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

Rikki Malik

Equity Bottom-Up

China Resources Beer Holdings / Equity Bottom-Up

<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!

Analyst

Steve Zhou, CFA

<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>A liquid proxy for China's recovering consumption (with no technology regulation risk)</li>
<li>A quality red chip company at a very reasonable valuation</li>
<li>Growing sales and margins as its premiumisation strategy is executed</li>
</ul>


A liquid proxy for China's recovering consumption (with no technology regulation risk)
A quality red chip company at a very reasonable valuation
Growing sales and margins as its premiumisation strategy is executed


Cheers! Raise a Glass to China Resources Beer (0291.HK)

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of July 19th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for ICBC (1398 HK), China Hongqiao (1378 HK).</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of July 19th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for ICBC (1398 HK), China Hongqiao (1378 HK).


Hong Kong Connect Flows (Jul 19th): ICBC, China Hongqiao

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

<ul>
<li>Giant Biogene was listed in Hong Kong IPO in 2022. It has done well since and is now trading 45% above its IPO price, but its still cheap.</li>
<li>GB is a leader in the bioactive ingredient-based professional skin treatment product industry in China.</li>
<li>In this note, we will talk about the company’s past performance and future prospects.</li>
</ul>


Giant Biogene was listed in Hong Kong IPO in 2022. It has done well since and is now trading 45% above its IPO price, but its still cheap.
GB is a leader in the bioactive ingredient-based professional skin treatment product industry in China.
In this note, we will talk about the company’s past performance and future prospects.


2024 High Conviction - Giant Biogene - Growth Rate Keeps Moving Higher

Hong Kong

Tibet Water Resources Ltd. produces branded premium bottled mineral water. The Company is focused on institutional sales such as rail transport operators, commercial banks, airlines, government organizations, and other major corporations in China.

WH Group Limited operates as a holdings company. The Company, through its subsidiaries, provides meat processing services, supplies chilled meat, meat products, and other related products.

New Silkroad Culturaltainment Limited is an investment holding company which focuses on investing in, and consolidating, wine and baijiu companies.

China Foods Limited, through its subsidiaries, operates food processing businesses.  The Company processes and refines edible oil and fats, produces confectionery products, wine and beverage as well as flour including wheat and other grain products.  In addition, China Foods Limited trades food products.

Vitasoy International Holdings Limited, through its subsidiaries, manufactures and distributes food and beverages.

Nissin Foods Co., Ltd. operates as an instant food manufacturing company. The Company produces fried, cup, and buck wheat noodles. Nissin Foods markets its products worldwide.

San Miguel Brewery Hong Kong Limited and its subsidiaries manufacture and distribute bottled, canned, and draught beer. The Company sells its products under the San Miguel, Kirin, Lowenbrau, and Guang's brand names.

Lam Soon (Hong Kong) Limited, through its subsidiaries, manufactures and distributes a range of food products, including flour, edible oils and vegetable fats. The Company also manufactures and distributes household cleaning products, including dishwashing detergent, laundry powder, fabric softener, and floor cleanser.

Vinda International Holdings Limited manufactures tissue paper products in China.

Sun Art Retail Group Ltd. operates hypermarkets.  The Company retails food and offers amenities such as restaurants, automated teller machines, pharmacies and dry cleaners.

Tsingtao Brewery Company Limited produces and distributes beer products.  The Company markets its products throughout China and around the world under the Tsingtao Beer brand name.

Thai Beverage Public Company Limited produces a wide range of branded beer and spirits in Thailand.

United Spirits Ltd. manufactures and distributes alcoholic beverages. The Company provides a variety of alcohols and spirits, including whiskey, brandy, and rum. United Spirits also manufactures indian-made foreign liquor brands. United Spirits serves customers worldwide.

Molson Coors Brewing Company operates as a brewing company. The Company brews and produces beer. Molson Coors Brewing serves customers worldwide.

Suntory Beverage & Food Ltd manufacture and sells beverages and food products worldwide. The company is a part of Suntory Holdings ltd.

Coca-Cola Bottling Company Consolidated operates as a holding company. The Company, through its subsidiaries, produces, markets, and distributes nonalcoholic beverages such as energy drinks, bottled water, tea, ready-to-drink coffee, enhanced water, juices, and sports drinks.

Coca Cola Bottling Co. Consolidated (COKE US)

Kirin Holdings Company, Limited produces beer, soft drinks, food products, whisky, and pharmaceuticals.  The Company sells its products in Japan and overseas.

Coca-Cola HBC AG is one of the bottlers in the Coca-Cola system, operating plants in Europe, Africa, and Asia. The Company produces, sells, and distributes a wide range of non-alcoholic beverages, including sparkling, juice, water, sport, energy, tea, and coffee.

Jiangsu King's Luck Brewery JSC Ltd. operates as a wine company. The Company produces and distributes wine, liquor, and other related products.

Jiangsu King's Luck Brewery JS (603369 CH)

Molson Coors Canada Inc. is the principal operating unit of Molson Coors Brewing Company's business operations in Canada.

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

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China Resources Beer Holdings (291 HK)