Goldman Sachs: Slightly lowers China Resources Beer target price to 34.73 Hong Kong dollars, reiterates "buy" rating.

Goldman Sachs released a report stating that their views on China Resources Beer have become more positive after attending the company's performance release conference. The management reiterated their commitment to continue promoting high-end products and have prepared for the gradual recovery of the catering channel in the second half of 2026 through product promotion and the launch of new products. They also reiterated their mid-term dividend payout ratio target to increase to 60% to 70%. The bank raised China Resources Beer's net profit forecast for the next two years by about 1% based on the company's solid performance in regular EBIT in 2025. However, considering the increased cost pressures in the coming years, the bank lowered the target price from HK$35.4 to HK$34.73, based on a forecasted P/E ratio of 17 times in 2027. They also believe that the current risk-return ratio is attractive and reiterated a "buy" rating.