Bank of China International: Upgrade target price of China Resources Beer (00291.HK) to 35.1 Hong Kong dollars, core profits in the first half slightly exceeded expectations

According to the Zhifutong Financial APP, CIMB International released a research report stating that China Resources Beer (00291.HK) core profits increased by 10% year-on-year, slightly exceeding expectations. The company declared a mid-term dividend of 0.373 RMB, with a payout ratio maintained at 26%. The bank raised the group's profit forecast for the next two years by 13% and 9% to reflect one-off gains and better beer product profits. The bank raised the group's target price from 33.6 HKD to 35.1 HKD, maintaining an "outperform the market" rating. Looking ahead, the bank remains cautious about the growth prospects of China Resources Beer's liquor business and expects policy impacts to continue. However, due to stable product prices and normalized sales, general, and administrative expenses, it is expected that business losses will narrow in the second half of the year.