HK Stock Market Move | CHINA RES BEER (00291) rebounds more than 4%, profit margin affected by impairments, dividend payout ratio slightly improved.

CHINA RES BEER (00291) rebounded more than 4%, with the stock falling more than 5% in the afternoon yesterday. As of press time, it rose 4% to HK$24.98, with a turnover of HK$165 million. In terms of news, CHINA RES BEER released its 2025 performance yesterday, with the group achieving revenue of RMB 37.985 billion, a decrease of 1.68% year-on-year; the company's shareholders' profit attributable to owners was RMB 3.371 billion, a decrease of 28.87% year-on-year; basic earnings per share was RMB 1.04, with a proposed final dividend of RMB 0.557 per share. According to Huatai, excluding special items such as a RMB 2.88 billion impairment of goodwill in the liquor business, and real estate income/plant closures and staff reduction expenses, the net profit attributable to owners in 2025 was RMB 5.72 billion, an increase of 19.6% year-on-year. UBS stated that CHINA RES BEER's full-year performance in 2025 was below expectations, but the beer business performed well with a sales growth of 1.4%. However, the liquor business continued to be a drag, with EBITDA falling by 89.5% in the second half of the year, mainly due to industry-wide destocking efforts. The total dividend increased by approximately 34% year-on-year to RMB 1.021 per share last year, and excluding the impairment of goodwill in the liquor business, the group's dividend payout ratio slightly improved to 53%.