CMB International Securities: China Resources Beer (00291.HK) continuously rising dividend payout ratio may help support its valuation. Maintain a "buy" rating.

According to the Wisdom Financial APP, CMB International released a research report stating that it maintains a target price of HK$33.5 for China Resources Beer (00291.HK) and a "buy" rating. With its strong free cash flow and low capital expenditure requirements, the group will increase its mid-term dividend payout ratio to 26%, and expects the dividend payout ratio to exceed 50% by 2025. Due to its robust balance sheet and stable profit margin, dividends will continue to be the core of its investment logic. In a low-growth environment, the continuously increasing dividend payout ratio not only provides downside protection, but also helps support valuation.