China Resources Beer (Holdings)
Market Cap
HK$112.4b
Last Updated
2020/03/31 12:37 UTC
Data Sources
Company Financials +
Executive Summary
China Resources Beer (Holdings) Company Limited, an investment holding company, manufactures, sells, and distributes beer products under the Snow brand.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with proven track record.
Share Price & News
How has China Resources Beer (Holdings)'s share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 291 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
4.7%
291
5.5%
HK Beverage
7.4%
HK Market
1 Year Return
11.0%
291
-3.7%
HK Beverage
-22.7%
HK Market
Return vs Industry: 291 exceeded the Hong Kong Beverage industry which returned -3.7% over the past year.
Return vs Market: 291 exceeded the Hong Kong Market which returned -22.7% over the past year.
Shareholder returns
| 291 | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.7% | 5.5% | 7.4% |
| 30 Day | -1.9% | -10.4% | -11.2% |
| 90 Day | -17.9% | -22.8% | -17.3% |
| 1 Year | 11.4%11.0% | -3.1%-3.7% | -19.9%-22.7% |
| 3 Year | 100.8%97.1% | 30.5%27.9% | -5.3%-14.8% |
| 5 Year | 402.5%132.9% | -27.2%-35.3% | -8.7%-23.4% |
Price Volatility Vs. Market
How volatile is China Resources Beer (Holdings)'s share price compared to the market and industry in the last 5 years?
Simply Wall St News
Valuation
Is China Resources Beer (Holdings) undervalued compared to its fair value and its price relative to the market?
41.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 291 (HK$35.4) is trading below our estimate of fair value (HK$59.97)
Significantly Below Fair Value: 291 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 291 is poor value based on its PE Ratio (80.1x) compared to the Beverage industry average (24.2x).
PE vs Market: 291 is poor value based on its PE Ratio (80.1x) compared to the Hong Kong market (8.9x).
Price to Earnings Growth Ratio
PEG Ratio: 291 is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: 291 is overvalued based on its PB Ratio (5.3x) compared to the HK Beverage industry average (0.6x).
Next Steps
Future Growth
How is China Resources Beer (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
36.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 291's forecast earnings growth (36.7% per year) is above the savings rate (1.6%).
Earnings vs Market: 291's earnings (36.7% per year) are forecast to grow faster than the Hong Kong market (12.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 291's revenue (5.5% per year) is forecast to grow slower than the Hong Kong market (10% per year).
High Growth Revenue: 291's revenue (5.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 291's Return on Equity is forecast to be low in 3 years time (17.6%).
Next Steps
Past Performance
How has China Resources Beer (Holdings) performed over the past 5 years?
3.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 291 has a large one-off loss of CN¥1.7B impacting its December 31 2019 financial results.
Growing Profit Margin: 291's current net profit margins (4%) are higher than last year (3.1%).
Past Earnings Growth Analysis
Earnings Trend: 291's earnings have grown by 3.8% per year over the past 5 years.
Accelerating Growth: 291's earnings growth over the past year (34.3%) exceeds its 5-year average (3.8% per year).
Earnings vs Industry: 291 earnings growth over the past year (34.3%) exceeded the Beverage industry -6.3%.
Return on Equity
High ROE: 291's Return on Equity (6.6%) is considered low.
Next Steps
Financial Health
How is China Resources Beer (Holdings)'s financial position?
Financial Position Analysis
Short Term Liabilities: 291's short term assets (CN¥9.8B) do not cover its short term liabilities (CN¥19.9B).
Long Term Liabilities: 291's short term assets (CN¥9.8B) exceed its long term liabilities (CN¥2.0B).
Debt to Equity History and Analysis
Debt Level: 291's debt to equity ratio (2.6%) is considered satisfactory.
Reducing Debt: 291's debt to equity ratio has reduced from 41.2% to 2.6% over the past 5 years.
Debt Coverage: 291's debt is well covered by operating cash flow (902.3%).
Interest Coverage: 291 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: 291 has a high level of physical assets or inventory.
Debt Coverage by Assets: 291's debt is covered by short term assets (assets are 19.1x debt).
Next Steps
Dividend
What is China Resources Beer (Holdings)'s current dividend yield, its reliability and sustainability?
