Lyon: Surprised by China Resources Beverage's profit warning, with a target price of 17.7 Hong Kong dollars.

Lyon released a report stating that China Resources Beverage has issued a profit warning, with the estimated net profit for the first half of the year expected to decrease by about 20% to 30% year-on-year. This is mainly due to increased marketing investments, unfavorable changes in product mix, and channel adjustments. Lyon pointed out that the profit warning was unexpected compared to market expectations of a profit increase of over 10% in the first half of the year. The bank believes that the increase in marketing investments is the main reason for the profit decline, although factors such as improved production efficiency have partially offset the impact. The company expects marketing investments in the second half of the year to depend on the competitiveness of the industry. Lyon has a target price of 17.7 Hong Kong dollars for China Resources Beverage and a rating of "Outperform the market".