DaMao released a research report stating that it has lowered the profit forecast for china res beer (00291) from 2024 to 2026 by 2% to 5%. The bank has raised the target price of Res Beer from HK$32 to HK$34 and rated it as 'shareholding'.

The bank has lowered the group's sales forecast for this year by 3% to reflect weak beer demand and a downward revision of baijiu sales forecasts, with sales in 2025 and 2026 expected to further decline by 6% from a lower base. Due to weak sales in the mid to high-end business, the bank has assumed a decrease of 0.5, 1.1, and 1.3 percentage points in their gross margin for 2024 to 2026, but still expects profit growth. This is expected to be partially offset by anticipated reductions in operating expenses.