[ET Net News Agency, 7 August 2020] Jefferies Research raised its target price for
China Resources Beer (CRB)(00291) to HK$63 from HK$44.6 and maintained its "buy" rating.
The research house said the target price hike factored in better-than-expected volume
recovery and mix upgrade. In 1H, Jefferies forecast CRB to report a 6% sales decline and
1.4% recurring EBIT growth. It expects the recovery to continue in 2H and forecast
3.1%/3.5% sales/recurring EBIT increases in 2H.
Jefferies raised its recurring net profit forecast for 2020 by 42% to factor in
better-than-expected volume recovery and mix upgrade. It forecast 5.9%/17.1%
sales/recurring EBIT CAGRs in 2020-22. (KL)