Huatai Securities: Ups the target price of China Resources Beer to HK$38.59 and maintains a "buy" rating.

Huatai Securities released a research report stating that China Resources Beer's revenue for the first half of the year was 23.94 billion yuan, an increase of 0.8% year-on-year; net profit attributable to shareholders was 5.79 billion yuan, an increase of 23% year-on-year, exceeding market expectations. Looking ahead, it is expected that the company's high-end and popular beer products will continue to increase in both volume and price in the second half of the year. Focus will be on price recovery for premium liquor, promotion of glass-bottled beer and beer channel reuse, with expectations of business improvement and continued profit growth driven by the Three Principles and cost advantages. Looking ahead to the second half of the year, the company will focus on new consumer trends, combined with continued cost advantages and implementation of the Three Principles, with expectations of continued high-quality development. Taking into account the one-time income from the company's investment relocation, as well as significant cost savings, the bank has raised the company's profit forecast, expecting earnings per share of 1.85 yuan, 1.82 yuan, and 1.93 yuan for 2025 to 2027. The target price has been raised from 37.41 HKD to 38.59 HKD, maintaining a "buy" rating.