[ET Net News Agency, 23 March 2020] Morgan Stanley lowered its target price for China
Resources Beer (CRB)(00291) to HK$42 from HK$45 and maintained its "overweight" rating.
Due to COVID-19 impact, CRB estimated its sales and EBIT will drop 26% and 42% in the
first two months of 2020, amid a 40% decline in beer industry overall volume. With all of
its factories resuming production by 21 March, management expects a normalized production
level by end of April/May.
The current inventory level is higher, but it could take a half to one month to
normalize. Management believes COVID-19 will not alter the industry's premiumization trend
despite a temporary impact on high-end consumption due to headwinds to the on-trade during
the virus outbreak.
Morgan cut its 2020 and 2021 recurring operating profit estimates by 12% and 9% to
factor in COVID-19 impact. (KL)
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00291 CRES BEER-500
Nominal 
32.300 -0.550 (-1.674%) Research Report
23/03/2020 18:01
{I-bank focus}Morgan Stanley lowers CR Beer (00291) to HK$42
| Remark: | Real time quote last updated: 19/04/2024 18:00 |
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