling strategic investments and resilience against economic fluctuations.

Profit Margin Improvement

Improved profit margins indicate efficient operations and cost management, supporting sustainable profitability and shareholder returns.

Negative Factors

Profit Warning

The profit warning signals potential challenges in maintaining profitability due to strategic adjustments, impacting short to medium-term financial performance.

Cash Flow Concerns

Negative free cash flow suggests cash constraints, potentially limiting flexibility for future investments and operational expansions.

Decreased Operating Cash Flow

A decline in operating cash flow indicates challenges in converting revenue into cash, which could affect liquidity and operational funding.

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

Company Description

China Resources Beverage (Holdings) Company Limited is a leading beverage manufacturer and distributor in China, primarily involved in the production and sale of non-alcoholic beverages. The company operates in various sectors, including soft drinks, bottled water, and tea products, and is known for its popular brands such as 'China Resources Snow Beer' and 'C'estbon' bottled water. With a strong focus on quality and innovation, China Resources Beverage leverages its extensive distribution network to cater to a diverse range of consumers across the country.

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: 10.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 10.45 is below the 20-day moving average (MA) of 10.56, below the 50-day MA of 10.77, and below the 200-day MA of 12.02, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 42.19 is Neutral, neither overbought nor oversold. The STOCH value of 60.92 is Neutral, 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$25.18B	12.27	―	6.28%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
6868	61 Neutral	HK$3.13B	24.58	6.81%	3.75%	-16.51%	-35.38%
1115	44 Neutral	HK$2.87B	-4.16	-20.18%	―	-9.19%	-67.34%

China Resources Beverage (Holdings) Company Limited Corporate Events

China Resources Beverage Proposes Domicile Change to Hong Kong

China Resources Beverage (Holdings) Company Limited has announced a proposal to change its domicile from the Cayman Islands to Hong Kong. This move is in line with the new company re-domiciliation regime introduced by the Hong Kong government, which aims to simplify compliance and reduce costs for non-Hong Kong corporations. The change will not affect the company’s assets, management, or shareholder interests, and the company will maintain its listing status on the Hong Kong Stock Exchange. The re-domiciliation is expected to provide a more stable and predictable business environment, benefiting from Hong Kong’s strong rule of law and efficient governance.