BofA Securities has issued a research report lowering its earnings per share forecasts for China Res Beer (00291) for 2026 and 2027 by 15% and 14% respectively, to reflect expected soft third-quarter performance, China's macroeconomic uncertainty, and persistent cost pressures. The brokerage also cut its price target from HK$26.6 to HK$29.1 and reiterated its "Buy" rating.

The bank expects China Res Beer's core net profit in 2026 to decline by a double-digit percentage year-on-year to approximately RMB 4.7 billion, with beer revenue posting a low single-digit decline and baijiu revenue falling more than 20%. Gross margin is projected to be eroded by more than 1 percentage point, mainly due to rising aluminum costs and lower production volumes weighing on capacity utilization.