Citi Research: CHINA RES BEER (00291.HK) Excels in Various Metrics; No Goodwill Impairment Reported for Baijiu Business
Financial Performance: CHINA RES BEER reported a 17% year-on-year increase in core net profit for its beer business, surpassing Citi Research's expectations, with revenue up 3% YoY.
Market Comparison: The company's performance significantly outperformed BUD APAC, which experienced a 10% YoY decline in sales in China and an 11% drop in core EBITDA.
Baijiu Business Resilience: Despite a 34% YoY revenue decline in the baijiu segment, there was no goodwill impairment, and the company declared a 24% YoY increase in interim dividends, reflecting confidence in future performance.
Broker Recommendations: Citi Research maintains a "Buy" rating on CHINA RES BEER, setting a target price of $35.6, favoring it over competitors like BUD APAC and TSINGTAO BREW.
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AH Smart Index Removes CEA/TSINGTAO BREWERY and Adds SANY HEAVY INDUSTRIES/SERES
Index Review Announcement: The China Securities Index Company and Hang Seng Indexes Company released the half-yearly review results for the Hang Seng CSI Shanghai-Hong Kong AH Smart Index, which includes the largest 50 AH companies under the Shanghai-Hong Kong Stock Connect programme.
Constituent Changes: The index maintains 50 constituent companies, with SANY HEAVY INDUSTRIES and SERES being newly included, while CEA and TSINGTAO BREWERY were excluded.
Future Share Class Determination: The share classes of the companies included in the index will be determined in March 2026, aligning with the monthly share class switching exercise.
Market Data: The report includes short selling data for the excluded companies, indicating significant short selling activity and ratios for both CEA and TSINGTAO BREWERY.
HSI Rises by 141 Points on Settlement Day as Chinese Developers Soar; Consumer Stocks Improve After Noon
Market Performance: Hong Kong stocks rose on the settlement date, with the HSI increasing by 141 points (0.5%) to close at 27,968, while the HSCEI gained 40 points (0.4%) to finish at 9,552. The HSTECH, however, fell by 59 points (1%) to close at 5,841.
Chinese Developers Surge: Significant gains were observed among Chinese developers, attributed to reports that they are no longer required to report the "Three Red Lines" metrics monthly. Notable increases included KWG GROUP (+40.96%), CHINA AOYUAN (+32.88%), and SUNAC (+29.13%).
Short Selling Activity: The short selling activity was notable, with various developers experiencing high ratios, such as SHIMAO GROUP (6.765%) and CIFI HOLD GP (1.472%), indicating a mix of investor sentiment in the market.
Consumer Stocks Rise: Consumer stocks also saw increases, with ZJLD surging by 12.35% and CTG DUTY-FREE by 7.98%, alongside other notable gains in companies like TSINGTAO BREW (+5.63%) and ANTA SPORTS (+4.80%).
<Research> Bernstein Reveals Top Asia-Pacific Picks for First Half of 2026 (Table)
CNOOC and JD.com Short Selling: CNOOC has a short selling value of $28.22M with a ratio of 3.983%, while JD.com shows a significantly higher short selling value of $91.22M and a ratio of 19.039%.
Stock Performance of Various Companies: Companies like SK hynix, Samsung Electronics, and MediaTek are mentioned, with some showing minor fluctuations in stock prices.
Brent Oil Price Forecast: Citi has raised its three-month Brent oil price forecast to $70 per barrel, indicating a positive outlook for oil prices.
Short Selling Data Overview: The report includes short selling data for various companies, with notable figures for Tsingtao Brew and Kunlun Energy, reflecting varying levels of market activity.
Citi Lowers BUD APAC's Target Price to HKD11.4 and Reduces Sales and Profit Projections
Citi's Sales Forecast Adjustment: Citi has reduced its 2025-27 sales forecasts for BUD APAC by 3% to 4% due to a less favorable outlook for its China business, particularly for 4Q25 sales impacted by the timing of the Lunar New Year in 2026.
Core Net Profit Forecasts Cut: The bank has also lowered its core net profit forecasts for BUD APAC by 10% for 2025 and 2026, and by 9% for 2027, reflecting weakened operating leverage.
Target Price Revision: BUD APAC's target price has been decreased from HKD12.4 to HKD11.4, although Citi maintains a Buy rating on the stock.
Preference for Chinese Beer Makers: Citi's ranking of Chinese beer makers remains unchanged, with BUD APAC positioned below CHINA RES BEER and TSINGTAO BREW in their preference order.
Citi Raises TSINGTAO BREW's Target Price to HKD76.1, Maintains Buy Rating
Citi's Profit Forecast Adjustment: Citi has lowered its core net profit forecasts for TSINGTAO BREW for 2025-26 by 2% and 3%, along with a 1% reduction in revenue forecasts.
Valuation Benchmark Update: The valuation benchmark has been adjusted to 2026 EV/EBITDA, with an unchanged estimated target EV/EBITDA multiple of 12 times.
Target Price Increase: Citi raised its target price for TSINGTAO BREW from HKD75.2 to HKD76.1 while maintaining a Buy rating.
Short Selling Data: As of January 9, 2026, short selling for TSINGTAO BREW was reported at $41.58 million, with a ratio of 21.474%.
G Sachs Reveals Constituents of CN Offshore 'VIP' Basket (Table)
Stock Performance: Several stocks experienced declines, with CATL dropping 3.44% and BABA-W down 1.57%, while some stocks like WUXI APPTEC and Luckin Coffee saw gains.
