Lyon: Lowering the target price of China Resources Beer (00291) to HK$31.5 to maintain “outperforming the market” rating

The Zhitong Finance App learned that Lyon released a research report saying that the beer industry is facing challenges this summer. Although China Resources Brewery (00291)'s beer sales growth and product structure upgrade performance are superior to the industry, profits are still being eroded by high aluminum prices. The bank lowered Runbeer's net profit forecast for 2026-28 to reflect weak demand and pressure on raw materials, and lowered the target price from HK$34.6 to HK$31.5, maintaining the “outperforming the market” rating.

The bank expects raw material pressure to continue until the third quarter and ease somewhat in the fourth quarter. The bank said that sales of Runbeer increased 1.2% year on year in the first half of the year, in line with expectations; net profit fell 10.7% year on year because the one-time income from selling land last year raised the base; profit margin was 47.7%, which was lower than expected.