SEHK:291

Stock Analysis Report

China Resources Beer (Holdings)

Executive Summary

China Resources Beer (Holdings) Company Limited, an investment holding company, manufactures, sells, and distributes beer products under the Snow brand.


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

291IndustryMarket
7 Day4.7%5.5%7.4%
30 Day-1.9%-10.4%-11.2%
90 Day-17.9%-22.8%-17.3%
1 Year11.4%11.0%-3.1%-3.7%-19.9%-22.7%
3 Year100.8%97.1%30.5%27.9%-5.3%-14.8%
5 Year402.5%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

NamePositionTenureCompensationOwnership
Xiaohai Hou
CEO & Executive Director3.83yrsCN¥3.85m0.028% CN¥31.8m
Po Sing Lai
CFO, Company Secretary & Executive Director3.67yrsCN¥1.74mno data
Yi Jian
Executive Director1.67yrsCN¥880.00kno data
Tan Tse
General Manager of Group Strategic Planning Investor Relations Departmentno datano datano data
Dayong Cheng
General Manager of Group Legal and Secretarial Departmentno datano datano data
Bruce Wang
Chief Human Resources Officer and Senior Vice President6.17yrsno datano data
Weiyong Wang
Senior Vice President6.25yrsno datano data
Dan Zhu
President & Director of China Resources Petrochems(Group) Ltdno datano datano data
LongShan Zhou
Managing Director of Redland Concrete Limitedno datano datano data
Chunyi Fu
Managing Director of China Resources Light Industries & Textiles (holdings) Co Ltdno datano datano 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

NamePositionTenureCompensationOwnership
Xiaohai Hou
CEO & Executive Director3.83yrsCN¥3.85m0.028% CN¥31.8m
Po Sing Lai
CFO, Company Secretary & Executive Director3.67yrsCN¥1.74mno data
Yi Jian
Executive Director1.67yrsCN¥880.00kno data
Dan Zhu
President & Director of China Resources Petrochems(Group) Ltdno datano datano data
Mo Chi Cheng
Independent Non-Executive Director14.25yrsCN¥260.00kno data
Tai Houang
Independent Non-Executive Director32.17yrsCN¥270.00kno data
Ka-Cheung Li
Independent Non-Executive Director17yrsCN¥270.00k0.0084% CN¥9.4m
Charnwut Chan
Independent Non-Executive Director13.25yrsCN¥260.00kno data
Ni Hium Lai
Non-Executive Director10.67yrsCN¥100.00k0.0046% CN¥5.2m
Kwing Siu
Independent Non-Executive Director13.25yrsCN¥270.00kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CRHK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
291SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
CHKDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
291SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
291SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
CRHK.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 12:37
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.