China Resources Beer (Holdings) Co. Ltd.
- 41.35 HKD
- -1.40
- -3.27%
Hong Kong
Sep 16, 2019Ticker
HKG(291)Prev. close
42.75Market cap (HKD)
138,688.56MMarket cap (USD)
17,734.25MShares
3,244.17M
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Company Background
China Resources Beer is a state-owned major beverage maker and a core subsidiary of China Resources (Holdings), a conglomerate that operates electricity, food and other businesses. China Resources beer's business is well known for its "Snow" beverage, accounting for about 20% of the Chinese beer market.
Founded in 1992, the company also runs a distribution business, with about 4,800 shops, including those in the China Resources Vanguard chain. It also operates a food business under its Pacific Coffee unit and has established a mineral water brand "C'estbon" in its beverage business. The company also offers soft drink brands through a joint venture it established in 2011 with Japanese beverage giant Kirin Holdings.
In May 2015, China Resources Beer announced it will sell all its non-beer businesses to its parent company, aiming to spin off its distribution business, which has been in the red, and focus on its competitive beer business.
In 2014, the company had the largest share of China's beer market for the ninth straight year. Previously, another leading Chinese beer maker Tsingtao Brewery held the country's top market share. It is said there were 800 beer companies in China, and China Resources Enterprise acquired them one after another to reach the top. SABMiller Asia Pacific, a unit under British beer maker SABMiller, has a 49% stake in brewing company China Resources Snow Breweries, a unit under China Resources Beer and also a joint venture, providing technical cooperation for beer production.
Despite its commanding lead in the domestic beer market, China Resources Beer is little known abroad. Although China is the world's largest beer consumer, in 2014 the domestic market contracted from a year earlier, due to the country's economic slowdown and other negative factors. This shows there are signs of uncertainty about the company's outlook.
Business Summary
Financial Highlights
| Dec 2018 | HKD | USD |
| Revenue | 37,744.99M | 4,815.92M |
| Gross Profit | 13,236.27M | 1,688.82M |
| Operating income | 1,833.53M | 233.94M |
| Income before tax | 1,814.58M | 231.52M |
| Net income | 1,157.21M | 147.64M |
| EBITDA | 3,792.62M | 483.90M |
| Diluted EPS | 0.35 | 0.04 |
| Dividends Per Share | 0.13 | 0.01 |
| Total Assets | 44,782.96M | 5,719.88M |
| Total liabilities | 21,604.06M | 2,759.36M |
| Total equity | 21,493.45M | 2,745.24M |
| Operating cash flow | 4,715.31M | 601.63M |
| Currency in HKD | Currency in USD |
Historical Data
| Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | |
| Revenue | 34,482M | 34,486.88M | 33,526.60M | 34,283.57M | 37,744.99M |
| Gross Profit | 11,922M | 10,686.87M | 11,274.07M | 11,537.78M | 13,236.27M |
| Operating income | 1,506M | 1,625.72M | 1,631.11M | 1,678.89M | 1,833.53M |
| Income before tax | 2,285M | 2,125.28M | 2,031.87M | 2,094.00M | 1,814.58M |
| Net income | 730M | 822.73M | 734.93M | 1,354.87M | 1,157.21M |
| EBITDA | 3,659M | 3,758.41M | 3,641.96M | 3,646.06M | 3,792.62M |
| Diluted EPS | -0.06 | -1.76 | 0.25 | 0.41 | 0.35 |
| Dividends Per Share | 0.24 | 0 | 0.09 | 0.17 | 0.13 |
| Total Assets | 181,364M | 51,043.86M | 47,559.79M | 48,799.30M | 44,782.96M |
| Total liabilities | 110,876M | 27,283.54M | 26,866.87M | 24,824.00M | 21,604.06M |
| Total equity | 48,747M | 12,001.89M | 19,636.40M | 22,113.40M | 21,493.45M |
