



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 the payout 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 rationale [1] Group 2: Sales Performance - In 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 [1] - Management anticipates that performance in the second half will improve due to retail and digital expansion, as well as enhanced customer relationship management [1]