Goldman Sachs: Lowering the target price of China Resources Beer (00291) to HK$35.15, the profit is expected to be reduced by nearly 10% in the medium term

The Zhitong Finance App learned that Goldman Sachs released a research report stating that the target price of China Resources Beer (00291) was lowered to HK$35.15, maintaining a “buy” rating. The bank predicts that China Resources Brewery's revenue for the first half of this year will increase 2% year-on-year to 24.5 billion yuan. Recurring net profit is expected to drop 2% to 5.3 billion yuan, while net profit is expected to fall 9% to 5.29 billion yuan. The beer business performed steadily during the period, while the liquor business dragged down profit performance. Due to weak consumer sentiment and continued industry inventory removal, liquor sales fell 10% year-on-year in the first half of the year, and operating losses increased compared to the same period last year.

The bank said that the beer business faced pressure on packaging materials costs and increased marketing expenses in the second quarter, but high-end development and continued increase in market share helped offset the related impact. In response to adjustments in the beer business and liquor business forecasts, Goldman Sachs raised China Resources Beer's 2026-2028 revenue forecast by up to 1%, and lowered its profit forecast by 3.2%, 3.5% and 4%.