External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

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<ul><li>CR beer’s 13.6% 1H revenue growth comprised 9.0% beer revenue growth and RMB977mn baijiu revenue, which was reported and consolidated for the first time.</li><li>While the former seems to be slightly below our estimate of a low-teen growth, beer gross margin of 45.2% was 1.5pp ahead of us, thanks to raw material cost savings, and a better-than-expected sales mix.</li><li>Of note, Heineken recorded 60% YoY shipment growth, and now sub-premium+ (Super-x and above) contributed to 22% of total shipment over the reporting period. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CR beer’s 13.6% 1H revenue growth comprised 9.0% beer revenue growth and RMB977mn baijiu revenue, which was reported and consolidated for the first time.While the former seems to be slightly below our estimate of a low-teen growth, beer gross margin of 45.2% was 1.5pp ahead of us, thanks to raw material cost savings, and a better-than-expected sales mix.Of note, Heineken recorded 60% YoY shipment growth, and now sub-premium+ (Super-x and above) contributed to 22% of total shipment over the reporting period. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CR Beer (291 HK) – 1H rev/EBIT +13%/26%; Heineken grew 60%

<ul><li>2Q preview. 1H23 operational performance came in largely in line with midsingle-digit volume growth, although that of 1Q was slightly stronger than 2Q due to Chinese New Year impact.</li><li>By segment, sub-premium+ delivered 20% growth, with Heineken achieving 30%+.</li><li>Meanwhile, SuperX and others saw teen growth. By channel, restaurant demand has fully recovered to prepandemic levels, while that from night life has been ramping up. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

2Q preview. 1H23 operational performance came in largely in line with midsingle-digit volume growth, although that of 1Q was slightly stronger than 2Q due to Chinese New Year impact.By segment, sub-premium+ delivered 20% growth, with Heineken achieving 30%+.Meanwhile, SuperX and others saw teen growth. By channel, restaurant demand has fully recovered to prepandemic levels, while that from night life has been ramping up. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CR Beer (291 HK) – Expecting a Solid 1H23

<ul><li>CR Beer’s share price corrected by c.10% on softer-than-expected April sales.</li><li>However, our channel check suggests steadfast 4M sales growth that compares to that of 3M.</li><li>Meanwhile, 20%/21% sector beer production growth in March/April could altogether reinforce a potentially strong summer sales that market has previously challenged with doubts. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CR Beer’s share price corrected by c.10% on softer-than-expected April sales.However, our channel check suggests steadfast 4M sales growth that compares to that of 3M.Meanwhile, 20%/21% sector beer production growth in March/April could altogether reinforce a potentially strong summer sales that market has previously challenged with doubts. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CR Beer (291 HK) – A Crowded Trade but Worthy of a Revisit for a Potentially Strong Summer Sales

<ul><li>2023 outlook. Management remains confident in 2023.</li><li>We are unaware of a major revision to previous guides, which targets HSD growth in revenue, contributed by 1) LSD volume growth driven by ~20% sub-premium/ premium SKUs (~30% from Heineken) that accelerate from mid-teen growth in 2022, 2) MSD to HSD ASP growth thanks to regional price hike and product mix upgrade.</li><li>Meanwhile, input cost pressure is easing (~RMB500mn increase vs RMB1bn+ in 2022) and should fuel GPM to expand further from 2022.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

2023 outlook. Management remains confident in 2023.We are unaware of a major revision to previous guides, which targets HSD growth in revenue, contributed by 1) LSD volume growth driven by ~20% sub-premium/ premium SKUs (~30% from Heineken) that accelerate from mid-teen growth in 2022, 2) MSD to HSD ASP growth thanks to regional price hike and product mix upgrade.Meanwhile, input cost pressure is easing (~RMB500mn increase vs RMB1bn+ in 2022) and should fuel GPM to expand further from 2022.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CR Beer (291 HK) – An in-line 2H22; our top pick among China F&B names

<ul><li>A lackluster 4Q22. Subsequent to a strong 3Q, 4Q volume has been unexciting partly due to slow season and lockdowns.</li><li>Compared to a 0.7% YoY decline in 1H, management expects FY volume to hover at break-even.</li><li>Premium/ sub-premium growth continued to outperform group average at ~10% within 2H (and hence FY) thanks to Heineken. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

A lackluster 4Q22. Subsequent to a strong 3Q, 4Q volume has been unexciting partly due to slow season and lockdowns.Compared to a 0.7% YoY decline in 1H, management expects FY volume to hover at break-even.Premium/ sub-premium growth continued to outperform group average at ~10% within 2H (and hence FY) thanks to Heineken. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CR Beer (291 HK) – Another Positive Year for 2023

Hong Kong

China Resources Beer (Holdings) Co. Ltd. manufactures, distributes, and sells alcoholic beverages, primarily beer, in Mainland China. Its product portfolio includes popular brands like Snow Beer, Heineken, Lao Xue, Amstel, and baijiu products under the Guizhou and Jinsha Huisha brands. The company is headquartered in Wan Chai, Hong Kong, and was founded in 1992.

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China Resources Beer (291 HK)

CR Beer (291 HK) – 1H rev/EBIT +13%/26%; Heineken grew 60%

CR beer’s 13.6% 1H revenue growth comprised 9.0% beer revenue growth and RMB977mn baijiu revenue, which was reported and consolidated for the first...

CMB International

CR Beer (291 HK) – Expecting a Solid 1H23

1H23 operational performance came in largely in line with midsingle-digit volume growth, although that of 1Q was slightly stronger than 2Q due to...

CMB International

CR Beer (291 HK) – A Crowded Trade but Worthy of a Revisit for a Potentially Strong Summer Sales

CR Beer’s share price corrected by c.10% on softer-than-expected April sales. However, our channel check suggests steadfast 4M sales growth that...

CMB International

CR Beer (291 HK) – An in-line 2H22; our top pick among China F&B names

2023 outlook. Management remains confident in 2023. We are unaware of a major revision to previous guides, which targets HSD growth in revenue

CMB International

CR Beer (291 HK) – Another Positive Year for 2023

ASP-wise, management expects a FY MSD increase YoY and this came in consistent to our expectation. The growth should also lead to a stable GPM for...

CMB International

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