Zhi Tong Cai Jing·2026-03-04 01:53Core Viewpoint - Morgan Stanley has raised the target price for China Resources Beer (00291) from HKD 35 to HKD 36, driven by the appreciation of the Renminbi, while maintaining an "Overweight" rating despite some offset from lowered earnings forecasts [1] Group 1: Financial Projections - The firm maintains its sales and operating profit growth forecasts for the beer business, expecting ongoing efficiency improvements and an increased share of Heineken beer to help offset rising raw material costs [1] - Earnings per share forecasts for China Resources Beer for 2025 to 2027 have been lowered by 2% to 4% due to challenges in the liquor business and the impact of rising aluminum prices on gross margins [1] Group 2: Business Segment Performance - Beer business sales are projected to grow by 2% and 3% in 2025 and 2026, respectively, with operating profit margins expected to expand, leading to recurring operating profit growth of 10% and 7% in those years [1] - The liquor business is anticipated to incur losses in 2025, with losses expected to narrow in 2026 [1] - Overall recurring net profit is expected to grow by 11% in both 2025 and 2026 [1]