CMBC International: Upgrades China Resources Beer target price to HKD 35.1, core profits in the first half of the year slightly exceeded expectations.

CICC International released a research report stating that CR Beer's core profit increased by 10% year-on-year, slightly exceeding expectations. The company declared a mid-term dividend of 0.373 yuan per share, with a dividend 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-time gains and better beer product profits. The bank raised the group's target price from HK $33.6 to HK $35.1 and maintained an "outperform" rating. Looking ahead, the bank remains cautious about the sales growth prospects of CR Beer's white wine business, expecting policy effects to continue. However, due to stable product prices and cost controls on sales, general, and administrative expenses, it is expected that the business losses in the second half of the year will narrow.