China Resources Beverage Remains Undervalued Amid Sluggish Demand
Dow Jones
Aug 28
0320 GMT - China Resources Beverage's shares remain undervalued, says Morningstar's Chokwai Lee in a note, citing sluggish demand and elevated marketing spending weighing on sentiment. The Chinese bottled-water producer's 1H revenue missed Morningstar's estimate, which the director attributes to the company facing difficulty gaining market share in a weak and crowded market and channel restructuring weighing on near-term sales. The company's likely weaker 2026 revenue base and lower margin estimates lead the director to reduce his 2026-2029 earnings projections by an average of 16%. Morningstar trims its fair-value estimate for China Resources Beverage by 7% to 10.50 Hong Kong dollars. Shares decline 2.2% to HK$7.34.
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