Asia L/S Equity PM/Macro/Thematic Idea Generation

Rikki Malik

Equity Bottom-Up

China Resources Beer Holdings / Equity Bottom-Up

<ul>
<li>The company's strategy of premiumisation continues to be executed to plan</li>
<li>Despite the derating, investors will wait until seeing concrete signs of a turn in the Chinese consumer</li>
<li>Continues to be a liquid proxy for Chinese consumption with no technology regulation risk</li>
</ul>


The company's strategy of premiumisation continues to be executed to plan
Despite the derating, investors will wait until seeing concrete signs of a turn in the Chinese consumer
Continues to be a liquid proxy for Chinese consumption with no technology regulation risk


China Resources Beer Holdings - Interim Results Show Progress but Macro Headwinds Remain

Investment Research - Asia Consumer Sector, Investory

Devi Subhakesan

Investment Research - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

<ul>
<li>Welcome to Consumer Tales &amp; Trends, your weekly roundup of the latest corporate developments, investment reports and sector events in the consumer industry.</li>
<li>With fewer young people and a growing number of older adults, the target market for alcoholic beverages is shrinking in many markets including China.</li>
<li>Upsides from vertical integration could give <a href="https://www.smartkarma.com/entities/ola-electric-mobility-pvt-ltd" target="_blank" data-smartkarma-citation="entities:40618:1" rel="noopener">Ola Electric (OLAELEC IN)</a> a significant cost advantage over local competitors. Strong pricing power can allow it to decide whether to prioritize growth or margins.</li>
</ul>


Welcome to Consumer Tales &amp; Trends, your weekly roundup of the latest corporate developments, investment reports and sector events in the consumer industry.
With fewer young people and a growing number of older adults, the target market for alcoholic beverages is shrinking in many markets including China.
Upsides from vertical integration could give Ola Electric (OLAELEC IN) a significant cost advantage over local competitors. Strong pricing power can allow it to decide whether to prioritize growth or margins.


Consumer Tales Aug Wk#4: Beer in China, Ola's Path to Profits, Kalyan Jewellers' Quiet Confidence

<ul>
<li>Stock valuations for China's top beer players are near historical lows, but is a recovery on the horizon? Will it ever return to the heady valuations of 2019-2020?</li>
<li>
<a href="https://www.smartkarma.com/entities/china-resources-beer-holdings" target="_blank" data-smartkarma-citation="entities:399:1" rel="noopener">China Resources Beer Holdings (291 HK)</a> and <a href="https://www.smartkarma.com/entities/budweiser-brewing-co-apac-ltd" target="_blank" data-smartkarma-citation="entities:28077:1" rel="noopener">Budweiser Brewing APAC (1876 HK)</a> have reported 1H2024 results showing a decline in sales volumes, attributed to several short term factors.</li>
<li>We highlight long-term factors, including an aging population and shifting consumer habits, that could limit sustained growth in China's alcoholic beverage market.</li>
</ul>


Stock valuations for China's top beer players are near historical lows, but is a recovery on the horizon? Will it ever return to the heady valuations of 2019-2020?

China Resources Beer Holdings (291 HK) and Budweiser Brewing APAC (1876 HK) have reported 1H2024 results showing a decline in sales volumes, attributed to several short term factors.
We highlight long-term factors, including an aging population and shifting consumer habits, that could limit sustained growth in China's alcoholic beverage market.


Beer in China: 1H2024 Low Point—What Lies Ahead?

Analyst

Steve

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chongqing-brewery-co-a" target="_blank" data-smartkarma-citation="entities:8837:1" rel="noopener">Chongqing Brewery Co A (600132 CH)</a> announced a impressive earnings beat last night, with net profit up 24% yoy in 2Q23.  Stock is limit up (10%) today.</li>
<li>The results confirm the premiumization thesis of the China beer sector is in tact. </li>
<li>Buy <a href="https://www.smartkarma.com/entities/china-resources-beer-holdings" target="_blank" data-smartkarma-citation="entities:399:1" rel="noopener">China Resources Beer Holdings (291 HK)</a>; take advantage of the overall H-share market weakness and unfounded fear on deflation.    </li>
</ul>



Chongqing Brewery Co A (600132 CH) announced a impressive earnings beat last night, with net profit up 24% yoy in 2Q23.  Stock is limit up (10%) today.
The results confirm the premiumization thesis of the China beer sector is in tact. 
Buy China Resources Beer Holdings (291 HK); take advantage of the overall H-share market weakness and unfounded fear on deflation.    


Chongqing Brewery (600132 CH) Limit Up 10% Today After Results Beat; Buy China Resources Beer

<ul>
<li>Full -year 2023 results  and 2024 forecasts indicate business going to plan</li>
<li>The Baijiu division, key to a rerating, grew sales 50% y/y in the first two months of the year</li>
<li>The beer division continues to reap the benefits of its premiumisation strategy</li>
</ul>


Full -year 2023 results  and 2024 forecasts indicate business going to plan
The Baijiu division, key to a rerating, grew sales 50% y/y in the first two months of the year
The beer division continues to reap the benefits of its premiumisation strategy


China Resources Beer Holdings (291.HK) Starts 2024 with a Bang!

Hong Kong

China Resources Beer (Holdings) Company Limited is an alcoholic beverage retailer.

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China Resources Beer Holdings (291 HK)

China Resources Beer Holdings - Interim Results Show Progress but Macro Headwinds Remain

With the stock down 9% today and at a good technical support level, it is worth revisiting this large-cap, index Chinese consumption play. A...

Rikki Malik

Consumer Tales Aug Wk#4: Beer in China, Ola's Path to Profits, Kalyan Jewellers' Quiet Confidence

Weekly update includes note on Beer in China, Ola Electric's path to profitability and Kalyan Jewellers decision to buy stake from Warburg Pincus

Devi Subhakesan

Beer in China: 1H2024 Low Point—What Lies Ahead?

Longer term outlook for volume growth is rather bleak for beer in China. Hence, it is unlikely that China beer companies return to the heady sector...

Devi Subhakesan

Chongqing Brewery (600132 CH) Limit Up 10% Today After Results Beat; Buy China Resources Beer

Chongqing Brewery Co A (600132 CH) announced a big earnings beat last night, with net profit up 24% yoy in 2Q23. Stock is limit up (10%) today. ...

Steve

China Resources Beer Holdings (291.HK) Starts 2024 with a Bang!

The Baijiu Division, key for a rerating is performing well in the first 2 months of the year with sales rising 50% y/y, while the core beer...

Rikki Malik

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