Short Selling Activity: High short selling ratios were noted for multiple companies, including NETEASE MUSIC at 32.83% and SHENZHOU INTL at 34.31%, indicating significant bearish sentiment.
Market Predictions: Analysts from Goldman Sachs and Morgan Stanley provided forecasts, predicting weak construction activity in China's housing market and potential upside for metal stocks driven by ESS demand.
Overall Market Trends: The overall market showed mixed results, with some stocks facing pressure while others managed to gain, reflecting a volatile trading environment.
AH Smart Index Removes CEA/TSINGTAO BREWERY and Adds SANY HEAVY INDUSTRIES/SERES
Index Review Announcement: The China Securities Index Company and Hang Seng Indexes Company released the half-yearly review results for the Hang Seng CSI Shanghai-Hong Kong AH Smart Index, which includes the largest 50 AH companies under the Shanghai-Hong Kong Stock Connect programme.
Constituent Changes: The index maintains 50 constituent companies, with SANY HEAVY INDUSTRIES and SERES being newly included, while CEA and TSINGTAO BREWERY were excluded.
Future Share Class Determination: The share classes of the companies included in the index will be determined in March 2026, aligning with the monthly share class switching exercise.
Market Data: The report includes short selling data for the excluded companies, indicating significant short selling activity and ratios for both CEA and TSINGTAO BREWERY.
HSI Rises by 141 Points on Settlement Day as Chinese Developers Soar; Consumer Stocks Improve After Noon
Market Performance: Hong Kong stocks rose on the settlement date, with the HSI increasing by 141 points (0.5%) to close at 27,968, while the HSCEI gained 40 points (0.4%) to finish at 9,552. The HSTECH, however, fell by 59 points (1%) to close at 5,841.
Chinese Developers Surge: Significant gains were observed among Chinese developers, attributed to reports that they are no longer required to report the "Three Red Lines" metrics monthly. Notable increases included KWG GROUP (+40.96%), CHINA AOYUAN (+32.88%), and SUNAC (+29.13%).
Short Selling Activity: The short selling activity was notable, with various developers experiencing high ratios, such as SHIMAO GROUP (6.765%) and CIFI HOLD GP (1.472%), indicating a mix of investor sentiment in the market.
Consumer Stocks Rise: Consumer stocks also saw increases, with ZJLD surging by 12.35% and CTG DUTY-FREE by 7.98%, alongside other notable gains in companies like TSINGTAO BREW (+5.63%) and ANTA SPORTS (+4.80%).
<Research> Bernstein Reveals Top Asia-Pacific Picks for First Half of 2026 (Table)
CNOOC and JD.com Short Selling: CNOOC has a short selling value of $28.22M with a ratio of 3.983%, while JD.com shows a significantly higher short selling value of $91.22M and a ratio of 19.039%.
Stock Performance of Various Companies: Companies like SK hynix, Samsung Electronics, and MediaTek are mentioned, with some showing minor fluctuations in stock prices.
Brent Oil Price Forecast: Citi has raised its three-month Brent oil price forecast to $70 per barrel, indicating a positive outlook for oil prices.
Short Selling Data Overview: The report includes short selling data for various companies, with notable figures for Tsingtao Brew and Kunlun Energy, reflecting varying levels of market activity.
Citi Lowers BUD APAC's Target Price to HKD11.4 and Reduces Sales and Profit Projections
Citi's Sales Forecast Adjustment: Citi has reduced its 2025-27 sales forecasts for BUD APAC by 3% to 4% due to a less favorable outlook for its China business, particularly for 4Q25 sales impacted by the timing of the Lunar New Year in 2026.
Core Net Profit Forecasts Cut: The bank has also lowered its core net profit forecasts for BUD APAC by 10% for 2025 and 2026, and by 9% for 2027, reflecting weakened operating leverage.
Target Price Revision: BUD APAC's target price has been decreased from HKD12.4 to HKD11.4, although Citi maintains a Buy rating on the stock.
Preference for Chinese Beer Makers: Citi's ranking of Chinese beer makers remains unchanged, with BUD APAC positioned below CHINA RES BEER and TSINGTAO BREW in their preference order.
Citi Raises TSINGTAO BREW's Target Price to HKD76.1, Maintains Buy Rating
Citi's Profit Forecast Adjustment: Citi has lowered its core net profit forecasts for TSINGTAO BREW for 2025-26 by 2% and 3%, along with a 1% reduction in revenue forecasts.
Valuation Benchmark Update: The valuation benchmark has been adjusted to 2026 EV/EBITDA, with an unchanged estimated target EV/EBITDA multiple of 12 times.
Target Price Increase: Citi raised its target price for TSINGTAO BREW from HKD75.2 to HKD76.1 while maintaining a Buy rating.
Short Selling Data: As of January 9, 2026, short selling for TSINGTAO BREW was reported at $41.58 million, with a ratio of 21.474%.
G Sachs Reveals Constituents of CN Offshore 'VIP' Basket (Table)
Stock Performance: Several stocks experienced declines, with CATL dropping 3.44% and BABA-W down 1.57%, while some stocks like WUXI APPTEC and Luckin Coffee saw gains.
Short Selling Activity: High short selling ratios were noted for multiple companies, including NETEASE MUSIC at 32.83% and SHENZHOU INTL at 34.31%, indicating significant bearish sentiment.
Market Predictions: Analysts from Goldman Sachs and Morgan Stanley provided forecasts, predicting weak construction activity in China's housing market and potential upside for metal stocks driven by ESS demand.
Overall Market Trends: The overall market showed mixed results, with some stocks facing pressure while others managed to gain, reflecting a volatile trading environment.
