[ET Net News Agency, 22 January 2021] Goldman Sachs lifted its target price for China
Resources Beer (CRB) (00291) to HK$75 from HK$66 and maintained its "buy" rating.
The research house revised CRB's 2020-22 EPS estimates by 3-9% to reflect the slower
near-term growth and higher selling expenses related to premium expansion. Recurring
EBITDA is lower as Goldman now factored in inventory impairment, however, the growth rate
remains solid at 21% 2-year CAGR.
Goldman expects the company to deliver stable 2H 2020 sales growth from faster expansion
of the premium segment (first 9-month up 7%), offset by a slow down in 4Q. It looks for an
11% recurring EBIT growth in 2020 but followed by a strong rebound in 2021. Goldman
forecasted continued strong double-digit growth for Heineken and the sub-high end to
outperform this year. (KL)