---
title: "In \"The Big Banks,\" Citigroup lowered the target price for CR BEVERAGE to 10.7 yuan, as high PET prices may affect profit margins"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/280975144.md"
description: "The Lyon Research Report pointed out that CR BEVERAGE's sales fell by 18.6% to 11 billion yuan last year, and net profit decreased by 39.8% to 985 million yuan, in line with the profit warning. Management expects sales to grow steadily this year, but high PET prices may impact profit margins. The bank has lowered its earnings forecasts for 2026 and 2027 by 19% and 22%, respectively, and reduced the target price from HKD 13.1 to HKD 10.7, maintaining an \"outperform\" rating"
datetime: "2026-03-30T07:44:06.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/280975144.md)
  - [en](https://longbridge.com/en/news/280975144.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/280975144.md)
---

# In "The Big Banks," Citigroup lowered the target price for CR BEVERAGE to 10.7 yuan, as high PET prices may affect profit margins

Citi published a research report indicating that CR BEVERAGE (02460.HK) saw a year-on-year sales decline of 18.6% to RMB 11.002 billion last year, which was lower than the bank's and market expectations. Net profit fell 39.8% year-on-year to RMB 985 million, in line with the profit warning guidance. The payout ratio is 90%, reflecting a dividend yield of 4.8%.

Management stated that sales progress from January to February this year has been positive, with the goal of achieving steady growth in bottled water sales for the year and over 20% year-on-year growth in beverage sales. The bank believes that the key uncertainty lies in PET prices; if PET prices remain high, it will affect profit margins, especially in the second half of this year.

The bank has lowered its earnings forecasts for 2026 and 2027 by 19% and 22% respectively to reflect the upward trend in PET prices; the target price has been reduced from HKD 13.1 to HKD 10.7, with a projected 5% dividend yield providing downside protection, maintaining an "outperform" rating

### Related Stocks

- [02460.HK](https://longbridge.com/en/quote/02460.HK.md)

## Related News & Research

- [Pet Valu Holdings Q1 2026 Earnings Call Transcript](https://longbridge.com/en/news/286111791.md)
- [Pet Valu (TSX:PET) Trims 2026 Profit Outlook While Maintaining Dividend: What Does This Signal?](https://longbridge.com/en/news/286654100.md)
- [Olive Tree People Inc. Subsidiary Announces Launch of Hydroxytyrosol-Based Waterless Pet Brand ‘Is That Matty?’ | OLVI Stock News](https://longbridge.com/en/news/286804988.md)
- [17:54 ETGolden Pet Brands Acquires Petsource Facility in Seward, Nebraska](https://longbridge.com/en/news/286001902.md)
- [Telix Announces Collaborations to Explore PSMA-PET Imaging in Emerging Prostate Cancer Treatment Approaches | TLX Stock News](https://longbridge.com/en/news/286547990.md)