[ET Net News Agency, 27 January 2021] Jefferies Research lifted its target price for
China Resources Beer (CRB) (00291) to HK$80.7 from HK$63 and maintained its "buy" rating.
Although CRB announced lower than expected net profit growth for 2020, the research
house remains positive on its long-term growth with product mix upgrade. In the near term,
Jefferies forecasted 12%/8% sales growth with expanding recurring margin in 2021/22.
CRB targets to achieve Budweiser APAC's (01876) gross margin by 2025, leaving much room
for margin expansion in the next five years. Jefferies forecasted 0.8%/5.6% growth in
sales/recurring EBIT. CRB has announced at least a 50% increase in net profit for 2020;
thus Jefferies estimated RMB2bn net profit, implying RMB42m loss in 2H. (KL)