Daiwa downgraded the target price of CR BEVERAGE to 12.5 yuan, reiterating "Buy."

Daiwa published a research report stating that CR Beverage (02460.HK) recently had a change in its board chairman, with the new chairman Gao Li having previously served as the group's Chief Financial Officer and playing an important role during the company's rapid growth.

Daiwa quoted CR Beverage's management as saying that the company's retail market share for drinking water has stabilized over the past few months, but the firm believes that investors are still waiting for a clear turning point, and the market will focus on the company's sales performance in the second quarter of this year.

The firm has adopted a more conservative forecast for CR Beverage's revenue growth and operating profit margin expansion, thus lowering its earnings per share estimates for the company from 2025 to 2027 by 18% to 25%, and reducing the target price from HKD 15.3 to HKD 12.5, while reiterating a "Buy" rating, believing that the company's channel adjustments this year will yield significant results