



Core Viewpoint - The report from China Merchants Securities International maintains a target price of HKD 33.5 for China Resources Beer (00291) and an "Accumulate" rating, highlighting the company's strong free cash flow and low capital expenditure needs [1] Group 1: Dividend Policy - The company has increased its interim dividend payout ratio to 26% and expects this ratio to exceed 50% by 2025, indicating a strong commitment to returning value to shareholders [1] - The robust balance sheet and stable profit margins suggest that dividends will remain a core part of the investment logic [1] Group 2: Market Performance - In the context of a sluggish growth environment, the rising dividend payout ratio is seen as providing downside protection and supporting valuation [1] - Looking ahead to the second half of the year, sales growth for China Resources Beer in July and August is expected to outpace that of the first half, driven by retail and digital expansion as well as effective customer relationship management [1]