China Resources Beer (0291.HK)

Consumer · HKEX · Hong Kong

HK$23.86+7.87% today

Fundamentals

Market capHK$72.02B

P/E ratio18.5

Dividend yield5.17%

Revenue growth (YoY)-5.7%

Profit margin8.9%

Return on equity8.9%

52-week rangeHK$20.92 to HK$29.40

Valuation and ratings

DCF fair valueHK$13.26

Upside to fair value-44.4%

Analyst target (mean)HK$34.30

Analyst rangeHK$26.00 to HK$48.00

Analysts covering28

Consensus viewstrong buy

Moat score51/100

Overall rating30/100, Reduce

China Resources Beer trades at HK$23.86, which is 44% above the HK$13.26 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.

Our moat model scores it 51 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.

It changes hands at 18.5 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.

About China Resources Beer

China Resources Beer (Holdings) Company Limited, an investment holding company, engages in the manufacture, distribution, and sale of alcoholic beverages in Mainland China. It offers beer and baijiu products under the Guizhou and Jinsha Huisha brands. 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 Wan Chai, Hong Kong. China Resources Beer (Holdings) Company Limited operates as a subsidiary of CRH (Beer) Limited.

Industry: Beverages - BrewersEmployees: 24,099HQ: Hong Kong

0291.HK passes 5 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Dividend powerhouses

Yields above 3%, filtered for the one thing yield screens never check: whether the company can actually afford it.

Low volatility defensives

Companies that move less than the market and pay you to wait. The holdings that let you sleep, and let you hold everything else.

Consumer staples

The companies that sell what people buy regardless of the economy. Dull, and dull is the entire point.

China and Hong Kong

Enormous growth, and a structure in which you may not legally own the company you think you bought. Both are true at once.

Dividend aristocrats

Companies with long, unbroken records of raising their dividend. The record is the point: it is evidence, not a promise.

Common questions

Is China Resources Beer (0291.HK) undervalued?

Against our discounted cash flow estimate of HK$13.26, 0291.HK at HK$23.86 is 44% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.

What is 0291.HK's P/E ratio?

0291.HK trades at 18.5 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.

The full research page for 0291.HK, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.

Open 0291.HK in the app Free guides and screens

Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.