| Operating cash flow | 4,573M | 5,754.18M | 5,006.67M | 4,881.01M | 4,715.31M |
| Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | |
| Revenue | 4,446.60M | 4,448.44M | 4,319.07M | 4,399.38M | 4,815.92M |
| Gross Profit | 1,537.39M | 1,378.49M | 1,452.38M | 1,480.56M | 1,688.82M |
| Operating income | 194.20M | 209.70M | 210.12M | 215.44M | 233.94M |
| Income before tax | 294.66M | 274.13M | 261.75M | 268.70M | 231.52M |
| Net income | 94.13M | 106.12M | 94.67M | 173.86M | 147.64M |
| EBITDA | 471.84M | 484.79M | 469.17M | 467.87M | 483.90M |
| Diluted EPS | -0.00 | -0.22 | 0.03 | 0.05 | 0.04 |
| Dividends Per Share | 0.03 | 0 | 0.01 | 0.02 | 0.01 |
| Total Assets | 23,387.17M | 6,586.17M | 6,134.25M | 6,242.47M | 5,719.88M |
| Total liabilities | 14,297.63M | 3,520.38M | 3,465.28M | 3,175.52M | 2,759.36M |
| Total equity | 6,286.00M | 1,548.60M | 2,532.70M | 2,828.77M | 2,745.24M |
| Operating cash flow | 589.70M | 742.22M | 644.98M | 626.34M | 601.63M |
Valuation Measures
| Dec 2018 | |
| PER | 76.67 |
| ROA | 2.47% |
| ROE | 5.30% |
| Operating margin | 4.85% |
| Profit margin | 3.06% |
Key executives
- Chief Executive Officer & Executive Director: Xiao Hai Hou
- CFO, Secretary & Executive Director: Po Sing Lai
- Chief Human Resources Officer & Senior VP: Xian Liang Wang
Shareholders
- China State-Owned Assets Supervision & Admn Commission (51.6%)
- Hillhouse Capital Management Ltd. (Hong Kong) (6.0%)
- Matthews International Capital Management LLC (2.0%)
- The Vanguard Group, Inc. (1.7%)
- Massachusetts Financial Services Co. (1.5%)
- Canada Pension Plan Investment Board (1.4%)
- Morgan Stanley Investment Management, Inc. (1.1%)
- BlackRock Fund Advisors (1.0%)
- Morgan Stanley Asia Ltd. (Investment Management) (0.9%)
- Fidelity Management & Research Co. (0.9%)
Contact Details
- Website:http://www.crbeer.com.hk
- Address: 39/F, China Resources Building, 26 Harbour Road, Hong Kong, Hong Kong
- Phone: +852.2827.1028
Related Companies
- Wan Hsin Co. Ltd.
- Heineken NV /China Brewing Business/
- Delaware Industrial Ltd.
- China Resources Development & Investment Co. Ltd.
- Ng Fung Frozen Meats & Aquatic Products Co. Ltd.
- China Resources Textiles Co. Ltd.
- China Resources Property Ltd.
- CRE Beverage Trading Ltd.
- China Resources Enterprise Ltd. /Non-Beer Business/
- China Resources Kirin Beverages (Greater China) Co. Ltd.
- China Resources Vanguard (Hong Kong) Co. Ltd.
- China Resources Retail (Group) Co., Ltd.
- Shenzhen CR Care Investment Co. Ltd.
- China Resources Logistics (Pak Sik Enterprises) Ltd.
- China Resources Logistics (Group) Ltd.
- Festive Wise Ltd.
- Jiangsu Huilin Commerce Co. Ltd.
- China Resources Vanguard Guangzhou Superstore Co. Ltd.
- C'estbon Food & Beverage (Shenzhen) Co. Ltd.
- Tactical Solutions, Inc.
- Preparis Ltd.
- China Resources Petrochems Holdings Ltd.
- Best Growth International Ltd.
- Zhejiang Cikelong Supermarket Ltd.
- China Resources Snow Breweries Ltd.
- China Resources Vanguard Co., Ltd.
- Surefaith Investments Ltd.
- Wealth Choice Investments Ltd.
- Aiming Investments Ltd.
- CRE Finance (Cayman Islands) Ltd.
Competitors
- Anheuser-Busch InBev SA/NV
- Tsingtao Brewery Co., Ltd. Class H
- Beijing Yanjing Brewery Co., Ltd. Class A
- Carlsberg A/S Class B
- Asahi Group Holdings,Ltd.
- San Miguel Food & Beverage, Inc.
- San Miguel Corp.
- Top Frontier Investment Holdings, Inc.
- Grand Ocean Retail Group Ltd.
- Yinchuan Xinhua Commercial Group Co., Ltd. Class A
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Last Updated on 16 Sep, 2019