Morgan Stanley: Resignation of CHINA RES BEER (00291) chairman will not cause significant changes to company strategy, maintains "accumulate" rating.

Morgan Stanley released a research report stating that CHINA RES BEER (00291) announced that Hou Xiaohai resigned as chairman of the board, and the president of the company, Zhao Chunwu, will temporarily assume the responsibilities of the chairman of the board during the transition period. Since Hou Xiaohai disclosed in May that he had sold his shares in Run Beer, the event may not have come as a complete surprise to the market. Morgan Stanley gave the stock a "hold" rating with a target price of HK$34. Morgan Stanley believes that the leadership change at Run Beer is unlikely to result in major changes to the company's strategy, and the market may be waiting for clarity on the succession plan. The company is expected to focus on product and channel diversification this year to drive beer sales growth and profit margin expansion, and to achieve better operational efficiency in all business lines. The alcohol business may continue to face challenges from weak demand.