Citi: Downgrades the target price of CHINA RES BEER (00291) to HKD 34.23, maintains "Buy" rating.

Citibank released a research report stating that the bank has cut its profit forecasts for CHINA RES BEER (00291) for 2026 to 2028 by 13%, 12%, and 12% respectively. The rating remains a "Buy," but the target price has been lowered from HKD 39.8 to HKD 34.23. The bank continues to list China Resources Beer as an industry preferred stock. In the first half of the year, CHINA RES BEER saw a year-on-year increase of 2% in beer sales. However, due to a decrease in the average price of mid-range and lower-end products and an increase in aluminum can costs, the company's gross profit margin narrowed by 1.2 percentage points year-on-year. The bank expects that, due to a lower comparison base in the second half of the year, China Resources Beers total beer sales will grow by 3% year-on-year, while the beer EBIT profit margin is expected to narrow by 10 basis points year-on-year. Additionally, management plans to increase the dividend payout ratio to over 55%, which may support the stock price.