China Resources Beer: Navigating Premiumization And Channel Expansion Amid Uncertainty

2025-04-07 07:09:38 ET

Summary

• We are bullish on China Resources Beer due to its premiumization trend and strategic channel expansion amid an uncertain geopolitical environment.
• CRB's premium segment, led by Heineken, shows strong growth, and partnerships with Sam’s Club and Meituan support in-home consumption and higher ASP.
• CRB's valuation at 8.5x EV/EBITDA is attractive compared to peers, with a 23% upside potential based on a 10x target EBITDA multiple.
• Despite macro risks, CRB's consistent dividend payout and strategic initiatives provide certainty, making it a defensive stock worth considering.

We are bullish on China Resources Beer ( OTCPK:CRHKY ) (CRHKF) , or CRB. We believe investors should stay defensive amid an uncertain geopolitical environment following the recent US tariff announcement, which will likely increase uncertainty for Chinese equities....

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