J.P. Morgan published a research report stating that CHINA RES BEER (00291) recorded sales and profit growth of 0.8% and 23% year-on-year respectively in the first half, with adjusted EBIT rising 11.3% year-on-year, slightly exceeding market expectations. The positive surprise came from the beer business EBITDA margin expansion of 3.4 percentage points. Over the next five years, CHINA RES BEER will continue to focus on beer premiumization and margin improvement. The firm raised its target price from HK$40 to HK$41 while maintaining its "Overweight" rating.

The firm expects the group's sales, adjusted EBIT, and net profit to increase by 1.1%, 11%, and 26% respectively this year, with compound annual growth rates of 3.5%, 12%, and 6% respectively from 2025 to 2027. The firm anticipates the group's dividend per share to rise 26% year-on-year to RMB 0.96 this year, implying a yield of 3.7%. The group may gradually increase its payout ratio to 60% in the future.