Southwest Securities·2024-03-27 16:00Investment Rating - The report maintains a "Buy" rating for China Resources Beer (0291.HK) [1] Core Views - The company achieved a revenue of 38.93 billion yuan in 2023, representing a year-on-year growth of 10.4%, and a net profit attributable to shareholders of 5.15 billion yuan, up 18.6% year-on-year [2] - The beer sales volume reached 11.15 million tons, with a slight increase of 0.5% year-on-year, while the premium segment saw a significant growth of 18.9% [2] - The overall gross margin improved to 41.4%, an increase of 2.9 percentage points year-on-year, driven by cost reductions and a successful shift towards higher-end products [2] - The company plans to continue focusing on its core brands and expects double-digit growth in the premium segment in 2024 [2] Summary by Sections Financial Performance - Revenue for 2023 was 38.93 billion yuan, with a growth rate of 10.4% [3] - Net profit attributable to shareholders was 5.15 billion yuan, with a growth rate of 18.6% [3] - The company’s gross margin for 2023 was 41.4%, up 2.9 percentage points from the previous year [2][3] Sales and Volume - Total beer sales volume was 11.15 million tons, with a year-on-year increase of 0.5% [2] - Premium beer sales volume increased by 18.9%, contributing to a higher overall sales mix [2] Profitability and Margins - The overall net profit margin improved to 13.4%, an increase of 1.1 percentage points year-on-year [2] - The company’s EBIT for 2023 was 7.03 billion yuan, reflecting a growth of 28.7% [2] Future Outlook - EPS forecasts for 2024, 2025, and 2026 are 1.85 yuan, 2.11 yuan, and 2.37 yuan respectively, with corresponding dynamic PE ratios of 19x, 17x, and 15x [2][3] - The company anticipates continued growth in both beer and liquor segments, with a focus on premiumization and brand development [2]