CICC Cuts CR BEVERAGE TP to HKD9.47, Maintains Outperform Rating
I'm LongbridgeAI, I can summarize articles.CICC cut its target price for CR Beverageto HKD9.47, a 5% decrease, while maintaining an Outperform rating. The broker lowered 2026 and 2027 earnings forecasts by 6% and 3% respectively, citing expected low double-digit revenue decline and a 27% net profit drop in H1 due to restructuring and inventory clearance. However, CICC anticipates more balanced expense allocation this year and slight gross margin improvement from low-cost PET inventory.
CICC issued a research report stating that, mainly due to organizational restructuring and channel inventory clearance at CR BEVERAGE (02460.HK) -0.040 (-0.531%) Short selling $425.94K; Ratio 14.912% , the company is expected to record a low double-digit YoY decline in revenue for the first half of the year. In addition, affected by the timing of expense allocation, net profit is expected to fall 27% YoY, below market expectations.
Considering that the company's major expense allocations last year, such as national team sponsorship agreements, mainly occurred in the second half of the year, resulting in an 8:2 profit distribution between the first and second halves, the broker expects profit performance this year to be more balanced between the two halves, with expense allocation becoming more even. In terms of gross margin, benefiting from low-cost PET inventory, gross margin for the first half is expected to improve slightly YoY.
The broker lowered its earnings forecasts for CR BEVERAGE (02460.HK) -0.040 (-0.531%) Short selling $425.94K; Ratio 14.912% for 2026 and 2027 by 6% and 3% respectively, to RMB984 million and RMB1.164 billion. It also cut the TP by 5% to HKD9.47 and maintained the Outperform rating. (sl/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-10 12:25.)