Golden Key Financial News | Bocom Intl stated that the dining channel is an important channel for beer sales (over 40%), but overall performance of the dining market has been relatively weak this year. Pressures on the beer consumption environment and unpredictable weather also have a negative impact on the beer market. China Res Beer (00291) outperformed the industry, with the high-end process still ongoing. The management indicated that the company will continue to promote high-end, differentiated, and regional products. At the same time, the company will innovate in new product research and development, consumer channels and scenarios expansion, marketing models, etc.

Due to short-term industry pressures, the bank has lowered its financial estimates and target price, but remains bullish on the company's long-term sustainable development. The target price has been reduced from HK$43.9 to HK$37.29, based on a 19x (one standard deviation lower than the average PE ratio of the past three years) PE ratio in 2025 (previously 22.2x PE ratio for 2024-25 average PE ratio).