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291

China Resources Beer (Holdings)SEHK:291 Stock Report

Market Cap

HK$191.9b

7D

3.1%

1Y

27.5%

Updated

17 Oct, 2021

Data

Company Financials +
291 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance4/6
Financial Health5/6
Dividends0/6

291 Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for China Resources Beer (Holdings)
Historical stock prices
Current Share PriceHK$59.15
52 Week HighHK$45.35
52 Week LowHK$78.60
Beta0.70
1 Month Change1.20%
3 Month Change-12.37%
1 Year Change27.48%
3 Year Change110.87%
5 Year Change248.35%
Change since IPO5,043.48%

Recent News & Updates

Sep 18
China Resources Beer (Holdings) (HKG:291) Shareholders Will Want The ROCE Trajectory To Continue

China Resources Beer (Holdings) (HKG:291) Shareholders Will Want The ROCE Trajectory To Continue

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Jul 31
Is China Resources Beer (Holdings) Company Limited (HKG:291) Expensive For A Reason? A Look At Its Intrinsic Value

Is China Resources Beer (Holdings) Company Limited (HKG:291) Expensive For A Reason? A Look At Its Intrinsic Value

How far off is China Resources Beer (Holdings) Company Limited ( HKG:291 ) from its intrinsic value? Using the most...

Shareholder Returns

291HK BeverageHK Market
7D3.1%-0.5%1.1%
1Y27.5%0.3%5.3%

Return vs Industry: 291 exceeded the Hong Kong Beverage industry which returned 0.3% over the past year.

Return vs Market: 291 exceeded the Hong Kong Market which returned 5.3% over the past year.

Price Volatility

Is 291's price volatile compared to industry and market?
291 volatility
291 Beta0.70
Industry Beta0.82
Market Beta1

Stable Share Price: 291 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 291's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a28,000Xiaohai Houhttps://www.crbeer.com.hk

China Resources Beer (Holdings) Company Limited, an investment holding company, manufactures, distributes, and sells beer products under the Snow and Heineken brands. As of December 31, 2020, it operated 70 breweries in 25 provinces, municipalities, and autonomous regions in Mainland China. The company was formerly known as China Resources Enterprise, Limited and changed its name to China Resources Beer (Holdings) Company Limited in October 2015.

China Resources Beer (Holdings) Fundamentals Summary

How do China Resources Beer (Holdings)'s earnings and revenue compare to its market cap?
291 fundamental statistics
Market CapCN¥158.74b
Earnings (TTM)CN¥4.31b
Revenue (TTM)CN¥33.67b

36.9x

P/E Ratio

4.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
291 income statement (TTM)
RevenueCN¥33.67b
Cost of RevenueCN¥20.32b
Gross ProfitCN¥13.35b
ExpensesCN¥9.04b
EarningsCN¥4.31b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.33
Gross Margin39.64%
Net Profit Margin12.79%
Debt/Equity Ratio0%

How did 291 perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

30%

Payout Ratio

Valuation

Is China Resources Beer (Holdings) undervalued compared to its fair value and its price relative to the market?

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 291 (HK$59.15) is trading below our estimate of fair value (HK$77.9)

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 (36.9x) compared to the Hong Kong Beverage industry average (25.5x).

PE vs Market: 291 is poor value based on its PE Ratio (36.9x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: 291 is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: 291 is overvalued based on its PB Ratio (6.3x) compared to the HK Beverage industry average (0.9x).


Future Growth

How is China Resources Beer (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 291's forecast earnings growth (11.9% per year) is above the savings rate (1.5%).

Earnings vs Market: 291's earnings (11.9% per year) are forecast to grow slower than the Hong Kong market (17.4% per year).

High Growth Earnings: 291's earnings are forecast to grow, but not significantly.

Revenue vs Market: 291's revenue (7.7% per year) is forecast to grow slower than the Hong Kong market (12.5% per year).

High Growth Revenue: 291's revenue (7.7% 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 (19.8%).


Past Performance

How has China Resources Beer (Holdings) performed over the past 5 years?

26.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 291 has a large one-off gain of CN¥1.2B impacting its June 30 2021 financial results.

Growing Profit Margin: 291's current net profit margins (12.8%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: 291's earnings have grown significantly by 26.6% per year over the past 5 years.

Accelerating Growth: 291's earnings growth over the past year (183.3%) exceeds its 5-year average (26.6% per year).

Earnings vs Industry: 291 earnings growth over the past year (183.3%) exceeded the Beverage industry 49.8%.


Return on Equity

High ROE: 291's Return on Equity (17.1%) is considered low.


Financial Health

How is China Resources Beer (Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: 291's short term assets (CN¥19.0B) do not cover its short term liabilities (CN¥21.9B).

Long Term Liabilities: 291's short term assets (CN¥19.0B) exceed its long term liabilities (CN¥5.8B).


Debt to Equity History and Analysis

Debt Level: 291 is debt free.

Reducing Debt: 291 has no debt compared to 5 years ago when its debt to equity ratio was 22.3%.

Debt Coverage: 291 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 291 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is China Resources Beer (Holdings) current dividend yield, its reliability and sustainability?

1.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 291's dividend (1.08%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 291's dividend (1.08%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.78%).


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?

7.8yrs

Average management tenure


CEO

Xiaohai Hou (52 yo)

5.5yrs

Tenure

CN¥8,470,000

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 ($USD1.32M) is about average for companies of similar size in the Hong Kong market ($USD1.06M).

Compensation vs Earnings: Xiaohai's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: 291's management team is seasoned and experienced (7.8 years average tenure).


Board Members

Experienced Board: 291's board of directors are seasoned and experienced ( 12.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 291 insiders have only sold shares 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 employee growth, exchange listings and data sources


Key Information

  • Name: China Resources Beer (Holdings) Company Limited
  • Ticker: 291
  • Exchange: SEHK
  • Founded: NaN
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$191.883b
  • Shares outstanding: 3.24b
  • Website: https://www.crbeer.com.hk

Number of Employees


Location

  • China Resources Beer (Holdings) Company Limited
  • China Resources Building
  • Room 2301 & 2310
  • Wan Chai
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 10:06
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.