The bank emphasizes that BUD APAC (01876) and CHINA RES BEER are still its favored Chinese beer stocks.
According to Zhitong Finance APP, Citigroup released a Research Report stating that it maintains a "Buy" rating for CHINA RES BEER (00291), lowering the Target Price from HKD 40.07 to HKD 35.6, and reducing core Net income forecasts for this year and next by 14% and 15% respectively, and revenue forecasts by 3% and 4% respectively, to reflect conservative predictions for Baijiu(Chinese Liquor) sales and an expected increase in marketing administrative expenses. It emphasizes that BUD APAC (01876) and CHINA RES BEER are still its favored Chinese beer stocks.
Citigroup pointed out that the Chinese government's consumption promotion policies are expected to have a positive effect on the dining industry in the second to third quarters of this year, reinforcing the firm's more positive outlook on the Consumer Sector. The management of CHINA RES BEER is also optimistic about the prospects for this year, noting that consumer confidence has shown signs of recovery in the first two months, with in-store consumption in Leisure dining venues becoming stable.
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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