Ge Long Hui·2026-03-02 07:38Core Viewpoint - Morgan Stanley has lowered its earnings per share forecast for China Resources Beer for 2025 to 2027 by 2% to 4% due to challenges in the liquor business and the impact of rising aluminum prices on gross margins [1] Group 1: Beer Business - The firm maintains its sales and operating profit growth forecasts for the beer business, expecting sales growth of 2% in 2025 and 3% in 2026 [1] - Operating profit margin expansion is anticipated to drive recurring operating profit growth of 10% in 2025 and 7% in 2026 [1] - Continuous efficiency improvements and an increased share of Heineken beer are expected to help offset the impact of rising raw material costs [1] Group 2: Liquor Business - The liquor business is projected to incur losses in 2025, with losses expected to narrow in 2026 [1] Group 3: Price Target and Rating - The target price for China Resources Beer has been raised from HKD 35 to HKD 36, partially offset by the downward revision in earnings forecasts [1] - The rating remains "Overweight" [1]