Remaining positive on premium beer growth
? CRB announced that sales grew by 6% yoy to Rmb33.4bn in FY21 with net profit up by
119% yoy to Rmb4.6bn. Excluding a gain from a land transfer, core earnings rose by
35% yoy to Rmb3.6bn, largely in line with our expectation.
? Despite the current omicron w ave in China, management maintains a positive view on
premiumization and is confident in offsetting raw material cost pressure through a mix
upgrade and selling price increase in FY22F.
? Management expects premium and above products to maintain strong growth
momentum and to achieve at least 25% yoy volume growth in FY22F.
? Reiterate Add with a new DCF- based TP of HK$72.