0.51%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 291's dividend (0.51%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.63%).
High Dividend: 291's dividend (0.51%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.28%).
Stability and Growth of Payments
Stable Dividend: 291 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.
Growing Dividend: 291 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: 291 is not paying a notable dividend for the Hong Kong market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 291's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.2yrs
Average management tenure
CEO
Xiaohai Hou (50yo)
3.83s
Tenure
CN¥3,850,000
Compensation
Mr. Hou Xiaohai has been Chief Executive Officer and Executive Director of China Resources Beer (Holdings) Company Limited since April 15, 2016. Mr. Hou was appointed as General Manager of China Resources ...
CEO Compensation Analysis
Compensation vs Market: Xiaohai's total compensation ($USD542.35K) is below average for companies of similar size in the Hong Kong market ($USD1.10M).
Compensation vs Earnings: Xiaohai's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 3.83yrs | CN¥3.85m | 0.028% CN¥31.8m | |
| CFO, Company Secretary & Executive Director | 3.67yrs | CN¥1.74m | no data | |
| Executive Director | 1.67yrs | CN¥880.00k | no data | |
| General Manager of Group Strategic Planning Investor Relations Department | no data | no data | no data | |
| General Manager of Group Legal and Secretarial Department | no data | no data | no data | |
| Chief Human Resources Officer and Senior Vice President | 6.17yrs | no data | no data | |
| Senior Vice President | 6.25yrs | no data | no data | |
| President & Director of China Resources Petrochems(Group) Ltd | no data | no data | no data | |
| Managing Director of Redland Concrete Limited | no data | no data | no data | |
| Managing Director of China Resources Light Industries & Textiles (holdings) Co Ltd | no data | no data | no data |
6.2yrs
Average Tenure
53.5yo
Average Age
Experienced Management: 291's management team is seasoned and experienced (6.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 3.83yrs | CN¥3.85m | 0.028% CN¥31.8m | |
| CFO, Company Secretary & Executive Director | 3.67yrs | CN¥1.74m | no data | |
| Executive Director | 1.67yrs | CN¥880.00k | no data | |
| President & Director of China Resources Petrochems(Group) Ltd | no data | no data | no data | |
| Independent Non-Executive Director | 14.25yrs | CN¥260.00k | no data | |
| Independent Non-Executive Director | 32.17yrs | CN¥270.00k | no data | |
| Independent Non-Executive Director | 17yrs | CN¥270.00k | 0.0084% CN¥9.4m | |
| Independent Non-Executive Director | 13.25yrs | CN¥260.00k | no data | |
| Non-Executive Director | 10.67yrs | CN¥100.00k | 0.0046% CN¥5.2m | |
| Independent Non-Executive Director | 13.25yrs | CN¥270.00k | no data |
13.3yrs
Average Tenure
57yo
Average Age
Experienced Board: 291's board of directors are seasoned and experienced ( 13.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
China Resources Beer (Holdings) Company Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: China Resources Beer (Holdings) Company Limited
- Ticker: 291
- Exchange: SEHK
- Founded:
- Industry: Brewers
- Sector: Food, Beverage & Tobacco
- Market Cap: HK$112.405b
- Shares outstanding: 3.24b
- Website: https://www.crbeer.com.hk
Number of Employees
Location
- China Resources Beer (Holdings) Company Limited
- China Resources Building
- 39th Floor
- Wanchai
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CRHK.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| 291 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jan 1992 |
| CHK | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| 291 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jan 1992 |
| 291 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jan 1992 |
| CRHK.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Jan 1998 |
Biography
China Resources Beer (Holdings) Company Limited, an investment holding company, manufactures, sells, and distributes beer products under the Snow brand. As of December 31, 2018, the company operated 78 breweries in 24 provinces, municipalities, and autonomous regions in Mainland China. It is also involved in financing business. The company was formerly known as China Resources Enterprise, Limited and changed its name to China Resources Beer (Holdings) Company Limited in October 2015. The company is based in Wanchai, Hong Kong and considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. China Resources Beer (Holdings) Company Limited is a subsidiary of China Resources (Holdings) Company Limited.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 12:37 |
| End of Day Share Price | 2020/03/31 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.