Sina Finance’s “Wine Price Insider” launches in a big way — real market prices of well-known liquor brands are now at your fingertips

(Source: Caixin)

The firm cut its target P/E multiple from 15x to 14x (based on the estimated P/E for 2027), aligning with the global beer peer level. The target price was lowered from HK$34 to HK$28, while maintaining a “Buy” rating.

On August 20, JPMorgan released a research report saying that China Resources Beer (00291.HK) has an attractive risk-reward profile, as its current trading price implies an estimated P/E ratio of about 10x for 2027 and a dividend yield of 5.5%. The firm cut its target P/E multiple from 15x to 14x (based on the estimated P/E for 2027), aligning with the global beer peer level. The target price was lowered from HK$34 to HK$28, while maintaining a “Buy” rating.

JPMorgan said that China Resources Beer’s first-half revenue rose 1.2% year-on-year on an annual basis, below market expectations of 2.2%. Net profit fell 11% year-on-year, far under the market’s expectation that it would be roughly flat year-on-year. The average selling price of beer increased by only 0.5%, less than the market expectation of 2%. This suggests the group prioritised protecting market share and maintaining the foundation of its mass-market presence, rather than driving up prices by cutting back low-end volumes. JPMorgan noted that the premiumisation trend is still ongoing, with double-digit growth in volumes of high-end and mid-to-high-end beers. However, the pace is slower than expected by the market: high-end beer accounts for 27% of total volume, which is still not enough to fully offset the pressure in the mid- and low-end markets. Incremental growth from new channel partnerships (with the volume share below 1%) contributed to the improvement in consumer insights.