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Consumer Non-Durables

China Resources Beer (Holdings) Co. Ltd.

  • 34.75 HKD
  • -0.40
  • -1.14%
  • Hong Kong
    Apr 19, 2018
  • Ticker
    HKG(291)
  • Prev. close
    35.15
  • Market cap (HKD)
    114,032.82M
  • Market cap (USD)
    14,529.33M
  • Shares
    3,244.17M

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

China Resources Beer (Holdings) Co. Ltd. operates as an investment holding company that is principally engaged in the manufacture, sales and distribution of beer products. The company was founded in 1992 and is headquartered in Hong Kong.

Financial Highlights

Dec 2017 HKDUSD
Revenue34,283.57M4,399.38M
Gross Profit11,537.78M1,480.56M
Operating income1,678.89M215.44M
Income before tax2,094.00M268.70M
Net income1,354.87M173.86M
EBITDA3,646.06M467.87M
Diluted EPS0.410.05
Dividends Per Share0.160.02
Total Assets48,799.30M6,242.47M
Total liabilities26,609.07M3,403.86M
Total equity22,113.40M2,828.77M
Operating cash flow----
Currency in HKDCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 146,413M 34,482M 34,486.88M 33,526.60M 34,283.57M
Gross Profit 37,337M 11,922M 10,686.87M 11,274.07M 11,537.78M
Operating income 2,774M 1,506M 1,625.72M 1,801.70M 1,678.89M
Income before tax 5,019M 2,285M 2,125.28M 2,031.87M 2,094.00M
Net income 1,908M 730M 822.73M 734.93M 1,354.87M
EBITDA 6,663M 3,659M 3,758.41M 3,812.54M 3,646.06M
Diluted EPS 0.72 -0.06 -1.76 0.25 0.41
Dividends Per Share 0.24 0.24 11.27 0.09 0.16
Total Assets 155,289M 181,364M 51,043.86M 47,559.79M 48,799.30M
Total liabilities 94,960M 110,876M 27,283.54M 26,866.87M 26,609.07M
Total equity 44,073M 48,747M 12,001.89M 19,636.40M 22,113.40M
Operating cash flow 11,011M 4,573M 5,754.18M 5,006.67M --
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 18,875.82M 4,446.60M 4,448.44M 4,319.07M 4,399.38M
Gross Profit 4,813.55M 1,537.39M 1,378.49M 1,452.38M 1,480.56M
Operating income 357.62M 194.20M 209.70M 232.10M 215.44M
Income before tax 647.05M 294.66M 274.13M 261.75M 268.70M
Net income 245.98M 94.13M 106.12M 94.67M 173.86M
EBITDA 859.00M 471.84M 484.79M 491.15M 467.87M
Diluted EPS 0.09 -0.00 -0.22 0.03 0.05
Dividends Per Share 0.03 0.03 1.45 0.01 0.02
Total Assets 20,027.60M 23,387.17M 6,586.17M 6,134.25M 6,242.47M
Total liabilities 12,246.97M 14,297.63M 3,520.38M 3,465.28M 3,403.86M
Total equity 5,684.08M 6,286.00M 1,548.60M 2,532.70M 2,828.77M
Operating cash flow 1,419.55M 589.70M 742.22M 644.98M --

Valuation Measures

Dec 2017
PER67.57
ROA2.81%
ROE6.49%
Operating margin4.89%
Profit margin3.95%

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 (51.9%)
  • Hillhouse Capital Management Ltd. (Hong Kong) (5.5%)
  • Matthews International Capital Management LLC (2.4%)
  • The Vanguard Group, Inc. (1.6%)
  • Massachusetts Financial Services Co. (1.3%)
  • BlackRock Fund Advisors (1.2%)
  • Fidelity Management & Research Co. (1.1%)
  • Morgan Stanley Asia Ltd. (Investment Management) (0.9%)
  • Genesis Investment Management LLP (0.8%)
  • Schroder Investment Management Ltd. (0.6%)

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

  • 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.
  • 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.
  • Hebe Haven Ltd.
  • Suguo Supermarket Co., Ltd.
  • Anhui Longjin Group Ltd./Two Breweries

Competitors

  • Asahi Group Holdings,Ltd.
  • San Miguel Corp.
  • Top Frontier Investment Holdings, Inc.
  • Yinchuan Xinhua Commercial Group Co., Ltd. Class A
Last Updated on 19 Apr, 2018

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