"Large Banks" Huayan lowered the target price for CR BEVERAGE to 8 yuan and cut earnings forecasts, maintaining a "Reduce" rating

HSBC Research published a report indicating that CR Beverage (02460.HK) performed below the bank's and market expectations last year, primarily due to intensified competition and management changes. Last year, the company's revenue and net profit were 5.4% and 17.1% lower than the bank's forecasts, respectively.

The report anticipates that CR Beverage's revenue will stabilize this year, but profitability will still face challenges. The bank believes that the new chairman aims to drive a return to growth through internal restructuring, channel improvements, and breakthroughs in the beverage business. Due to fierce competition, uncertainty in raw material prices, and rising costs associated with new incentive plans, profit margins are expected to remain under pressure.

The bank has lowered its earnings forecast for the company for 2026 to 2027 by 33% to 34%, maintaining a "Reduce" rating and lowering the target price from HKD 8.8 to HKD 8