＜Research＞Jefferies Claims CR BEER Shr Price Reflects Weak Biz Outlook, Uncertainty in SOE's Remuneration Package

　　According to a recent report by Jefferies, CHINA RES BEER (00291.HK) -0.500 (-2.101%) Short selling $57.16M; Ratio 12.170% trades at 13x 2024E P/E with a dividend yield of around 4%, which is at the low end of the global valuation range. It is believed to have reflected the weak business outlook and the uncertainty in the remuneration package for the executives of the state-owned enterprise (SOE) (which may dampen CHINA RES BEER's management's motivation).

　　The broker continued to prefer beer stocks, with CHINA RES BEER as its top pick, followed by BUD APAC (01876.HK) -0.130 (-1.384%) Short selling $97.56M; Ratio 57.073% , TSINGTAO BREW (00168.HK) +0.300 (+0.628%) Short selling $33.07M; Ratio 10.029% , and Chongqing Brewery, in the light of a favorable competitive environment with a highly concentrated market share and a lack of new entrants, CHINA RES BEER's low-mid teens P/E, and the fact that the market is unlikely to be surprised by CHINA RES BEER's potential downward revision of its full-year earnings guidance.

　　Related NewsHSBC Global Research Cuts TPs on Beer Stocks; CR BEER, TSINGTAO BREW Preferred

　　Jefferies predicted CHINA RES BEER's full-year net profit to rise 7.8% YoY, while its interim sales and recurring net profit are expected to be flat and up 3% YoY respectively. The broker also pointed out that CHINA RES BEER is maintaining its operational competitiveness with its continuous recruitment of senior management positions throughout the market. It continued to give a Buy rating on CHINA RES BEER with a TP of $42.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-29 16:25.)

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