[ET Net News Agency, 22 November 2019] Goldman Sachs raised its target price for China
Resources Beer (CRB)(00291) by 7% to HK$48 and maintained its "buy" rating.
The research house lowered its 2019-21 EPS forecasts by 0-3% to factor in slightly lower
ASP growth and volume growth for 2019, due to the slower 3Q trend - however, Goldman still
forecast 5% ASP growth and 2% volume CAGR for 2019-21.
Goldman said ASP hike and cost reduction were the main drivers of EBITDA per ton
expansion in past two years for CRB. Despite a slower 3Q trend, Goldman expects ASP
upgrades to continue driving the margin expansion while Heineken's market share gain in
the premium market will be another focus area for 2020-21. (KL)