CHINA RES BEER(00291) 光大证券·2024-08-22 10:36Investment Rating - The investment rating for China Resources Beer is "Buy" (maintained) [5] Core Views - The company reported a revenue of 23.744 billion RMB for the first half of 2024, a slight decrease of 0.5% year-on-year, while the net profit attributable to shareholders was 4.705 billion RMB, an increase of 1.2% year-on-year [5] - Beer revenue reached 22.566 billion RMB, down 1.4% year-on-year, with beer sales volume at 6.348 million kiloliters, a decline of 3.4% year-on-year, primarily due to macroeconomic fluctuations and adverse weather in certain regions [6] - The average selling price of beer increased by 2.0% year-on-year to 3,554 RMB per kiloliter, driven by continuous product structure upgrades [6] - The gross profit margin improved to 46.9%, up 0.9 percentage points year-on-year, with the beer business gross margin at 45.8%, an increase of 0.6 percentage points [7] - The company expects better sales growth in the second half of the year due to a lower comparative base, despite a challenging beer consumption environment [8] Summary by Sections Financial Performance - For the first half of 2024, the company achieved a revenue of 23.744 billion RMB, with a net profit of 4.705 billion RMB [5] - The beer segment's revenue was 22.566 billion RMB, with a sales volume of 6.348 million kiloliters [6] - The company’s EBIT margin improved to 26.8%, up 0.7 percentage points year-on-year [7] Product and Market Strategy - The company is focusing on high-end and above products, which saw a sales volume growth of over 10% year-on-year [6] - The Heineken brand experienced a sales increase of over 20% in the first half of 2024, supported by national expansion efforts [8] - The white wine business achieved over 20% revenue growth, with high-end products contributing significantly [8] Profitability and Cost Management - The company’s gross profit margin improved due to a decrease in packaging costs and product upgrades [7] - The administrative expense ratio decreased by 0.3 percentage points year-on-year, reflecting cost control measures [7] - The forecast for net profit for 2024-2026 has been adjusted downwards due to ongoing challenges in beer demand and the white wine sector [8]