News Alert: CR Beer announced positive profit alert with 110%-124% y-o-y attributable profit growth, in line with our expectation
- CR Beer announced its FY21 profit alert with expected net profit between RMB4.4bn and RMB4.7bn, representing a 110%-124% y-o-y growth, in line with our expectation.
- The expected net profit includes an initial after-tax compensation gain on land disposal amounting to RMB1.3bn, which has been included in our net profit forecast.
- Our current rating is BUY with TP of HK$72.29.
What’s New
- CR Beer announced its preliminary FY21 results with expected net profit up 110%-124% y-o-y to RMB4.4bn-RMB4.7bn, in line with our expectation.
- The net profit growth was mainly attributable to the gain on disposal of land to a 50%-owned joint venture, amounting to HK$1.8bn with tax effect of HK$439m, representing an after-tax gain of RMB1.3bn.
- Increased net profit was also supported by the growth of gross profit, thanks to the increase in average selling price with effective premiumisation strategies.
- CR Beer has also recorded reductions in fixed asset impairment loss and employee compensation & settlement expenses, while increases in marketing expenses and labour costs were recognised.
- We maintain positive outlook for 2022 in view of on-going premiumisation efforts and excellent growth potential.
- Our current rating is BUY with TP of HK$72.29.