[ET Net News Agency, 21 August 2018] Credit Suisse raised its target price for China
Resources Beer (CRB)(00291) to HK$43.5 from HK$42.5, and maintained its "outperform"
rating.
The research house said CRB reported strong interim results, driven by successful price
increase and good control of operating expenses. It sees CRB's strategy of premiumisation
and operation optimisation has been carried out smoothly and has started to show early
signs of success.
Despite some volume loss in 1H due to strategy shift, CRB has significantly expanded its
margins with better products, and continues to reallocate capacities to make production
more efficient. Credit Suisse lifted its earnings forecasts by 2%, assuming lower expense.
(KL)