<Research>M Stanley: CR BEVERAGE, XIAOCAIYUAN Among HK Consumer Stocks Favored by Southbound Funds

The analyst rating from Daiwa for CHINA RES BEER is reiterated as "Buy" due to the company's strong execution and flexible strategy, which allows it to effectively respond to the rapidly changing preferences of young Chinese consumers. The management's focus on embracing new channels and developing innovative flavors is seen as a positive factor. However, the rating comes with a cautionary note, as Daiwa has lowered its core EPS forecasts for 2025-2027 by 4% due to a potential slowdown in the expansion rate of average selling price and profit margin. Consequently, the target price has been adjusted from $38 to $36, based on a target PE ratio of 18x for 2026.

The analyst rating for CHINA RES BEER (00291.HK) was kept at "Outperform" by CCBI due to a 10% year-over-year increase in core earnings, which slightly beat expectations. Additionally, the broker raised its earnings forecasts for 2025 and 2026 by 13% and 9%, respectively, to account for one-off gains and improved beer product margins. Consequently, the target price was increased from $33.6 to $35.1.

The analyst rating for CHINA RES BEER (00291.HK) from DBS Group Research is attributed to the company's better-than-expected 1H25 core earnings, which are driven by noticeable sales growth and effective cost control. The report highlights that CHINA RES BEER is accelerating its channel expansion and benefiting from increased household consumption, contributing to its rapid growth. Additionally, the company's profit rebound from July to August supports low single-digit sales growth and a slight increase in average prices for the year. As a result, DBS Group Research has lifted its target price and maintained a Buy rating.